Circular No. 107/2008/TT-BTC guiding additional points on the management and operation of the state budget

CIRCULAR

Supplementary guidance on management and operation1. Within fifteen days after the end of each quarter, the project leader who implements expenditure control at the State Treasury shall prepare a report and send it to the supervising agency, concurrently sending it to the financial agency at the same level regarding the disbursement of ODA and preferential loan funds in that quarter, along with the accounting vouchers for state budget revenue and expenditure confirmed by the State Treasury where the transaction takes place.

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Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

Based on Decree No. 221/2013/NĐ-CP dated December 30, 2013 of the Government stipulating the system of applying administrative handling measures for placement in compulsory drug rehabilitation facilities (hereinafter referred to as Decree No. 221/2013/NĐ-CP);

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance provides supplementary guidance on certain aspects of state budget management and operation as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

a. This Circular provides supplementary guidance on certain aspects of state budget management and operation under the conditions of applying the State Budget Management and Treasury Information System (referred to as Tabmis).

b. During the period of implementing Tabmis nationwide (2009-2010); for areas not yet applying Tabmis, the State Treasury still applies the current Treasury Accounting Program (referred to as KTKB) as follows:

- The allocation of local government budgets at the commune level (down to item level); regulations on accounting for budget advance payments; and the allocation, disbursement, payment, and settlement of funds for authorized expenses and projects funded by the central budget shall be carried out in accordance with this Circular.

- For regulations on managing and accounting for state budget expenditures (including those of budgetary units and central government-funded investment projects conducted through the State Treasury at the local level that have not yet applied Tabmis); payment and settlement of expenditures by cash order; management and accounting of budgetary loans and debt repayment; and accounting entries for budget revenue and expenditure related to foreign loans and aid provided by the Government, shall continue to be implemented according to existing regulations until the transition to Tabmis, at which point they must comply with the provisions of this Circular.

2. Explanation of terms

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: Tabmis is an integrated information system deployed at the Ministry of Finance, State Treasuries at all levels, provincial and district financial agencies, and some budgetary units based on Decision No. 432/QĐ-TTg dated April 21, 2003 of the Prime Minister approving the feasibility report of the Public Financial Management Reform Project.

b. Entities participating in Tabmis are entities connected and operating on Tabmis.

c. Entering the budget estimate into Tabmis refers to the process where financial agencies, State Treasuries (for commune-level budgets), primary and secondary budgetary units participating in Tabmis, based on the decision allocating and distributing the budget estimates by the competent authority, enter budget data into Tabmis and are responsible for the accuracy of the budget data in Tabmis.

d. Budget estimate data file is an electronic file containing budget estimates of primary and secondary budgetary units (in cases where primary budgetary units are authorized to allocate and distribute budget estimates) allocated and distributed to budgetary using units and direct investment projects. Primary budgetary units not participating in Tabmis are responsible for creating budget estimate data files according to prescribed formats and sending them to the same-level financial agency.

) Vehicle registration certificate or certificate of vehicle deregistration or export certificate or ownership certificate of the vehicle issued by the competent authority of the exporting country or other documents of equivalent legal value: one certified Vietnamese translation from the original for cases of temporary import of movable property vehicles; Updating the budget estimate into Tabmis refers to the process where financial agencies update budget data into Tabmis based on budget estimate data files submitted by primary budgetary units.

e. Officializing the budget estimate in Tabmis refers to the process where financial agencies review and approve budget data entered into Tabmis by participating primary and secondary budgetary units or updated from budget estimate data files submitted by primary budgetary units.

g. Provisional budget estimate is the budget estimate temporarily allocated by financial agencies and the State Treasury according to Article 45 of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget and the guidance of the Ministry of Finance in cases where, at the beginning of the fiscal year, the budget estimate and the budget allocation plan have not been decided by the competent state authorities.

II. SPECIFIC PROVISIONS

1. On entering the state budget estimate into Tabmis

a. Types of budget estimates managed in Tabmis include:

- Central government, provincial, district, and commune-level budget estimates for various sectors decided annually by the National Assembly and People's Councils.

- State budget estimates assigned or advanced to primary budgetary units and investment projects by the Prime Minister (for the central budget) or Provincial People's Committees (for local budgets).

- State budget estimates allocated and distributed by primary budgetary units to budgetary using units and investment projects (including those advanced for the next fiscal year).

b. The state budget estimate in Tabmis serves as a basis for financial agencies and the State Treasury to control expenditures and make payments as prescribed. When making payments and controlling expenditures, the State Treasury branch handling transactions must check and verify; if discrepancies are found between the budget estimates allocated to budgetary using units and investment projects according to the competent authority's decisions (budget estimates sent by the units) and those in Tabmis, they must report to the same-level financial agency (for budgetary units at the same level) or to the higher-level State Treasury (for budgetary units at a higher level) for consolidation and reporting to the same-level financial agency for examination and handling according to regulations.

c. Responsibilities for entering the state budget estimate into Tabmis:

(1) For budget estimates decided by the National Assembly, provincial and district People's Councils, and budget estimates assigned or advanced for the next fiscal year by the Prime Minister, Provincial People's Committees for primary budgetary units and investment projects (at the local level): based on the National Assembly's and People's Councils' resolutions on the state budget, decisions on allocating or advancing the next fiscal year's budget estimates by the Prime Minister and Provincial People's Committees; the Ministry of Finance (for the central budget), Provincial Departments of Finance (for provincial budgets), and District Financial Planning Offices (for district budgets) shall enter their respective budget estimates into Tabmis.

(2) For budget estimates and advances for the next fiscal year allocated and distributed by primary budgetary units to budgetary using units and investment projects:

- For budget estimates allocated at the beginning of the year:

After submitting to the same-level financial agency the budget allocation plan for examination in accordance with regulations, in cases where the first-level budget entity has joined Tabmis, such entity shall enter the allocation plan into Tabmis; in cases where it has not yet joined Tabmis, the first-level budget entity shall attach a data file on the allocation plan created according to the prescribed form for the financial agency to update into Tabmis. The Ministry of Finance will issue separate guidance on the content of the forms and the method of creating data files.

The financial agency shall examine the allocation plan of the first-level budget entity in accordance with regulations; at the same time, based on the examination results, the financial agency shall review and transfer the budget allocation plan data (which has been entered into Tabmis by the first-level budget entity or updated into Tabmis by the financial agency from the data file sent by the first-level budget entity) into formal budget data in Tabmis for cases where the allocation has been made in accordance with regulations, serving as the basis for payment and expenditure control.

For cases where there is no agreement reached by the financial agency, the first-level budget entity shall adjust the allocation plan in accordance with regulations or report to the competent authority for consideration and decision in cases where there is disagreement with the adjustment requirements of the financial agency. After making the adjustment to the allocation plan, if the first-level budget entity has joined Tabmis, it shall simultaneously adjust the allocation plan already entered into Tabmis; in cases where it has not yet joined Tabmis, the first-level budget entity shall adjust the data file on the allocation plan and send it to the same-level financial agency for updating the adjustment in Tabmis. Based on this, the financial agency shall review and transfer it into formal budget data in Tabmis.

In cases where authorization is granted to second-level budget entities to allocate and assign budgets in accordance with point 1.1, clause 1, section IV of Circular No. 59/2003/TT-BTC dated June 23, 2003, issued by the Ministry of Finance to guide the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government, the entry of expenditure budgets into Tabmis shall be carried out as follows:

After allocating and assigning budgets to budget-using units, if the second-level budget entity has joined Tabmis, the second-level budget entity shall be responsible for entering the budget into Tabmis.

In cases where the second-level budget entity has not yet joined Tabmis, the first-level budget entity shall be responsible for entering the budget into Tabmis (for first-level budget entities that have joined Tabmis) or creating a budget data file according to the prescribed form (for first-level budget entities that have not yet joined Tabmis) and sending it to the same-level financial agency for updating into Tabmis.

Based on the request of the first-level budget entity, the financial agency shall review and transfer the budget data which has been entered into Tabmis by the first-level and second-level budget entities or updated into Tabmis by the financial agency from the data file sent by the first-level budget entity, into formal budget data in Tabmis.

In cases where the first-level budget entity is authorized by the competent authority to allocate additional budget or advance budget for the next fiscal year to implement emerging tasks; after completing the allocation and assignment of budgets in accordance with regulations, the first-level budget entity shall be responsible for entering the budget into Tabmis (for first-level budget entities that have joined Tabmis) or creating a budget data file according to the prescribed form (for first-level budget entities that have not yet joined Tabmis) and sending it to the same-level financial agency for updating into Tabmis.

Based on the expenditure budget allocated by the first-level budget entity and entered into Tabmis or updated into Tabmis by the financial agency from the budget data file sent by the first-level budget entity, and the request of the first-level budget entity, the financial agency shall transfer it into formal budget data in Tabmis.

In cases where adjustments need to be made to the allocated budget for subordinate budget entities during the year; if the total amount and detailed items within each spending category remain unchanged and there is no adjustment from non-self-financing funds to self-financing funds or from non-recurring funds to recurring funds, the first-level budget entity does not need to seek approval from the same-level financial agency before deciding on the adjustment; if changes occur in the total amount and detailed items, it must be reported to the competent authority for decision; in cases where the adjustment involves moving from non-self-financing funds to self-financing funds or from non-recurring funds to recurring funds, the agreement of the financial agency must be obtained before implementing the adjustment. After making the adjustment in accordance with regulations, the first-level budget entity shall submit to the same-level financial agency for updating the budget adjustment in Tabmis, and simultaneously send it to the State Treasury where transactions take place as the basis for expenditure control, disbursement, and payment.

Based on the adjustment decision of the first-level budget entity, the financial agency shall check the budget balance and make adjustments in Tabmis.

In cases where provisional funding is provided at the beginning of the fiscal year in accordance with Article 45 of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government and the regulations of the Ministry of Finance (specifically for the Ministry of National Defense and the Ministry of Public Security, provisional funding is provided from December of the previous year); when providing provisional funding, the financial agency (for expenditures by cash order) and the State Treasury (for expenditures through budget withdrawal) must enter the provisional budget into Tabmis and recover it after the official budget expenditure has been assigned.

(3) As for the commune-level budget, based on the commune-level budget revenue and expenditure forecast and the commune-level budget allocation plan decided by the People's Council, the People's Committee at the commune level shall allocate the commune-level budget, including detailed allocation of regular expenditure to the types and items of the State Budget Classification as prescribed, and simultaneously send one copy to the State Treasury where transactions take place as the basis for entering into Tabmis and payment, expenditure control in accordance with regulations. The State Treasury where transactions take place shall verify the legality and validity of the budget plan sent by the People's Committee at the commune level before entering it into Tabmis.

2. Regarding the accounting of provisional budget advances

When temporarily advancing the state budget, the State Treasury shall record and account for such advances in accordance with the Accounting System for the State Budget and the Treasury's business operations, and the State Budget Item List; where the nature of expenditure is clear and can be detailed to sub-items, it must be recorded in detail to sub-items; in cases where the nature of expenditure is unclear and cannot be determined at the sub-item level, the advance shall be recorded under another sub-item of the item; when settling temporary advances, accounting shall be done according to the actual sub-items incurred.

3. Regarding payment and settlement for expenditures made by budget cash orders from the central government and provincial and district-level budgets.

a. Principles of budget control:

- For expenditures made by cash orders issued within the budget (including supplementary budgets during the year) for administrative agencies, public service units, and other budgetary units, budget control shall be implemented through the Tabmis system; when allocating the budget, the first-level budgetary unit must allocate detailed budgets to the budget users as the basis for entering into the Tabmis system, and financial authorities and the State Treasury at the same level shall control the budget when disbursing and settling payments to beneficiaries.

- For expenditures made by cash orders to implement direct foreign aid tasks; expenditures for enterprises, economic and social organizations that do not have regular relations with the budget, and urgent and critical expenditures made by cash orders according to decisions of competent authorities: budget control shall not be implemented through the Tabmis system when disbursing, settling, and paying to beneficiaries.

b. Payment and settlement procedures for expenditures made by cash orders:

- Based on the allocated state budget and the requirements to fulfill tasks, the financial authority shall check, control, issue cash orders, and enter them into the Tabmis system to request the State Treasury at the same level to withdraw funds for payment and settlement to beneficiaries as prescribed.

- The State Treasury is responsible for checking the legality and validity of the cash orders issued by the financial authority in the Tabmis system; based on the content of the cash orders, it shall withdraw funds for payment and settlement to beneficiaries within the time frame stipulated by regulations; simultaneously, it shall print and retain the recovery documents and notify the unit. In case the documents are invalid, the State Treasury must inform the financial authority no later than one day after receiving the documents.

4. Regarding the allocation, disbursement, settlement, and finalization of expenditures for entrusted funds.

- Where a higher-level state management agency entrusts a lower-level state management agency to perform tasks within its functions, it must allocate funding to the lower level to carry out those tasks.

- When allocating and entrusting funds, the entrusting agency treats the entrusted lower-level agency as a special budgetary unit and allocates and entrusts the budget as it would for directly subordinate budgetary units; at the same time, it informs the People's Committee at the same level as the entrusted agency to coordinate and guide the management and use of entrusted funds for their intended purposes in accordance with regulations.

Where ministries simultaneously entrust agencies and units at the provincial and district levels in localities, if there are no conditions to directly allocate and entrust budgets to district-level units, they may allocate to provincial-level agencies and entrust these agencies to further allocate and entrust budgets to district-level units.

- Payments and settlements of entrusted funds shall be carried out in the form of withdrawing the budget if the entrustment is for regular funds, and disbursement and settlement of capital investment if the entrustment is for capital investment. When disbursing and settling entrusted funds, they shall be recorded in the program and budget of the entrusting unit.

- The State Treasury and the entrusted unit shall separately account for and report on expenditures related to entrusted funds. The entrusted unit shall directly report the finalization of entrusted funds to the entrusting unit; the entrusting unit shall review and consolidate this into its own budget finalization according to regulations.

5. Regarding the management and accounting of loans and debt repayments of the central budget, funds raised for investment as provided for in Clause 3, Article 8 of the State Budget Law, and debt repayments of provincial budgets.

a. Management and accounting of loans of the central budget and funds raised for investment by provincial budgets:

- Domestic and foreign loans of the central budget and funds raised for investment by provincial budgets as stipulated in Clause 3, Article 8 of the State Budget Law are debts payable, managed and accounted for on the payable accounts of budgets at all levels.

+ For price differences between bond issuance prices and face values and discount amounts, they are tracked on separate accounts; at the end of the year, any surplus on the credit side will be considered as budget revenue, while any surplus on the debit side will be considered as budget expenditure.

+ For foreign currency loans, they are tracked and recorded in Vietnamese dong, while also being tracked and accounted for in original currency. Monthly exchange rate adjustments are made according to the regulations of the Ministry of Finance. At the beginning of each month, the State Treasury adjusts the balance of foreign currency loans on the payable accounts of all levels of budget to the exchange rate specified by the Ministry of Finance; simultaneously, any resulting exchange rate differences (if any) due to revaluation of the balance are recorded and tracked separately on the exchange rate difference account (not recorded in budget revenue or expenditure) to ensure budget revenue and expenditure balance according to the budget exchange rate at the time of occurrence.

- For foreign loans used for projects under the cash receipt and payment method, based on the disbursement notification from the financier and relevant documents and vouchers, the state budget accounting shall be conducted as prescribed in Clause 7, Section II of this Circular.

b. Management and accounting of debt repayment expenditures:

- Expenditures for interest and fees (if any) on domestic and foreign loans of the budget: shall be recorded in the corresponding level of budget expenditure.

- For principal repayment amounts, including those raised for provincial budget investment as stipulated in Clause 3, Article 8 of the State Budget Law: record the reduction of debt on the corresponding payable accounts of various levels of budgets, but still aggregate and report them collectively in the state budget expenditures to ensure budget balance in accordance with the State Budget Law and the budget approved by the National Assembly and People's Councils.

6. On central government debt payments:

a. Domestic debt payments:

- For Government bonds (including retail sales, auctions, guarantees, large-scale issuances, special bonds), Treasury bills, national construction bonds; issuance fees for auctioned bonds through the securities market and bond issuance guarantees; settlement fees for securities depository centers; do not control the budget estimate for each payment and repayment, but must remain within the total annual budget estimate for central government debt payments decided by the National Assembly. In cases where debt repayment exceeds the approved annual central government debt payment budget, the State Treasury shall report to the Ministry of Finance for consideration and decision.

Based on the requirements, the State Treasury shall disburse funds for settlement, simultaneously recording the reduction of borrowed debt (for principal repayments) and expenditure (for interest and fee payments) of the central government as stipulated in Point b, Clause 5, Section II of this Circular.

- For issuance and settlement fees for domestic bonds and national construction bonds issued directly through the Treasury system (retail sales), the State Treasury shall benefit according to regulations, and the Ministry of Finance shall allocate the budget estimate and issue payment orders in accordance with current regulations.

- For other domestic debts directly borrowed and managed by the Ministry of Finance, payment shall be made according to current regulations using payment orders from the Ministry of Finance. Based on these payment orders, the State Treasury shall disburse funds for settlement and repayment, simultaneously recording the reduction of borrowed debt (for principal repayments) and expenditure (for interest and fee payments) of the central government as stipulated in Point b, Clause 5, Section II of this Circular.

b. Foreign debt payments:

- Do not control the budget estimate for each foreign debt payment, but must remain within the total annual budget estimate for central government foreign debt payments decided by the National Assembly.

- Based on payment requirements, seven working days before the due date for repayment, the Ministry of Finance shall issue payment orders along with the repayment schedule and related documents (if any) to the State Treasury for recording in Tabmis, including the reduction of borrowed debt and expenditure of the central government as stipulated in Point b, Clause 5, Section II of this Circular, and promptly disbursing funds for settlement and repayment to beneficiaries in accordance with regulations.

7. On the accounting entries for receipts and expenditures of the state budget for foreign loans and aid directly funded by the Government for projects.

Immediately upon receiving notifications of foreign fund disbursements for projects from sponsors and related documents, the Ministry of Finance shall issue accounting receipt and expenditure orders sent to the State Treasury to record in the state budget in a timely manner, including recording state budget revenue if they are non-repayable aid, and recording debt tracking on payable accounts if they are loans as prescribed; simultaneously, recording state budget expenditure entries for projects when all conditions for such entries are met as stipulated in Decision No. 19/2007/QĐ-BTC dated March 27, 2007 of the Minister of Finance on the accounting system for state budget receipts and expenditures for foreign loans and aid directly funded by the Government; in cases where conditions for state budget expenditure entries have not been met, track on provisional accounts for management and record in state budget expenditures once all conditions for expenditure are met as prescribed.

III. IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette and is applicable from the 2009 fiscal year; previous provisions contrary to this Circular are no longer effective.

Ministries, ministerial-level agencies, agencies under the Government, central-level agencies, People's Committees of provinces and centrally-administered cities, and the State Treasury are responsible for guiding subordinate units and lower levels to implement it.

During the implementation phase of Tabmis, the State Treasury is responsible for guiding the organization of implementation of the state budget accounting system and treasury operations applicable to Tabmis; implementing data conversion from existing Treasury information technology systems to Tabmis, ensuring safety, effectiveness, and timely provision of information for budget management.

During implementation, if there are difficulties, please promptly reflect them to the Ministry of Finance for coordination and resolution./.