Joint Circular No. 11/2012/TTLT-BNNPTNT-BTC-BKHĐT guides the management and use of state budget funds for the Breeding Development Program for agricultural, forestry, livestock, and aquatic species until 2020.

JOINT CIRCULAR

Pursuant to Decree No. 01/2008/NĐ-CP dated January 3, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development; Decree No. 75/2009/NĐ-CP dated September 10, 2009 of the Government amending Article 3 of Decree No. 01/2008/NĐ-CP dated January 3, 2008 of the Government; Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

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Pursuant to Decision No. 60/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister promulgating principles, criteria, and allocation standards for development investment capital from the state budget for the period 2011-2015;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 116/2008/NĐ-CP dated November 14, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment;

Implementing Decision No. 2194/QĐ-TTg dated December 25, 2009 of the Prime Minister approving the Project on Developing Plant, Forestry, Livestock, and Aquatic Seedlings until 2020;

The Ministry of Agriculture and Rural Development, the Ministry of Finance, and the Ministry of Planning and Investment jointly issue guidelines for the management and use of state budget funds allocated to the Project on Developing Plant, Forestry, Livestock, and Aquatic Seedlings until 2020, as follows:

1. This circular provides detailed guidance on the contents related to planning, investment, and investment support from the state budget, credit, land use fee, and water resource fee to implement Decision No. 2194/QĐ-TTg dated December 25, 2009 of

2. Funds for implementing the seedling project managed directly by the Ministry of Agriculture and Rural Development and other central ministries and agencies shall be guaranteed by the central budget for research and production of major plant, forestry, livestock, and aquatic seedlings nationwide and regionally.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

3. Funds for implementing the seedling project managed directly by provincial-level authorities shall be balanced from local budgets and supported by the central budget for research and production of major plant, forestry, livestock, and aquatic seedlings with comparative advantages at the local level.

1. The subjects are units assigned to perform seven tasks from Clause 1 to Clause 7, Section III, Decision No. 2194/QĐ-TTg dated December 25, 2009 of

a) At the central level: Agencies, units, enterprises with the function of managing, researching, and producing seeds under central ministries and agencies.

Article 2. Applicability

b) At the local level: Seed centers; agencies, units, enterprises, cooperatives, cooperative groups, individuals with the function of managing, researching, and producing seeds.

2. Subjects according to types of seeds include: Plant, forestry, livestock, and aquatic seeds prioritized for investment and investment support as stipulated in Clause 8, Section III, Decision No. 2194/QĐ-TTg.

Agencies, units, enterprises, cooperatives, cooperative groups, and individuals must use project funds for their intended purposes, in accordance with regulations, and be subject to inspection and supervision by competent authorities; they must settle accounts for funds used annually and upon completion of projects in accordance with current regulations.

1. Specialized terms regarding seeds used in this circular are defined as follows:

a) Regarding original seeds; primary seedlings for industrial crops, perennial fruit trees, and forestry; primary orchards for industrial crops, perennial fruit trees, and forestry; super foundation seeds; foundation seeds; forestry seed gardens; seed forests; rejuvenation of seeds; testing of seeds; examination of seeds; certification of new seeds as stipulated in Article 3, Chapter I of the Seed Law on Plants adopted by the Standing Committee of the National Assembly in 2004 (No. 15/2004/PL-UBTVQH11 dated March 24, 2004).

Article 3. Explanation of Terms

b) Regarding inbred herds; grandparent herds; parent herds; nucleus herds used in large-scale livestock breeding; rare aquatic species; testing of seeds; examination of seeds; certification of new seeds as stipulated in Article 3, Chapter I of the Seed Law on Livestock adopted by the Standing Committee of the National Assembly in 2004 (No. 16/2004/PL-UBTVQH11 dated March 24, 2004).

c) Original seeds for aquatic species (also known as pure strains) refer to newly selected strains within the country or imported strains with potential for widespread application in production.

2. Classification of short-cycle and long-cycle crops and livestock prioritized for investment in Clause 8, Section III, Decision No. 2194/QĐ-TTg is as follows:

a) Short-cycle crops and livestock include: Rice, corn, peanuts, soybeans, sugar cane, pineapple, root vegetables, vegetables, beans, flowers, mushrooms, grasses, and animal feed crops, poultry, bees, silkworms.

b) Long-cycle crops and livestock include: Perennial fruit trees, coffee, cocoa, rubber, tea, mulberry, pigs, cattle, buffalo, goats, sheep, rare animals, large timber trees, small timber trees, non-timber forest products.

c) For aquatic species, classification based on production cycles is arranged by the Ministry of Agriculture and Rural Development and provincial People's Committees within each project.

3. The concept of concentrated seed production areas applying advanced technology (only applicable in crop cultivation and aquaculture) used in this circular refers to main seed production sites in regions supplying seeds to multiple locations, with a scale of 10 hectares or more. These sites apply advanced seed production processes to produce high-yield, high-quality, low-cost products.

PLANNING THE SYSTEM FOR RESEARCH, TRANSFER, PRODUCTION, AND SUPPLY OF SEEDS

3. The concept of concentrated seed production zones applying high technology (only applicable in crop cultivation and aquaculture sectors) referred to in this Circular is understood to be primary seed production sites in the region supplying seeds to multiple localities, with a scale of 10 hectares or more. These sites apply advanced seed production processes to produce products with high yield, quality, and low cost.

Chapter II

PLAN FOR THE RESEARCH, TRANSFER, PRODUCTION AND SUPPLY SYSTEM OF SEEDSSEED SUPPLY

Article 4. Responsibilities for planning the system of research, transfer, production, and supply of seeds

1. The Ministry of Agriculture and Rural Development shall cooperate with relevant ministries and sectors to develop plans for the system of research, transfer, production, and supply of agricultural, forestry, livestock, and aquatic seedlings nationwide.

2. Provincial People's Committees under the central government shall develop plans for the system of research, transfer, production, and supply of agricultural, forestry, livestock, and aquatic seedlings within their respective jurisdictions in accordance with the overall national plan approved by the Ministry of Agriculture and Rural Development.

Article 5. Procedures and contents of planning

1. Planning procedures: The establishment, review, approval, and management of planning shall be carried out in accordance with Decree No. 92/2006/NĐ-CP dated September 7, 2006, and Decree No. 04/2008/NĐ-CP dated January 11, 2008, of the Government regarding the establishment, approval, and management of comprehensive economic and social development planning.

2. The main content of the plan includes evaluating the current status of the system of research, transfer, production, and supply of seeds; proposing reasonable allocation schemes and investment solutions to effectively implement the objectives set forth in Section II of Decision No. 2194/QĐ-TTg.

Article 6. Budget for project planning

The budget for planning projects on the system of research, transfer, production, and supply of seeds shall be allocated from the state budget according to the current classification.

Chapter III

INVESTMENT POLICIES AND STATE INVESTMENT SUPPORT

Article 7. Contents of Investment and State Investment Support for the Seed Project:

1. Central Budget:

1. 1. Operating funds:

1. 1.1. Scientific operating funds: - Research and selection creation; trial production, testing, inspection, and regionalization of new seed varieties; restoration and improvement of good characteristics in aquaculture; research on production, processing, and preservation techniques for seeds. - Introduction of genetic resources, collection, and storage of genetic resources for agricultural, forestry, livestock, and aquatic plants.

1. 1.2. Economic operating funds:

a) Central budget investment: - Maintaining original seed stock and post-construction period care (for agriculture, it is the mother plant garden; for forestry, it is the seedling forest and seedling garden; for animal husbandry, it is the foundation herd and parent stock; for aquaculture, it is the original stock already invested in previous stages) to serve the production of subsequent seed levels; Importing original seed stock and parent stock (or purchasing domestically) for crop, livestock, and short-term aquatic and marine species that are not yet available or insufficiently supplied domestically; Importing seed production technology; Purchasing copyrights for newly developed domestic seed varieties; Completing seed production, processing, and preservation procedures; Building demonstration models of seed production technology recognized by competent authorities; Hiring foreign experts when complex technologies requiring high expertise cannot be handled by domestic experts; Short-term training for domestic and international seed researchers and producers according to approved projects.

- Expanding and utilizing gene pools for research and seed production according to approved projects (excluding scientific research activities mentioned in sub-item 1.1.1 above).

- Strengthening quality control of seeds by state management agencies: Completing seed databases; Inspecting and checking seed quality; Publishing materials for seed management; Short-term training for central and provincial seed management officials.

- Expenditures for the Seed Project Steering Committee.

b) Central budget support for one-time seed production investment:

- For crop cultivation: Supporting up to 50% of the cost of producing original seed stock and mother plant stock (or equivalent); super hybrid seed stock and parent stock used for F1 hybrid seed production. Supporting up to 30% of the cost of producing hybrid seed stock for certain types of seeds encouraged for development.

- For animal husbandry: Supporting up to 50% of the cost of producing foundation herds and parent stock. Supporting up to 30% of the cost of producing parent stock for small ruminants; original stock for bees and silkworms.

- For forestry: Supporting up to 50% of the cost of producing original seed stock and mother plant stock.

- For aquaculture: Supporting up to 50% of the cost of producing parent stock for clean disease shrimp, pangasius, and other key aquatic and marine species. Supporting up to 30% of the cost of producing hybrid seed stock for certain types of seeds encouraged for development.

The selection of hybrid seeds encouraged for development and key aquatic and marine species shall be decided by the Minister of Agriculture and Rural Development.

1. 2. Construction funds:

1. 2.1. For public institutions and units: The central budget shall invest in implementing project contents approved by competent authorities, including:

- Costs for constructing facilities serving research, storage, management, production, processing, and preservation of seeds.

- Importing (or purchasing domestically) new seed varieties for long-term crops and livestock, including forestry which also includes harvesting costs if applicable.

- Planting and caring for long-term mother plant gardens in agriculture; planting and caring for seedling forests and gardens in forestry; breeding and maintaining aquatic and marine seed varieties; breeding and adapting imported or domestically purchased seed varieties within the construction fund provisions above.

1. 2.2. For enterprises:

The central budget shall support infrastructure construction (transportation, water management, waste treatment) at concentrated seed production sites applying advanced technology, with a maximum of 50% of the cost for these purposes.

2. Local budget:

2. 1. For public institutions and units, Seed Centers:

Local budgets shall invest and provide investment support from operating funds and construction funds as stipulated in points 1.1 and sub-item 1.2.1, point 1.2, clause 1 of this Article.

2. 2. For enterprises, cooperatives, cooperative groups, individuals:

2. 2.1. Operating funds:

a) Scientific operating funds:

- Research and selection; experimental production, testing, inspection, and regionalization of new varieties; rejuvenation and multiplication of varieties with good characteristics; research on production processes, processing, and preservation of seeds;

- Introduction of genetic resources, collection, and storage of genetic resources for agricultural, forestry, livestock, and aquatic plants.

b) Economic public expenditure funds:

- Local budget investment:

+ Maintaining original seed stocks, post-establishment care for primary seed orchards for agriculture; for forestry, it is seed forests and seed nurseries; for animal husbandry, it is ancestral and grandparent stock, nucleus herds, and original seed herds; for aquaculture, it is original stocks that have been invested in previous stages to serve the production of subsequent seed stages.

+ Completing seed production, processing, and preservation procedures; Establishing demonstration models of seed production technology recognized by competent authorities; Short-term training for researchers and seed producers both domestically and internationally according to projects approved by competent authorities.

- Local budget supporting investment once for seed production:

+ For crop cultivation: Support up to 50% of the cost of producing original seeds, primary seeds (or equivalent); super parent seeds, parent seeds used to produce F1 hybrid seeds. Support up to 30% of the cost of producing hybrid seeds for certain types of seeds that need encouragement for development.

+ For animal husbandry: Support up to 50% of the cost of producing ancestral and grandparent stock. Support up to 30% of the cost of producing parent stock for small ruminants; original stock for bees and silkworms.

+ For forestry: Support up to 50% of the cost of producing original seeds, primary seeds.

+ For aquaculture: Support up to 50% of the cost of producing parent stock for clean disease shrimp, pangasius, and other key aquatic species. Support up to 30% of the cost of producing hybrid seeds for certain types of seeds that need encouragement for development.

The selection of hybrid seeds that need encouragement for development and key local aquatic species shall be decided by the People's Committee of the province.

2. 2.2. Construction fund sources:

a) Regarding conditions for state budget investment and support as stipulated in Clause 1, Article 9 of this Circular.

b) Local budget support for investment: Building infrastructure (transportation, irrigation, waste treatment) at concentrated seed production sites applying high technology, with a maximum not exceeding 50% of the cost to implement these contents.

c) Regarding procedures and documents:

- Enterprises, cooperatives, joint ventures, and individuals conducting research, selection, and seed production must submit a document to the Department of Agriculture and Rural Development of the provincial or centrally-administered city detailing the name of the unit or individual, current land scale, financial indicators, annual seed production volume, and items requesting state support.

- Department of Agriculture and Rural Development: Based on the application and conditions for state investment and support as stipulated in Clause 1, Article 9 of this Circular, determine units and individuals meeting the criteria; submit to the Provincial People's Committee for approval to establish a project; guide the investor in project development; coordinate with relevant departments to organize reviews.

- Department of Planning and Investment, in collaboration with the Department of Agriculture and Rural Development, the Department of Finance, and related agencies, organizes reviews; based on the review report of the Review Board, consider and submit to the Provincial People's Committee for approval of the support plan for the project.

- The Provincial People's Committee approves the content of investment support and the level of investment support based on the local budget capacity; assign the Department of Planning and Investment and the Department of Finance to ensure balanced funding according to the approved project; assign the Department of Agriculture and Rural Development to guide project sponsors to use funds for their intended purposes.

d) The level of central government budget support for construction investment for localities to implement the Seed Project shall be carried out according to Clause 4, Section IV, Decision No. 60/2010/QĐ-TTg dated September 30, 2010 of

Article 8. Contents and Levels of Expenditure from Economic Public Service Funds

Organizations and individuals using state budget funds for the Project on seed varieties must implement according to the current financial expenditure standards and regulations issued by competent state agencies. This Circular supplements guidance on the following contents of expenditure:

1. Support for production cost expenses: The state budget supports labor and material costs for producing seed varieties based on economic and technical norms approved by the Ministry of Agriculture and Rural Development and provincial People's Committees (excluding equipment and factory buildings within the total project cost).

2. Short-term training expenditures both domestically and internationally for seed-related personnel:

2.1 Domestic Training

a) Training and capacity building targets: Central and local seed management officials; researchers and project implementation staff of the project investors; local officials and direct workers participating in project activities.

b) Content of expenditure:

Expenditures for printing teaching materials and textbooks directly serving classes; office supplies; drinking water; renting transportation, conference halls, equipment serving classes; practical class materials (if any); instructor and practical guide instructor allowances for technical operations; travel, accommodation, and translation fees (if any); Accommodation, food, and travel expenses for trainees not receiving government salary according to bus ticket prices; other expenditures: Opening and closing ceremonies, certificate printing, medical expenses for the class.

c) Amount of expenditure:

- Instructor and practical guide instructor allowances for technical operations: Implemented according to Decision No. 1956/QD-TTg dated November 7, 2009 of the Prime Minister approving the "Vocational Training Program for Rural Laborers until 2020" and guiding documents.

The Ministry of Agriculture stipulates the training duration and payment levels for instructors and practical guide instructors for technical operations accordingly.

- Trainee expenditures: All trainees are supported with 100% learning material costs, and non-government-salaried trainees are supported with meal expenses up to a maximum of VND 50,000 per person per day of actual study.

2.2 Short-term training abroad for research, management, and seed production personnel:

Implemented according to Circular No. 91/2005/TT-BTC dated October 18, 2005 of the Ministry of Finance regarding travel expense regulations for state officials and civil servants traveling abroad for short-term assignments funded by the state budget.

3. Regarding hiring experts:

Based on the necessity of implementing tasks and available budget, the head of the unit assigned as the project investor decides:

- Hiring domestic or foreign experts;

- Hiring forms (by time or by product) appropriately;

- Actual contract payment levels ensuring quality and effectiveness (for hiring experts at or above USD 1,000/person/month, agreement from the respective Ministry's Minister for projects under their management; Provincial People's Committee Chairman for projects under local management is required).

Article 9. Conditions for State Budget Investment and Support

1. Conditions for state budget investment and support from construction capital funds:

a) Units assigned to carry out tasks from Clause 1 to Clause 7, Section III, Article 1, Decision No. 2194/QĐ-TTg dated December 25, 2009 of

b) Units specified in Point a, Clause 1 of this Article must implement projects developing priority seed varieties of agricultural, forestry, livestock, and aquatic species according to Clause 8, Section III, Article 1, Decision No. 2194/QĐ-TTg dated December 25, 2009 of

c) Projects must be included in the list of seed projects in the planning system for research, production, and supply of agricultural, forestry, livestock, and aquatic seed varieties approved by the Ministry of Agriculture and Rural Development and provincial People's Committees. For projects constructing concentrated seed production bases applying high technology, there must be a professional agreement with the Ministry of Agriculture and Rural Development before approval.

d) Investment projects must meet industry standards for agriculture, forestry, and aquaculture issued by the Ministry of Agriculture and Rural Development.

đ) Seed variety projects must have complete investment procedures.

e) Investors must commit to providing matching capital to implement approved project components (outside state budget support). In cases where bank loans are used to contribute to project implementation, agreement from the lending bank is required. The state budget will support according to the project's progress within the approved state budget estimate range.

g) Investment items in the project using construction capital that have not been invested in or supported by the state from the state budget.

2. Conditions for state budget support for seed production from economic public service funds:

a) Projects approved by competent authorities for seed production within the planning system for research, production, and supply of seeds approved by the Ministry of Agriculture and Rural Development and provincial People's Committees.

b) Projects have implementation locations for seed production (locations managed and used by the investor and commitments from management and usage units participating in project implementation at those locations).

c) Commitment to ensure funding sources for organizations and individuals to implement original seed production (outside state budget support).

d) State budget support according to the project's progress within the approved state budget estimate range.

đ) Not having received any support from state funds.

Article 10. Recovery of State Budget Capital Investment

1. For economic public service funds:

1.1. Level of recovery:

a) Regarding the completion of production technology processes for seed varieties:

- The output of this content is the production technology process; in practice, some seed varieties when completing the production technology process have products for sale, while others do not. The Ministry of Agriculture and Rural Development and the People's Committee of the province shall specify the types of crop and livestock seeds that, upon implementing the content of completing the production technology process for seed varieties, have recoverable products.

- For seed projects that complete the production technology process with recoverable products; the recovered products are sold at market prices, with 70% of their value being remitted to the state budget, and the remaining 30% of their value retained to supplement the Public Service Development Fund to strengthen the material infrastructure of the unit. For recovered products without market selling prices, the Ministry of Agriculture and Rural Development and the People's Committee of the province shall specify the selling price to implement the above provisions.

b) Regarding the establishment of demonstration models for seed production technology: The level of recovery remitted to the state budget is 30% of the state budget capital invested in implementing this content.

c) Regarding seed production supported by the state budget once: The level of recovery remitted to the state budget is 30% of the state budget capital supported for implementing this content. For forestry seed projects, the maximum level of recovery for implementing seed production is 30% of the state budget capital supported for implementing this content. In cases where the value of the seeds sold is lower than the amount to be recovered, the level of recovery remitted to the state budget is equal to the value of the seeds sold from the project.

1.2. Time for recovering costs for each project:

a) Time for remitting to the state budget: To be decided by the project approval authority; the maximum period is 12 months after the project ends, during which the project owner must fully remit to the state budget the amount due.

b) Exemption or reduction of recovery remittance to the state budget: In cases where the project must be suspended due to objective reasons causing damage to the project, such as typhoons, floods, fires, exemption or reduction of recovery costs may be considered. When encountering the aforementioned situations, the units responsible for the project must submit detailed written reports to the higher management authority for inspection and confirmation regarding the implementation process and the reason for suspending the project; the ability to repay the state budget support capital; the Ministry of Agriculture and Rural Development, central ministries and agencies will inspect and confirm and decide on the level of exemption or reduction of recovery costs based on a written consensus with the Ministry of Finance (for projects implemented from central government budget funds); the Department of Agriculture and Rural Development will inspect and confirm and coordinate with the Department of Finance to report to the People's Committee of the province for decision (for projects implemented from local government budget funds).

2. For investment and support investment in basic construction:

a) Investment in infrastructure at Research Institutes, specialized universities, National Seed Centers, regional seed centers, provincial seed centers; Investment in material facilities for producing original seeds, super parent seeds, leading tree seeds, specific crossbred seeds, core herds, seed gardens, seed forests, aquatic seed breeding; Material facilities for the management and quality control system of seeds where the investor is a public service entity or a state management agency: After the project is completed, the investment value is recorded as an increase in the value of state assets managed and used by the unit.

b) For seed forests and seed gardens of forestry crops funded by the central budget, implemented on land managed by units under local administration, upon project completion, the seed forests and seed gardens are handed over to local management for continued investment, care, protection, and long-term maintenance of seed production. The Ministry of Agriculture and Rural Development organizes the handover of assets to the locality, for the locality to transfer to the managing unit according to current regulations.

c) For enterprises, cooperatives, cooperative groups, individuals receiving state budget support for infrastructure construction (transportation, irrigation, waste treatment) in concentrated seed production areas applying high technology: There is no recovery of support funding.

Chapter IV CREDIT POLICY AND LAND AND WATERWORKS FEES INCENTIVES

Article 11. Credit Policy

1. Public service units, enterprises, cooperatives, production cooperatives, and individuals investing in the production of original seeds, super parent seeds, parent seeds, parent lines (for hybrid seeds), leading trees, grandparent seeds, great-grandparent seeds, core breeding herds, breeding herds, forestry seedling nurseries, seedling forests, new seeds using high technology under projects approved by competent authorities shall be eligible to borrow development credit according to current regulations.

2. Procedures for borrowing, forms of borrowing, and amounts of borrowed capital for investment in producing the types of seeds mentioned in Clause 1 above shall be governed by Decree No. 75/2011/NĐ-CP dated August 30, 2011 of the Government on investment credit and export credit.

3. Public service units, enterprises, cooperatives, production cooperatives, and individuals with experimental projects on seed production, processing, and applying scientific and technological advances in seeds may borrow from the National Science and Technology Development Fund and local science and technology development funds. The financial support method of the National Science and Technology Development Fund is stipulated in Article 13, and the procedures for selecting loans are stipulated in Article 14 of Decree No. 122/2003/NĐ-CP dated October 22, 2003 of the Government on establishing the National Science and Technology Development Fund.

Article 12. Land Incentives

1. Organizations using land for research, testing, and producing pre-commercial seed levels shall be allocated land by the State without payment of land use fees according to Clause 2, Article 33 of the Land Law 2003.

2. Organizations using land for producing commercial seeds shall be exempted or granted reductions in land use fees and land rental fees according to Point a, Clause 1, Article 60 of the Land Law 2003. They shall enjoy the highest level of incentives regarding land use fees and land rental fees as prescribed in Decree No. 198/2004/NĐ-CP dated December 3, 2004 on collecting land use fees, Decree No. 44/2008/NĐ-CP dated April 9, 2008 amending and supplementing certain articles of Decree No. 198/2004/NĐ-CP, and Decree No. 120/2010/NĐ-CP dated December 30, 2010 amending and supplementing certain articles of Decree No. 198/2004/NĐ-CP.

3. Enterprises leasing land to expand seed production beyond the area already allocated or leased by competent authorities shall benefit from incentives on land rental fees according to Decree No. 61/2010/NĐ-CP dated June 4, 2010 of the Government.

Article 13. Waterworks Fees Incentives

Organizations and individuals using land for research, testing, and producing agricultural, forestry, livestock, and aquaculture seeds shall be exempted from waterworks fees by the State. The exemption of waterworks fees shall be implemented according to Decree No. 115/2008/NĐ-CP dated November 14, 2008 amending and supplementing certain articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Waterworks Law; Circular No. 36/2009/TT-BTC dated February 26, 2009 of the Ministry of Finance guiding the implementation of certain articles of Decree No. 115/2008/NĐ-CP.

Chapter V

 ESTABLISHING, IMPLEMENTING, AND SETTLING THE STATE BUDGET

Article 14. Establishing, Implementing, and Settling the State Budget

1. The preparation of budgets, payments, and settlement of economic public service expenses, scientific research expenses provided for the Seed Project shall be carried out according to Circular No. 59/2003/TT-BTC dated June 26, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing the implementation of the State Budget Law and this Circular; Circular No. 01/2007/TT-BTC dated January 2, 2007 of the Ministry of Finance guiding the examination, evaluation, and notification of annual settlements for administrative agencies, public service units, organizations supported by the state budget, and budgets at all levels.

2. Preparation of budgets and settlement of construction investment capital:

 - Preparation of budgets shall be carried out according to Circular No. 59/2003/TT-BTC dated June 26, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing the implementation of the State Budget Law.

- Payment procedures shall be carried out according to Circular No. 86/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance on managing and settling construction investment capital and public service capital with investment characteristics from state budget sources.

 - Annual settlement reports shall be carried out according to Circular No. 210/2010/TT-BTC dated December 20, 2010 of the Ministry of Finance on settling construction investment capital from state budget sources annually.

 - Settlement of completed project investment capital shall be carried out according to Circular No. 19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance guiding the settlement of completed projects from state capital sources.

3. For supplementary targeted budget funds of the central government for localities implementing the Seed Project:

- Based on seed projects of localities that have been approved by competent authorities according to planning and local budget capacity; Provincial People's Committees shall prepare budget estimates for the portion of funds requested from the central government to support the implementation of seed projects and send them to the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the Ministry of Planning and Investment.

- The Ministry of Agriculture and Rural Development shall prepare budget estimates for implementing the Seed Project (including funds for seed projects managed by central ministries and agencies and targeted support funds for local seed projects) together with the annual budget preparation time and send them to the Ministry of Finance and the Ministry of Planning and Investment.

 - Based on the central budget capacity, the Ministry of Planning and Investment (for development investment capital) and the Ministry of Finance (for public service capital) shall coordinate with the Ministry of Agriculture and Rural Development to consider the level of targeted budget support to implement local seed projects; consolidate and prepare the state budget revenue and expenditure estimates, and the central budget allocation plan to report to the Government for submission to the National Assembly for consideration and decision.

Article 15. Reporting, inspection, and supervision work

- Every six months and annually, project investment units responsible for seed projects shall prepare monitoring and evaluation reports on investment in accordance with Government Decree No. 113/2009/NĐ-CP dated December 15, 2009, and Circular No. 13/2010/TT-BKH dated June 2, 2010, of the Ministry of Planning and Investment, to be submitted to the competent investment management authority at the current level of classification.

- Ministries and central agencies shall coordinate with the Ministry of Planning and Investment and the Ministry of Finance; provincial Departments of Agriculture and Rural Development shall coordinate with provincial Departments of Planning and Investment and provincial Departments of Finance to organize regular or spot inspections regarding the implementation and use of funds for the seed program to ensure that funds are used for their intended purposes and effectively.

Chapter VI

IMPLEMENTATION

Article 16. Responsibilities of the Ministry of Agriculture and Rural Development

1. Direct and guide ministries, central agencies, and localities in implementing the seed development program for agricultural and forestry crops, livestock breeds, and aquaculture breeds during the period of 2011-2020 throughout the country; manage seed projects, scientific research topics, and technology projects related to seeds within the scope of the Ministry in accordance with current regulations.

2. Approve economic and technical norms (including materials and labor) for the implementation of public expenditure items for projects managed by ministries and central agencies.

3. Aggregate the budget estimate for implementing the seed program, including: funds for seed projects managed by ministries and central agencies and targeted support funds for local seed projects at the time of annual budget preparation, to be sent to the Ministry of Finance, the Ministry of Planning and Investment.

4. Midway and upon completion of the implementation of the seed program, the Ministry of Agriculture and Rural Development shall aggregate results nationwide and report.

Article 17. Responsibilities of the Ministry of Education and Training and the Ministry of Industry and Trade

1. The Ministry of Education and Training and the Ministry of Industry and Trade are responsible for directing, approving, and aggregating the budget estimates for seed projects funded by units under their management at the time of annual budget preparation, to be sent to the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, and the Ministry of Finance.

2. Direct project sponsors to implement investment monitoring reporting systems; strengthen supervision and inspection of the implementation and use of funds for seed projects; inspect and settle accounts for projects according to current regulations and Article 15 of this Circular regarding reporting, inspection, and supervision systems.

Article 18. Responsibilities of the Ministry of Planning and Investment and the Ministry of Finance

1. Aggregate and balance funds (the Ministry of Planning and Investment leads for construction capital, the Ministry of Finance leads for public expenditure) for seed projects approved by ministries and sectors; supplement targeted funds according to the State Budget Law for localities implementing the seed program to be included in the annual budget draft for submission to the Government and reported to the National Assembly for consideration and decision.

2. Coordinate with ministries and sectors to regularly or spot-check the implementation of seed projects by ministries, sectors, and localities.

Article 19. Responsibilities of Provincial People's Committees

1. Provincial People's Committees are responsible for directing the seed program within their jurisdiction; managing seed projects of the locality in accordance with current regulations; reviewing and approving seed projects managed by the locality.

2. Approve economic and technical norms (only including materials and labor) for the implementation of public expenditure items for projects managed by the province; guide levels of investment support, recovery amounts and forms for projects funded by private enterprises without state-owned capital representation, cooperatives, production groups, and individuals supported by local government budgets.

3. Implement reports, inspections, and audits on the implementation and use of funds for seed projects, acceptance, and settlement according to current regulations and Article 15 of this Circular regarding reporting, inspection, and audit systems.

Article 20. Effective Date

1. This Circular takes effect from April 15, 2012, and replaces Joint Circular No. 15/2007/TTLT-BTC-BNNPTNT dated March 8, 2007, of the Ministry of Finance and the Ministry of Agriculture and Rural Development guiding the management and use of state funds for the crop, livestock, and forestry seed programs, and Circular No. 56/2001/TTLT-BTC-BTS dated July 9, 2001, of the Ministry of Finance and the Ministry of Fisheries guiding financial management for aquaculture seed development projects funded by the state budget.

2. During the implementation process, if there are difficulties or obstacles, agencies, organizations, and individuals are advised to reflect these issues to the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the Ministry of Planning and Investment for timely study and resolution.