Circular No. 02/2017/TT-BTC guiding the management of state budget funds for environmental protection programs

CIRCULAR

Guidelines for managing state budget funds for environmental protection activities

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Pursuant to the Environmental Protection Law on June 23, 2014;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection;

Pursuant to Decree No. 18/2015/NĐ-CP dated February 14, 2015 of the Government on planning for environmental protection, strategic environmental assessment, environmental impact assessment, and environmental protection plans;

At the proposal of the Director General of the Environment Administration, the Director of the Water Resource Management Department, and the Head of the Legal Department;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular guiding the management of state budget funds for environmental protection activities.

Article 1. Scope of Regulation

1. Scope of application: This Circular guides the management of state budget funds for environmental protection activities to implement environmental protection tasks (including environmental protection projects, programs, and plans if any) funded by the state budget.

2. Tasks related to environmental protection expenses from other sources of funding (such as expenses from science and technology funds, development capital, and other sources) are not within the scope of application of this Circular.

Article 2. Applicability

1. Ministries, ministerial-level agencies, and government agencies (hereinafter referred to as ministries and central agencies), People's Committees of provinces and centrally-administered cities (provincial level), People's Committees of districts, counties, towns, and centrally-administered city districts (district level); People's Committees of communes, wards, and towns (commune level).

2. Agencies, units, and individuals involved in the use of state budget funds for environmental protection activities.

Article 3. Funds for implementing environmental protection expenditure tasks

1. State budget funds

a) Central budget (including domestic and foreign sources) ensures funds for implementing environmental protection tasks carried out by ministries and central agencies;

b) Local budget ensures funds for local agencies and units to carry out environmental protection tasks according to their respective levels;

c) The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, and provincial People's Committees to propose competent authorities to allocate at least 1% of the total state budget expenditure in the annual budget estimate for environmental protection expenses.

2. Other sources as prescribed by law (if any).

3. Environmental protection projects and plans must be approved by competent authorities before they can be allocated funds and implemented.

4. Agencies, units, and individuals using state budget funds for environmental protection must comply with the approved content; manage and use funds in accordance with regulations, economically, and effectively; be subject to inspection and supervision by competent authorities; implement settlement and public financial reporting procedures as prescribed.

Article 4. Environmental protection expenditure tasks

a) Developing, adjusting strategies, plans, technical procedures, technical guidelines, economic and technical norms, technical standards, programs, and plans for environmental protection under the responsibility of the central level;

b) Developing, reviewing, and announcing regional and national environmental protection plans; conducting reviews of strategic environmental assessments; reviewing other tasks as prescribed by environmental protection laws, funded from environmental protection expenses, under the responsibility of the central level;

c) Activities of the national environmental monitoring and analysis system managed by central agencies according to the National Master Plan for Environmental Monitoring Network for the period 2016-2025, with a vision to 2030, approved by the Prime Minister (including operation, maintenance, repair, calibration, testing, replacement of auxiliary equipment, tools, and instruments); developing and implementing current status monitoring programs, environmental impact monitoring programs in management areas;

d) Supporting national and inter-provincial environmental pollution control work, including river basins (including controlling pollution sources and adverse impacts on the environment); assessing inter-provincial polluted areas as prescribed by environmental protection laws; preventing, responding to, and mitigating environmental emergencies at regional and national levels;

đ) Supporting waste management work, assessing inter-provincial pollution sources, and evaluating environmental carrying capacity as prescribed by environmental protection laws;

e) Supporting pollution remediation projects approved by competent authorities (including investigation, analysis, evaluation of pollution conditions, planning, formulating remediation plans and projects, purchasing waste treatment technology licenses if necessary, inspecting, and accepting projects);

- Projects to thoroughly address facilities causing serious environmental pollution in public utility areas managed by the central government (for projects with a nature of public service funded from the environmental public service budget), listed in project categories pursuant to Prime Minister Decisions (Decision No. 64/2003/QĐ-TTg dated April 22, 2003 on approving the Plan to Thoroughly Address Facilities Causing Serious Environmental Pollution, Decision No. 58/2008/QĐ-TTg dated April 29, 2008 on Targeted Support from the State Budget to Thoroughly Address, Remediate Pollution, and Mitigate Environmental Degradation for Certain Public Utility Entities, Decision No. 1946/QĐ-TTg dated October 21, 2010 on Approving the Plan to Address and Prevent Chemical Pesticide Pollution Nationwide, Decision No. 38/2011/QĐ-TTg dated July 5, 2011 amending and supplementing certain provisions of Decision No. 58/2008/QĐ-TTg dated April 29, 2008 of the Prime Minister, Decision No. 1788/QĐ-TTg dated October 1, 2013 on Approving the Plan to Thoroughly Address Facilities Causing Serious Environmental Pollution until 2020) and other Prime Minister Decisions amending and supplementing these;

- Other environmental protection projects as decided by the Prime Minister;

g) Supporting biodiversity conservation work pursuant to Joint Circular No. 160/2014/TTLT-BTC-BTNMT dated October 29, 2014 of the Ministry of Finance and the Ministry of Natural Resources and Environment on guiding the management, use, and settlement of regular expenses from the state budget for implementing tasks and projects under the National Biodiversity Conservation Strategy to 2020, with a vision to 2030;

h) Building and maintaining the operation of environmental information systems and databases (including data collection, processing, exchange, maintenance, repair, and replacement of storage equipment); national environmental statistics, building a national environmental statistics database; national environmental reports (including environmental protection work reports); evaluating and ranking local environmental protection results.

i) Promoting and disseminating environmental protection laws to raise awareness and environmental consciousness (including building and promoting exemplary models and best practices for pollution prevention and control, waste management, pollution remediation, and environmental improvement as decided by competent authorities); training specialized knowledge on environmental protection to the provincial level; awarding national prizes and commendations for environmental protection to organizations and individuals as decided by competent authorities;

k) Supporting inspection and supervision work on the implementation of environmental protection laws (including nature conservation and biodiversity) under the responsibility of the central level and as decided by competent authorities;

l) Activities to inspect environmental protection works serving the operation phase of projects; activities to inspect the completion of detailed environmental protection programs, confirm environmental protection programs; inspect and confirm the completion of pollution remediation and environmental improvement; activities to inspect the implementation of environmental certification and permits according to environmental protection laws, which fall under the responsibility of the central government;

m) Activities of the Steering Committee, Management Board, and Permanent Office for environmental protection as decided by the competent authority; counterpart funds for international cooperation projects with a nature of public service for environmental protection (if any); coordination activities to implement international treaties that Vietnam has joined;

n) Capital support for the Vietnam Environmental Protection Fund according to the Prime Minister's decision (if any);

o) Support for localities according to projects decided by the competent authority;

p) Other environmental protection activities falling under the responsibility of the central government.

a) Developing, adjusting strategies, plans, technical procedures, technical guidelines, economic and technical norms, environmental technical standards, programs, and detailed environmental protection plans at the local level;

b) Developing, reviewing, and announcing local environmental planning; activities to review strategic environmental impact assessments at the local level; reviewing other tasks as stipulated by environmental protection laws funded from the environmental public service budget, which fall under the responsibility of the locality;

c) Activities of the environmental monitoring and analysis system managed by local agencies and units according to the National Overall Network Planning for Resource and Environmental Monitoring up to 2020 approved by the Prime Minister (including operation, maintenance, repair, calibration, inspection, replacement of auxiliary equipment, tools, and instruments); developing and implementing current environmental monitoring programs and environmental impacts of the locality;

d) Supporting local environmental pollution control work (including controlling pollution sources and negative environmental impacts); identifying polluted areas within the province according to environmental protection laws; preventing, responding to, and remediating environmental incidents at the local level;

đ) Supporting local waste management work, investigating and assessing pollution sources, evaluating environmental carrying capacity, as stipulated by environmental protection laws; statistics and updating waste generation and discarded product situations;

e) Supporting environmental pollution remediation work according to approved projects (including investigation and survey, analysis and assessment of pollution conditions, planning and drafting remediation and environmental improvement programs, purchasing waste treatment technology licenses if necessary, inspecting and accepting projects), including:

- Projects thoroughly addressing sources of serious environmental pollution in public utility areas managed by localities (for projects with the nature of public service expenditures allocated from environmental public service funds), listed in project categories according to Decisions of the Prime Minister (Decision No. 64/2003/QĐ-TTg dated April 22, 2003 approving the Plan to Thoroughly Address Sources of Serious Environmental Pollution, Decision No. 58/2008/QĐ-TTg dated April 29, 2008 supporting targeted activities from the state budget to thoroughly address, remediate pollution, and mitigate environmental degradation for certain entities in public utility areas, Decision No. 1946/QĐ-TTg dated October 21, 2010 approving the plan to handle and prevent environmental pollution caused by residual pesticides nationwide, Decision No. 38/2011/QĐ-TTg dated July 5, 2011 amending and supplementing some provisions of Decision No. 58/2008/QĐ-TTg dated April 29, 2008 of the Prime Minister, Decision No. 1788/QĐ-TTg dated October 1, 2013 approving the Plan to Thoroughly Address Sources of Serious Environmental Pollution until 2020) and other Decisions amending and supplementing these Decisions of the Prime Minister;

- Support for activities related to the collection, sorting, transportation, treatment, and landfill disposal of household waste in localities (excluding construction activities for waste treatment facilities);

- Other environmental protection projects as decided by competent authorities;

g) Supporting biodiversity conservation work according to Circular Joint No. 160/2014/TTLT-BTC-BTNMT dated October 29, 2014 of the Ministry of Finance and the Ministry of Natural Resources and Environment on guiding the management, use, and settlement of regular expenditure funds from the state budget to implement national biodiversity strategy tasks and projects until 2020, vision to 2030;

h) Building and maintaining environmental information systems and databases (including data collection, processing, exchange, maintenance, repair, and replacement of storage equipment); environmental statistics, building local environmental statistical databases; reporting on local environmental protection work;

i) Managing public sanitation works; supporting equipment and means for public waste collection and environmental sanitation in residential areas according to decisions by the competent authority; supporting environmental protection activities of self-managed environmental organizations (cooperatives, neighborhood associations, political-social organizations). Specific support contents are regulated by the Provincial People's Committee;

k) Supporting the maintenance and operation of public pollution treatment works; supporting repairs and improvements to environmental infrastructure for encouraged craft villages;

l) Promoting and disseminating environmental protection laws to raise awareness and environmental consciousness (including building and promoting advanced models and exemplary practices in pollution prevention and control, waste management, pollution remediation, and environmental improvement according to decisions by the competent authority); training specialized environmental protection skills; awarding prizes and commendations for environmental protection to organizations and individuals as decided by the competent authority;

m) Support for inspection and supervision activities regarding the implementation of laws on environmental protection (including nature conservation and biodiversity) within the responsibility of local authorities and pursuant to decisions of competent authorities;

n) Activities to inspect environmental protection facilities serving the operational phase of projects; activities to inspect the completion of detailed environmental protection plans; inspections and confirmations of the completion of pollution remediation and environmental improvement; activities to inspect the implementation of environmental certificates and permits in accordance with laws on environmental protection, within the responsibility of local authorities;

o) Activities to confirm environmental protection plans; confirmation of simple environmental protection plans (including office supplies, photocopying documents, overtime work, field inspections if necessary);

p) Activities of the Steering Committee, Management Board, and Permanent Office for environmental protection as decided by competent authorities;

q) Counterpart funds for international cooperation projects with the nature of public service expenditures for environmental protection;

r) Employment contracts for implementing tasks to support environmental protection work at the district and commune levels;

s) Other environmental protection activities within the responsibility of local authorities.

The specific allocation of responsibilities for public service expenditures on environmental protection mentioned above among local budgets shall be proposed by the People's Committee of the province to the People's Council at the same level for decision;

Article 5. Funding Levels

1. The expenditure levels for implementing environmental protection tasks and projects shall be carried out in accordance with current standards, unit prices, and financial expenditure regulations established by competent state agencies;

The expenditure levels specified in Appendix 01 attached to this Circular are maximum levels. Based on actual circumstances and the capacity of local budgets, the People's Committee of the province shall specify concrete expenditure levels for implementation in localities.

3. Request documents from ministries, central agencies, provincial People's Committees (for projects supported from the central government's environmental expenditure budget); documents from local agencies requesting provincial People's Committees (for projects supported from the local government's environmental expenditure budget), clearly stating the source of the support funds.

5. Approval decisions on projects issued by ministries, central agencies, provincial People's Committees according to current regulations and included in the annual budget plan.

6. For local projects requesting partial support from the central government budget, in addition to the conditions and principles stipulated in Clauses 1 through 5 of this Article, the following conditions must be met:

a) The provincial People's Committee must issue a commitment letter ensuring sufficient counterpart funding from the locality according to the prescribed ratio to implement the project and commit that the project has not been funded or supported from other sources (government bonds, ODA funds, foreign aid, national target program funds, special programs, and other sources if applicable).

In case the locality fails to provide sufficient counterpart funding for the project as prescribed, the provincial People's Committee shall be responsible for repaying the central government budget for the difference (deposit or cancel at the State Treasury).

b) The locality still receives balanced fiscal assistance from the central government.

Article 7. Budget Preparation, Execution, and Settlement

The preparation, allocation, execution, and settlement of environmental protection expenditure budgets shall be carried out in accordance with the State Budget Law and current guiding documents.

This Circular provides detailed guidance on the following additional matters:

1. Budget preparation method

Based on the environmental protection tasks approved by the competent authority, agencies and units prepare the budget estimates according to Appendices 01 to 05 attached to this Circular.

2. Budget preparation and allocation process

Annually, based on the Prime Minister's Directive on building plans for economic and social development and the state budget estimate for the next year, the Circular guiding the preparation of the state budget estimate for the next year issued by the Ministry of Finance; the Ministry of Natural Resources and Environment guides specialized tasks and key activities in environmental protection for central ministries and agencies and provinces/cities directly under the Central Government, serving as the basis for preparing the environmental protection expenditure budget.

a) At the central level

- Central ministries and agencies guide specialized tasks and key activities in environmental protection for their subordinate units;

- The Ministry of Finance proactively allocates and notifies the check amount for environmental protection expenditure for the next year to each central ministry and agency;

- Central ministries and agencies prepare the environmental protection expenditure budget estimate and send it to the Ministry of Natural Resources and Environment, while also consolidating it into the next year's budget estimate to be sent to the Ministry of Finance and the Ministry of Planning and Investment in accordance with the State Budget Law;

- The Ministry of Natural Resources and Environment consolidates the environmental protection expenditure budget estimates of central ministries and agencies and sends them to the Ministry of Finance before August 20th of the year preceding the planning year. The Ministry of Finance reviews the environmental protection expenditure budget estimates of central ministries and agencies, consolidates them into the central budget allocation plan, and submits it to the competent authorities for approval;

- The allocation and assignment of the central government's environmental protection expenditure budget are carried out in accordance with the State Budget Law and current guiding documents.

b) At the local level

- The Department of Natural Resources and Environment guides specialized tasks and key activities in environmental protection for the locality;

- Local financial agencies proactively propose allocations of the check amount for environmental protection expenditure to be reported to the provincial People's Committee for notification to each subordinate unit;

- Local agencies and units prepare the environmental protection expenditure budget estimate and send it to the natural resources and environment agency, while also consolidating it into the next year's budget estimate to be sent to the local financial agency and the local planning and investment agency in accordance with the State Budget Law;

- The local natural resources and environment agency consolidates the environmental protection expenditure budget estimates of agencies and units and submits them to the local financial agency for review and consolidation into a report to the competent authority as required.

- The Department of Natural Resources and Environment collaborates with the Department of Finance to report to the provincial People's Committee for submission to the Provincial People's Council to determine the total environmental protection expenditure budget for the locality, ensuring it does not fall below the guidance on environmental protection expenditure budget announced by the Ministry of Finance.

- The allocation and assignment of the local government's environmental protection expenditure budget are carried out in accordance with the State Budget Law and current guiding documents.

3. On budget execution

Based on the state budget expenditure budget allocated by the competent state agency, units withdraw the budget estimate from the State Treasury where transactions are conducted. The State Treasury where transactions are conducted implements expenditure control according to current regulations.

For projects to address serious environmental pollution sources in public utility areas supported from local government budgets and central government budgets, the State Treasury at the transaction location shall disburse funds according to the progress of implementation and corresponding to the proportion of central budget support.

4. Regarding accounting entries: The expenses for environmental protection activities as stipulated in this Circular shall be reflected and settled under the category of environmental protection activity expenses with corresponding Clauses, according to the relevant Chapters of central agencies, localities, and detailed according to the State Budget Manual.

Article 8. Inspection work,

Ministries, central agencies, and localities shall coordinate with natural resources and environment agencies and financial agencies at the same level to regularly and unexpectedly inspect subordinate units on the implementation of environmental protection tasks, management and use of environmental protection activity expenses, settlement of accounts, to ensure that allocated funds are used for their intended purposes and effectively.

Article 9. Implementation Organization

1. This Circular takes effect from February 22, 2017, and replaces Circular Joint No. 45/2010/TTLT-BTC-BTNMT dated March 30, 2010, issued by the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the management of environmental protection activity expenses, and Circular Joint No. 01/2008/TTLT-BTNMT-BTC dated April 29, 2008, issued by the Ministry of Natural Resources and Environment and the Ministry of Finance guiding the preparation of budgets for environmental protection activities funded by environmental protection activity expenses.

2. Specific expenditure levels and the preparation of project budgets for biodiversity from environmental protection activity funds according to Circular Joint No. 160/2014/TTLT-BTC-BTNMT dated October 29, 2014, issued by the Ministry of Finance and the Ministry of Natural Resources and Environment on guiding the management, use, and settlement of regular expenditures from the state budget for implementing tasks and projects under the National Biodiversity Strategy until 2020, vision to 2030, shall be implemented according to Appendices 01 to 05 attached to this Circular.

3. The expenditure level for labor contracts to implement county and commune-level environmental protection support tasks as specified in Point q Clause 2 Article 4 shall be carried out according to the expenditure level in Appendix 01 attached to this Circular, replacing the expenditure level for labor contracts to implement county and commune-level environmental protection support tasks as stipulated in Clause 3 Part II of Circular Joint No. 70/2008/TTLT-BTC-BTNMT dated July 24, 2008, issued by the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the operating expenses of organizations, specialized departments, and personnel responsible for environmental protection and the implementation of labor contracts according to Decree No. 81/2007/NĐ-CP dated May 23, 2007, of the Government on organizing specialized departments for environmental protection in state agencies and state-owned enterprises. Other provisions regarding labor contracts to implement county and commune-level environmental protection support tasks shall be carried out according to Clause 3 Part II of Circular Joint No. 70/2008/TTLT-BTC-BTNMT dated July 24, 2008, issued by the Ministry of Finance and the Ministry of Natural Resources and Environment as mentioned above.

4. The financial autonomy mechanism of public service units in the field of environmental protection activity expenses shall be implemented according to Decree No. 141/2016/NĐ-CP dated October 10, 2016, of the Government on the financial autonomy mechanism of public service units in the fields of economic public services and other public services, and guidance documents for Decree No. 141/2016/NĐ-CP mentioned above.

5. If legal normative documents cited for application in this Circular are amended, supplemented, or replaced by new legal normative documents, they shall be applied according to those new documents.

6. For other expenditure items from environmental protection activity funds not specified in this Circular, they shall be implemented according to current guiding documents.

7. During the implementation process, if there are any difficulties, agencies and units are requested to report to the Ministry of Finance for study and appropriate amendment./.