Circular No. 04/TC-TCNH guiding the use of lottery revenue as prescribed in Directive No. 814/TTg dated December 12, 1995 and Decision No. 861/TTg dated December 30, 1995 of the Government Prime Minister.

CIRCULAR

OF THE MINISTRY OF FINANCE

Guidelines for the use of lottery revenue as prescribed in Directive No. 814/TTg dated December 12, 1995 and Decision No. 861/TTg dated December 30, 1995of the Prime Minister

Pursuant to the provisions at Point 4, Section III of Directive No. 814/TTg dated December 12, 1995 of the Government: "all lottery revenue shall only be used for investment in building public welfare facilities and funding health care and education services in localities, and shall not be used for other purposes," and the provisions at Subpoint b, Point 1, Section I of Decision No. 861/TTg dated December 30, 1995 of the Government on certain mechanisms and measures for managing and operating the state budget in 1996, the Ministry of Finance hereby provides guidance as follows:

I. GENERAL PROVISIONS:

1. From 1996 onwards, lottery revenue shall only be used for investment in social welfare projects and funding health care, education, and cultural-social services in localities, and shall not be used for other purposes.

2. The entire lottery revenue, after being fully remitted to the state budget, shall be allocated entirely to the local budget. This revenue shall be reflected in the current state budget classification and used for investment in social welfare projects and funding health care, education, and cultural-social services in the locality.

3. When using funds from lottery revenue for basic construction investments, management must comply with the regulations set forth in the Investment Construction Management Regulation issued together with Decree No. 177/CP dated October 20, 1994 of the Government and related guiding documents. When using funds from lottery revenue for the allocation of administrative and public service expenses, it must comply with the current administrative and public service expense management system.

II. SPECIFIC PROVISIONS:

1. Annually, based on the conditions and potential for exploiting lottery revenue in the locality and the guidelines of the Ministry of Finance and the Ministry of Planning and Investment, the Department of Finance and Price Control shall coordinate with the Department of Planning and Investment to develop plans for using this capital according to the specified objectives to submit to the People's Council and the Provincial People's Committee for consideration and approval. Specifically:

a) For provinces and centrally-administered cities with lottery revenue reaching up to 20 billion VND, all of it can be used for investment in constructing, repairing, and upgrading social welfare facilities (hospitals, schools, parks, etc.)

b) For provinces and cities with lottery revenue exceeding 20 billion VND, it will be distributed as follows:

Allocate 20 billion VND and 34.7% of the excess revenue (above 20 billion VND) for investment in constructing, repairing, and upgrading social welfare facilities (hospitals, schools, parks, etc.).

Use 65.3% of the remaining excess revenue (above 20 billion VND) for balancing expenditures on education, healthcare, cultural, and social services in the locality.

Example: Province A has lottery revenue of 17 billion VND, which can be used entirely for investment.

Province B has lottery revenue of 58 billion VND, the amount available for investment is: 20 billion + (58 billion - 20 billion) * 34.7% = 33.18 billion VND.

The remaining lottery revenue for balancing expenditures on education, healthcare, cultural, and social services in Province B is: 58 billion - 33.18 billion = 24.82 billion VND.

2. The use of lottery activity revenue for these objectives must be accompanied by extensive publicity through various media channels to ensure that the general public understands the significance and purpose of the State's use of this revenue.

3. To meet the increasing demand for expenditures as stipulated above, the plan for lottery revenue collection must be actively and firmly established based on the exploitation of permitted lottery types and the vigorous fight against social evils, preventing the misuse of lotteries for illegal gambling. In the issuance of lotteries, strict adherence to national regulations must be ensured, without compromising discipline in this field due to the pursuit of revenue.

III. IMPLEMENTATION

1. The People's Committees of provinces and centrally-administered cities are responsible for directing the Departments of Finance and Price Control, the Departments of Planning and Investment, and relevant sectors to implement this Circular; simultaneously strengthening comprehensive management of lottery activities to develop revenue sources, promptly concentrate them into the state budget, and better serve the objectives defined by the Government. It is recommended that the People's Councils of provinces and centrally-administered cities conduct inspections and supervision of the use of lottery activity revenue in accordance with the prescribed purposes.

2. Financial agencies on the local level (Departments of Finance and Price Control, Investment Development Bureaus, National Treasury Offices of provinces and cities) need to enhance coordination to timely and appropriately allocate funds for planned projects and expenditures on education, healthcare, and cultural-social services in line with the progress of lottery revenue collection into the state budget, and avoid passivity.

3. Reporting on the situation of lottery revenue usage and the management and settlement of this capital shall be carried out in accordance with general guidelines and concurrently with the regular reporting system on local budget expenditures. This Circular takes effect from January 1, 1996. Any provisions contrary to those in this Circular are abolished. During implementation, if there are difficulties or obstacles, they should be promptly reported to the Ministry of Finance for research and resolution.