Circular No. 06/2000/TT-BKHĐT guiding the implementation of Decision No. 38/2000/QĐ-TTg dated March 24, 2000 of the Prime Minister.

CIRCULAR

Guidelines for implementing Decision No. 38/2000/QĐ-TTg,

dated March 24, 2000, of the Prime Minister

On March 24, 2000, the Prime Minister issued Decision No. 38/2000/QĐ-TTg, amending and supplementing certain provisions of Decision No. 531/TTg dated August 8, 1996 on managing national programs. Based on relevant provisions, the Ministry of Planning and Investment provides the following guidelines:

I. REGARDING THE DEVELOPMENT OF PLANS FOR NATIONAL TARGET PROGRAMS

The development of plans for national target programs (NTPs) shall be carried out as follows:

1. At provincial level

a) Plan development process.

Annually during the plan development phase (August, September), the People's Committee of the province/city directly under the Central Government (hereinafter referred to as the Provincial People's Committee) assigns tasks to:

- Departments and agencies managing the program, based on guidance from higher-level authorities, conduct an assessment of the implementation of the program and propose objectives, tasks, and funding for the program's implementation in the planning year; at the same time, they coordinate with the Department of Planning and Investment and the Department of Finance and Price to incorporate these into the provincial general plan.

- The Department of Planning and Investment coordinates with the Department of Finance and Price to compile a comprehensive assessment of the implementation of all programs managed by the locality; propose objectives, tasks, policies, and resources for the program's implementation in the planning year. Resources include: additional targeted funds from the Central Budget (Development Investment Funds and Public Service Funds), credit capital (if any), local budget support funds, community mobilization; consolidate and incorporate them into the provincial general plan for submission to the Provincial People's Committee for consideration and approval.

b) Organizing meetings with central program management agencies (PMAs).

The Provincial People's Committee organizes meetings with central PMAs regarding the implementation of the program and proposals for objectives, tasks, and financial requirements from the Central Budget (including Development Investment Funds and Public Service Funds) and state credit investment capital (if any); mechanisms and policies within the planning year. During the meeting, the PMA must provide specific directives to the Provincial People's Committee on program objectives and tasks, initial balance of funding sources, allocation and utilization directions, and management measures to implement the program. The provincial plan document (after consultation with central PMAs) is sent to the Ministry of Planning and Investment, the Ministry of Finance, and the program management agency for consolidation.

2. At central level.

a) During the plan development phase (August, September each year), PMAs base their work on government guidance, the Ministry of Planning and Investment, and the Ministry of Finance, organize research and evaluation of the program's objectives, tasks, resources, strengths, and weaknesses in management and execution in the reporting year; simultaneously, based on provincial People's Committees' plan documents, they aggregate and propose program objectives, tasks, and resource needs for the planning year. Resources include Central Budget funds (Development Investment Funds and Public Service Funds), credit capital (if any), and community contributions according to current regulations. The plan document is sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation.

b) After receiving the PMA document, the Ministry of Planning and Investment collaborates with the Ministry of Finance to consolidate the objectives, tasks of programs to be implemented in the planning year and estimate the budget allocation from the State Budget for each program, and incorporate it into the overall State plan to report to the Government for consideration and submission to the National Assembly for approval.

c) After approval by the National Assembly, the Ministry of Planning and Investment collaborates with the Ministry of Finance to announce targets, tasks, and resources for each NTP to PMAs; PMAs lead the allocation to ministries, sectors, and localities, and send the allocation plan back to the Ministry of Planning and Investment and the Ministry of Finance for incorporation into the overall plan of each ministry, sector, and locality; the Ministry of Planning and Investment submits to the Prime Minister for assignment to ministries, sectors, and localities for implementation.

II. REGARDING THE ASSIGNMENT OF PLAN INDICATORS

1. For the Provincial People's Committee, the assigned indicators and steps for implementing the plan are as follows:

- The Prime Minister assigns the total funding indicator for all NTPs and programs applying the NTP financial mechanism to the Provincial People's Committees. This includes Development Investment Funds and Public Service Funds.

- The Minister of Planning and Investment assigns the Provincial People's Committees guidance indicators for the objectives and tasks of each program to be implemented in their jurisdiction.

- PMAs guide specialized tasks and collaborate with the Ministry of Finance to guide expenditure standards so that provinces can proactively implement them.

a) Total funding indicators for programs:

- The total funding indicator assigned to the Provincial People's Committee covers all NTPs and programs implemented under the NTP financial mechanism (only applicable in 2000) managed by the locality (including Development Investment Expenditure and Public Service Expenditure).

Specifically, for the NTP on employment, within the Development Investment Expenditure, there is capital for small project loans and capital for constructing employment service centers.

- The total funding indicator assigned does not include program management costs. Program management costs are covered by the local budget.

- The total funding for NTPs and programs assigned to the Provincial People's Committee is the balanced allocation from the Central Budget to support the local budget to fund all program items, objectives, and tasks assigned for implementation in the jurisdiction. The Provincial People's Committee has complete autonomy in integrating and allocating funding for each specific program without waiting for further guidance on funding levels and allocation structures from central ministries and sectors. However, they must follow specialized task guidance from PMAs and expenditure standards according to the joint Circular between the Ministry of Finance and PMAs.

b) Indicators for objectives and tasks of each program to be implemented in the jurisdiction.

- All categories, objectives, and tasks of programs assigned to the Provincial People's Committee shall be budgeted within the total allocated funds for the Provincial People's Committee, and the Provincial People's Committee shall independently allocate specific funds for each program, each objective, and each task; ensuring that all programs listed in the category and all assigned objectives and tasks are funded and implemented effectively, avoiding situations where program funds are exhausted but objectives and tasks are not fulfilled.

- In 2000, some programs were assigned plans to the Provincial People's Committee without clearly defining the objectives or lacking sufficient grounds to assign specific objectives, so the guidance indicators set by the Ministry of Planning and Investment only listed the program categories. However, based on the actual situation of their locality and the professional guidance from the Program Management Agencies, provinces can further specify these objectives and tasks along with funding, particularly those related to reducing the number of people suffering from social diseases and dangerous epidemics, reducing the malnutrition rate among children under five years old, and increasing the percentage of rural households using clean water, children in difficult circumstances being cared for, drug addicts being rehabilitated and treated, etc.

- For projects utilizing investment construction capital, the Provincial People's Committee must ensure full compliance with current state regulations on investment management and construction. For portions of funds sourced from state development credit capital (if applicable), they must adhere to the provisions of the Government as stipulated in Decree No. 43/CP.

c) Steps to implement the plan by the Provincial People's Committee.

- After receiving the plan indicators assigned by the Prime Minister and the Minister of Planning and Investment regarding objectives and tasks, the Provincial People's Committee shall direct the Department of Planning and Investment to coordinate with relevant departments and agencies to advise the Provincial People's Committee on integrating and allocating the total funds according to the program categories, objectives, and tasks assigned for implementation within the province.

- Departments and agencies managing programs have the responsibility to cooperate with the Department of Planning and Investment to propose integration schemes and funding allocation levels for each program based on specific contents and assigned plan indicators for districts, counties, and project owners.

- Based on the proposals from the aforementioned departments and agencies, the Department of Planning and Investment will coordinate with the Department of Finance and Prices to implement integration schemes for programs aimed at poverty reduction and allocate funds for each program according to specific activity contents and projected plan indicators (including both expenditure and targets) for districts, counties, project owners, and submit to the Chairman of the Provincial People's Committee for consideration and decision.

- The basis for projecting funding allocations includes:

+ The list of programs, tasks, and objectives assigned.

+ The availability of allocated funds and additional sources from local budgets and legitimate community contributions.

+ Results of program implementation reports from the previous year.

+ Priority areas, regions, and target groups of the locality.

(For infrastructure construction projects in poor communes as defined by Decision No. 135, implementation shall follow the Circular guidelines issued by the Ministry of Planning and Investment and relevant ministries and sectors).

- Report on implementing the plan.

After assigning plans to district and county people's committees and project owners, the provincial people's committees shall submit the assigned plans (according to form No. 1 attached hereto) to the program management agency, the Ministry of Planning and Investment, and the Ministry of Finance for operational control, auditing, and settlement. The latest submission deadline is February of each year.

- To concentrate the leadership and management of the Provincial People's Committee, for the activities of programs managed by the locality, the Provincial People's Committee shall establish a single Steering Committee for national target programs in the locality and issue its operational regulations. These regulations must clearly define democratic working procedures, especially during the phase of allocating plan indicators, responsibilities and tasks of each member, financial usage rules, etc., adhering to the provisions of Decisions No. 531/TTg and No. 38/2000/QĐ-TTg.

2. Regarding central ministries and sectors.

a) For program management agencies, annual indicators assigned include:

- Total funds and program objectives and tasks to enable program management agencies to monitor, supervise, and manage implementation.

- Funds for projects directly implemented by the program management agency.

- Lists and funds for other programs' objectives and tasks assigned to the program management agency to participate in implementing.

Program management agencies need to implement a responsibility contract system with ministries, sectors, and mass organizations participating in program projects.

b) For central ministries, sectors, and mass organizations (MTOs) participating in programs, annual indicators assigned include:

- Funds (including development investment funds and public service funds) for all programs in which ministries, sectors, and MTOs participate.

- Lists of programs and objectives and tasks of programs in which central ministries, sectors, and MTOs participate.

Based on the total funds and lists of programs, objectives, and tasks assigned, and contracts signed with program management agencies, ministries, sectors, and MTOs will proceed to implement specific projects.

III. ON THE FINANCIAL MECHANISM OF NATIONAL TARGET PROGRAMS

- Funds for implementing National Target Programs are annually balanced within the central government budget, directly provided by the Ministry of Finance to central ministries, agencies, and MTOs to carry out projects managed centrally, and supplemented with targeted funds to local budgets for implementing program tasks managed locally, integrated into local budgets from the beginning of the year to allow the Provincial People's Committee to manage and execute, ensuring that program funds are spent effectively towards their intended goals.

- In addition to support resources from the central level, the Provincial People's Committee must take measures to mobilize local resources including funds, labor force, and other material factors in accordance with the provisions of the law to coordinate with central support for the implementation of the program.

- Program management expenses.

According to Decision No. 38/2000/QĐ-TTg, it is not permitted to allocate program funds for program management work; all funds allocated for the program must be distributed to beneficiaries.

+ At the central level, the operating costs of the Program Steering Committee are included in the regular budget of the program management agency and are allocated as a separate item for implementation.

+ At the local level, the operating costs of the Local Program Steering Committees are covered by the local budget.

- The mechanism for disbursing and settling accounts for program funds shall be carried out according to Circular No. 41/2000/TT-BTC dated May 19, 2000, issued by the Ministry of Finance, guiding financial management for national target programs and programs.

IV. REPORTING AND MONITORING REGIME FOR PROGRAM IMPLEMENTATION

1. Reporting regime.

- The Provincial People's Committee, relevant ministries and sectors, and the State Council at the Central level participating in the program shall report regularly on a monthly, quarterly, and annual basis to the Program Management Agency, the Ministry of Planning and Investment, and the Ministry of Finance regarding the implementation of program objectives, tasks, funds, and immediate difficulties and issues requiring resolution for each specific program (see Model Form 2 attached hereto). The Program Management Agencies shall have the responsibility to compile the implementation status of these units on a monthly, quarterly, and annual basis (see Model Form 3 attached hereto) to report to the Prime Minister, and to send to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government.

- Monthly, along with the economic and social situation report of the locality, there must be a section on the implementation of national target programs.

- Quarterly report submission time: By the fourth week of the last month of the quarter.

- Annual report submission time: No later than December 25th of each year.

2. Organization of inspection, supervision, and evaluation of program implementation.

The Program Management Agencies and the Provincial People's Committee must regularly organize inspections and supervision of program implementation according to the following contents:

- The implementation of program objectives and tasks assigned by the Government.

- The use of central support funds and other program funds.

- The implementation of policies and regulations stipulated for the program.

- Mobilizing community participation in program implementation.

- Democratic practices at various levels, especially at the grassroots level during the program implementation process.

- Overall assessment of program implementation results, identifying good models for replication and addressing errors.

The Program Management Agencies shall submit inspection reports to the Ministry of Planning and Investment, the Ministry of Finance, and the Government Office for reporting.

In certain cases, the Program Management Agencies need to cooperate with the Ministry of Planning and Investment and the Ministry of Finance to inspect program implementation and report to the Prime Minister.

V. REGARDING THE DEVELOPMENT OF THE 2001 PLAN

The deployment of the 2001 plan for national target programs shall be carried out as follows:

1. For programs whose operational period has not ended according to the Prime Minister's decision approving the program, the development of the 2001 plan for such programs shall be implemented in accordance with the guidelines set forth in this document.

2. For programs approved by the Prime Minister's decision that end their operational period in 2000, a comprehensive review and evaluation of the program's implementation from its establishment until the end of 2000 must be organized, reported to the Prime Minister, and sent to the Ministry of Planning and Investment and the Ministry of Finance. The content of the review includes: assessment of the implementation of objectives, tasks, funding mechanisms, and specific results achieved for beneficiaries, and comments on the strengths and weaknesses of the national program management mechanism.

3. The establishment of new national target programs must comply with the provisions of Decision No. 531/TTg dated August 8, 1996, and Joint Circular No. 06-TT/LB-KH-TC dated April 29, 1997, issued by the Ministry of Planning and Investment and the Ministry of Finance, guiding the implementation of Decision No. 531/TTg.

4. The consolidation of resettlement, ethnic minority support, and village cluster center programs with Program 135 shall be carried out according to a separate decision of the Government.

5. Programs previously defined in Circular No. 04/CP-VX dated January 4, 1999, and Decision No. 19/1998/QĐ-TTg dated January 24, 1998, of the Prime Minister, must be implemented in accordance with Article 3 of Decision No. 38/2000/QĐ-TTg dated March 24, 2000, of the Prime Minister.

VI. EFFECTIVE DATE OF IMPLEMENTATION

This circular takes effect from the date of signature. During the implementation, if there are any difficulties, please reflect them to the Ministry of Planning and Investment for consolidation and coordination with relevant ministries and sectors for consideration and resolution.