Circular No. 09/2001/TT-BTC guides the implementation of certain policies and measures for managing the state budget estimate for the year 2001.

CIRCULAR

Guidelines for implementing certain points on policies and measures

Article 1 - Direct the state budget for the year 2001

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BASED on Resolution No. 38/2000/QH10 dated November 28, 2000 of the National Assembly, tenth session, eighth meeting, regarding the state budget estimate for 2001;

BASED on Decision No. 146/2000/QĐ-TTg dated December 22, 2000 of the Prime Minister on the allocation and state budget estimate for 2001;

The Ministry of Finance guides certain points on the policy and measures to manage the state budget for 2001 as follows:

I. BUDGET REVENUE AND EXPENDITURE DISTRIBUTION:

1- In 2001, continue to stabilize sources of revenue, the rate of redistribution, and expenditure tasks between the central budget and local budgets as in 2000, while transferring from the central budget to local budgets some expenditure tasks as follows to meet local management requirements:

1.1- Expenditure to ensure the operation of the state management apparatus for population and family planning.

1.2- Support expenditure for individuals participating in the resistance war and their children affected by chemical toxins used by the United States during the Vietnam War.

1.3- Some target programs not classified as national target programs:

(1)- Physical education and sports program;

(2)- Crime prevention program;

(3)- Drug prevention program;

(4)- Prostitution prevention program;

(5)- Child protection and care program;

(6)- Equipment upgrade target;

(7)- Fisheries support development program;

2- Continue to implement mechanisms to retain some revenue sources for investment in infrastructure and socio-economic development at the local level as in 2000.

Specifically, the revenue from television advertising shall be fully allocated according to the分级分配，管理及报告上述收入使用情况的规定按照财政部2000年1月10日第03/2000/TT-BTC号通知的规定执行。

The classification, management, and reporting of the use of the above revenues shall be carried out in accordance with Point 3 - Part I of Circular No. 06/2000/TT-BTC dated January 18, 2000 of the Ministry of Finance.

3- Regarding rewards for exceeding the budget revenue estimates for local budgets:

3.1- For revenue items shared between the central budget and local government budgets, they shall be implemented strictly in accordance with Circular No. 06/2000/TT-BTC dated January 18, 2000 of the Ministry of Finance and recorded and settled in the state budget for 2001.

3.2- For revenue items eligible for rewards under the State Budget Law:

- For special consumption tax on domestically produced goods (excluding the portion already allocated to local budgets according to the distribution scheme): Reward 100% of the excess revenue over the budget estimate assigned by the Prime Minister.

- For export tax, import tax, and special consumption tax on imported goods: For excess revenue over the budget estimate assigned by the Prime Minister up to 20 billion VND, reward 100%; for excess revenue over 20 billion VND, reward an additional 50% of the excess amount but the total reward shall not exceed 50 billion VND.

- The above rewards shall be used for infrastructure construction, implementation of important and urgent tasks arising at the local level. Rewards for excess revenue shall be recorded and settled in the state budget for 2002.

3.3- The process of applying for rewards shall be conducted as stipulated in Point 6.3 Clause 6 Part IV of Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance.

II. ALLOCATION OF THE STATE BUDGET ESTIMATE FOR 2001 AND GUIDANCE ON IMPLEMENTATION:

1- Regarding the allocation of the state budget estimate for 2001:

Based on the revenue and expenditure levels assigned by the Prime Minister, ministries, central agencies, provinces, centrally-administered cities, and the General Department of Customs need to promptly complete the task of assigning revenue and expenditure tasks to subordinate units and lower levels no later than February 2001.

1.1- Regarding revenue: The revenue assigned by the Prime Minister is the minimum level. To ensure that revenue exceeds the target from the beginning of the year, localities and sectors need to set higher targets (at least a 5% increase compared to the level assigned by the Prime Minister).

1.2- Regarding expenditure:

- Reasonably arrange expenditure tasks, prioritizing funding for development investment, especially counterpart funds, preparatory investment funds, and funds for disaster recovery; expenditure for economic services, particularly for projects related to high-yield and valuable crop and animal seeds, tourism development, trade promotion, agricultural extension, forestry extension, fisheries extension, etc. Ensure expenditures for education and training, science and technology, etc.

- The allocation of the budget estimate for each budget-using unit must be detailed according to at least nine major expenditure categories in the State Budget Manual, including:

Section 100 - Wages.

Section 102 - Allowances.

Section 103 - Scholarships for students.

Section 104 - Bonuses.

Section 110 - Office supplies.

Section 117 - Regular maintenance of fixed assets serving professional work and maintenance and repair of infrastructure projects.

Section 118 - Major repairs of fixed assets serving professional work and infrastructure projects.

Section 119 - Professional expenses of each sector.

Section 145 - Purchase of fixed assets for professional work.

Other expenditure items not included in the above sections shall be recorded under other expenditure items (Section 134).

- Implement the allocation of target programs from 2001 that have been balanced into local budget expenditures to align with actual needs in various fields at the local level.

2- Direct implementation:

2.1- Focus on directing measures to resolve difficulties, promote production and product consumption, encourage business development. On this basis, strengthen revenue collection management from the beginning of the year to ensure correct and full collection of all revenues as prescribed by Law, prevent revenue loss, and combat tax arrears. Coordinate closely with relevant agencies to effectively organize measures against smuggling and commercial fraud. For non-state sectors, review business households, taxable income levels, especially large-scale businesses and specialty product traders, to establish tax levels according to Law ensuring revenue results match the development of business activities in these areas.

2.2- Strictly implement state policies on tax exemptions and reductions to encourage production and contribute to stabilizing the lives of people affected by floods and poor households. Particularly for provinces in the Mekong Delta, urgently consider implementing tax exemptions and reductions for farmers and businesses affected by the 2000 floods. Based on this, report immediately to the Ministry of Finance in January for consideration of support based on actual tax exemptions affecting the budget.

2.3- Review measures for thrift implemented at ministries, sectors, and localities, and develop effective measures to implement the Decree on Thrift and Anti-Waste. For localities, based on central government budget allocation standards, determine local expenditure standards for different spending categories to suit conditions and characteristics of each unit, thereby implementing expenditure quotas (especially for administrative units).

2.4- Seriously implement the public disclosure system of the State Budget in all sectors, levels, and units immediately after the 2001 State Budget estimate is assigned and the 2000 State Budget settlement is approved according to Decision No. 225/1998/QĐ-TTg dated November 20, 1998 of the Prime Minister and Circulars guiding the Ministry of Finance, while strengthening inspection and supervision to promptly rectify violations and enhance the effectiveness of budget fund utilization.

III. ON STATE BUDGET MANAGEMENT:

1- Regarding programs and targets:

1.1- National Target Programs: In 2001, the Government decided to include six national target programs: poverty reduction and job creation program (combining programs 135, settlement, and village center construction); population and family planning program; rural clean water and environmental sanitation program; social disease prevention and dangerous epidemic control program including HIV/AIDS; culture program; education and training program. The distribution of national target programs will be carried out through targeted subsidies (except for the loan capital for job creation which will be distributed through the State Treasury). Localities are responsible for integrating and coordinating these programs to meet their objectives and fit local realities. For Program 135 funds, localities must allocate sufficient funding according to the minimum level set by the Prime Minister.

1.2- Five million hectare forest project: provide targeted subsidies to localities.

1.3- Subsidies for price support, transportation costs, and reserve mobilization funds will be allocated through delegation to localities. Specifically, book price subsidies will be allocated through the Book Distribution Corporation.

1.4- For national target programs transferred to local budgets as mentioned in point 1.3 - Part I, they will be included in the total supplementary amount from the central budget to the local budget. Each specific program will be reflected as follows: sports programs will be accounted for in physical education and sports expenses; crime prevention, drug prevention, prostitution prevention, and child protection programs will be accounted for in social security expenses; health upgrade programs will be accounted for in health expenses; fisheries support programs will be allocated according to the minimum level guided by the Ministry of Finance and accounted for in basic construction investment expenses.

1.5- For national target programs implemented by ministries and central agencies, the Ministry of Finance will directly allocate funds to ministries for implementation and accounting as follows: television programs and radio programs will be accounted for in broadcasting and television expenses; the National Nutrition Action Plan will be accounted for in health expenses.

2- For scientific topics and projects under state-level science and technology programs: the program director (under the ministry managing the program) will coordinate with the Ministry of Finance to allocate program funds and submit them to the Prime Minister for allocation to ministries and central agencies. Based on the allocated budget estimates, ministries and central agencies will allocate and assign budgets to affiliated research units, simultaneously sending the Ministry of Finance and the program director for issuance and management. The Ministry of Finance will directly issue funds to research units. Units will settle accounts with the program director, simultaneously sending the ministry or main agency for consolidation into the settlement of the ministry or central agency. The program director will consolidate and settle accounts with the Ministry of Finance.

3. Regarding the management of construction investment expenditures, the Ministries, sectors, and People's Committees at all levels need to effectively implement measures to address the issues that arose in 2000. Specifically:

(1) Review the list of investment projects, allocate funds only for those with complete procedures, prioritizing allocation for important projects, especially transportation, irrigation, etc. When allocating funds, pay attention to projects with capital from 10 billion VND or more, initially notify 70% of the capital, and after June 30, 2001, if progress is ensured, further allocation will be made; otherwise, reallocate the funds to other projects. Financial agencies at all levels should prioritize advance payment and disbursement of funds for necessary tasks, particularly the repair and construction of dike and irrigation works, flood control, and provision of high-yield and valuable seedlings to ensure timely production.

(2) During the implementation process, closely monitor the progress to ensure compliance with the plan. For projects not meeting the schedule, reallocate funds to projects with faster progress to concentrate on early completion and use, ending the prolonged payment period. In 2001, in accordance with the Resolution of the National Assembly, any increase in central budget revenue will be used to reduce the deficit, settle construction investment debts, and supplement the budget reserve to address unexpected issues arising during the year. No additional funding will be provided for projects exceeding the budget estimate or for additional construction investment expenditure tasks outside the plan.

4. Regarding the issuance of supplementary funds from the central budget to local budgets, to simplify administrative procedures, in 2001, the Ministry of Finance will issue supplementary budget balance figures for localities twice each quarter:

+ The first issuance will be in the first month of the quarter.

+ The second issuance will be in the middle month of the quarter.

5. From the first quarter of 2001, the Ministries, sectors, and levels with plans shall organize a five-year review of the implementation of the State Budget Law. Based on this, propose issues and contents that need to be revised and supplemented to perfect the State Budget Law.

IV. IMPLEMENTATION:

This Circular takes effect from the date of signature. The Ministries, sectors, People's Committees of provinces and centrally-administered cities shall base themselves on this Circular to guide agencies, units, and local authorities at all levels in its implementation./.