Circular No. 11/TC-NSNN stipulates temporarily the cash receipts and payments of the State Budget through the National Treasury system.

CIRCULAR

MINISTRY OF FINANCE DECREE NO. 11-TC/NSNN OF MARCH 3, 1990 ON TEMPORARY PROVISIONS REGARDING THE COLLECTION AND EXPENDITURE OF THE STATE BUDGET IN CASH AND THROUGH BANK TRANSFERS THROUGH THE NATIONAL TREASURY SYSTEM 

IMPLEMENTING Decision No. 07-HĐBT dated January 4, 1990 of the Council of Ministers on the establishment of the National Treasury system under the Ministry of Finance, and based on Decision No. 71-TC/QĐ/TCCB dated February 28, 1990 of the Minister of Finance on the temporary provisions regarding the functions, tasks, and organizational structure of the National Treasury system under the Ministry of Finance, the Ministry of Finance hereby issues temporary regulations on the collection and expenditure of the State budget in cash and through bank transfers through the National Treasury system as follows:

I. SCOPE AND OBJECTS OF IMPLEMENTATION

1. The collection and expenditure of the State budget in cash and through bank transfers through the National Treasury system of units, production and business enterprises, service organizations; state-owned economic organizations, joint public-private enterprises, collective economic organizations, and individuals; administrative agencies, public institutions; military forces; Party organizations, mass organizations; people's associations... under central and local management.

2. Collection and expenditure in Vietnamese dong and foreign currency from the State budget funds.

3. Payments due from foreign enterprises investing in Vietnam, diplomatic missions, and trade offices of Vietnam abroad.

II. SPECIFIC PROVISIONS

1. All collections of the State budget in cash such as: industrial and commercial taxes; agricultural taxes; non-trade customs duties; lottery revenues; construction bonds; other revenues (traffic fees, contributions from the public, liquidation of assets, fines, rent, water and electricity for employees...) which were previously deposited with the State Bank shall be directly deposited into the National Treasury from April 1, 1990.

2. Units, production and business enterprises, service organizations, have the obligation to pay State budget revenues (such as state-owned revenues, taxes, profit contributions, price differences, depreciation, capital recovery, fixed asset valuation changes...). If paid in cash, they must deposit directly at the branch or district treasury office where the unit is located. In case of payment by bank transfer, the units, enterprises, and economic organizations must process the procedures to deduct from their accounts at the specialized bank where daily transactions take place and deposit into the National Treasury according to the prescribed regulations.

3. For administrative agencies, units, enterprises, state-owned economic organizations, joint ventures, collective economic organizations, and private entities that have the obligation to pay State budget revenues (as mentioned in points 1 and 2 above), if they have gold or foreign currency that cannot be converted into Vietnamese dong and after obtaining the agreement of the National Treasury agency, these units and individuals may be permitted to use gold or freely convertible foreign currencies (in cash or foreign currency transfer checks) to pay the revenues into the National Treasury. The amount of revenue paid by the units and individuals will be calculated equivalently based on the total value and purity of the gold according to the purchase price of the Bank and the exchange rate of foreign currency to Vietnamese dong published by the Central Foreign Trade Bank at the time of payment.

4. For foreign currencies provided by international organizations and foreigners supporting Vietnam; donations from overseas Vietnamese communities for national construction; revenues or contributions from Vietnamese officials, students working, studying, and laboring abroad sent back for national construction or to help disaster-stricken areas... all must be promptly transferred back to the country and fully deposited into the State budget fund at the General Treasury Office by the embassies, trade offices, and representatives of Vietnamese organizations abroad.

5. The allocation of State budget capital to budgetary units, economic organizations related to the National Treasury system will still be carried out in two forms: cash disbursement and notification of approved budget limits according to the regulations of the Ministry of Finance.

Within the sources of State budget capital and allocated funds, expenditures are divided into two types:

- Regular expenditures (such as salaries, scholarships, living expenses, allowances, social insurance, administrative and professional fees, small purchases and repairs, and other expenditures).

- Non-regular expenditures (such as working capital, state reserves; debt payments; costs for sending and receiving delegations; large purchases and repairs; special conference, celebration, and sector summary costs; exhibition costs; training and professional instruction costs; other unexpected costs...).

6. Based on the content and nature of the State budget expenditures mentioned above, the specific provisions for cash and bank transfer expenditures of budgetary units through the National Treasury system are as follows:

a) Cash expenditures:

Cash expenditures include salaries, scholarships, living expenses, allowances (similar to salaries), social insurance; administrative and professional fees, regular small purchases and repairs, and some other expenditures of administrative agencies, public institutions, Party organizations, mass organizations, people's associations, and military forces under central and local management.

The National Treasury agencies at all levels ensure sufficient cash disbursements for the expenditures listed in point a) for budgetary units according to the following regulations:

+ Budgetary units must have quarterly cash income and expenditure plans (divided by month) that have been reviewed and approved by the National Treasury agency (where the unit conducts daily transactions).

+ The State Treasury is only permitted to disburse budget funds at all levels for payment to budgetary units in cash (including payments by transfer) within the balance of the budget deposit account or the budget allocation limit of the unit that has been approved and distributed according to the correct chapters, types, clauses, and items of the state budget and according to the cash withdrawal schedule prescribed by the treasury agency for each budgetary unit.

+ Payment vouchers for cash and transfer payments issued by budgetary units must comply with the prescribed formats of the Ministry of Finance and the guidelines of the State Treasury Department.

b) Payment by transfer:

In addition to the cash payments specified above, other payments of budgetary units must be made by transfer through the budget deposit accounts and the budget allocation limit accounts of the units at the State Treasury.

For budget transfers at various levels made through the treasury accounts at banks such as: loans or subsidies from higher-level budgets to lower-level budgets; advance funding for construction works financed by the state budget; provision of working capital, reserve funds, foreign debt payments, etc., the State Treasury may use the payment orders of the financial agencies disbursing the state budget to transfer funds from the treasury's bank deposit accounts to relevant sectors and localities.

III. IMPLEMENTATION

This Circular takes effect from April 1, 1990.

It is requested that all Ministries, sectors, and local authorities at all levels instruct subordinate units to implement the temporary regulations stipulated in this Circular properly. The State Treasury system and financial agencies at all levels should closely coordinate to organize implementation in accordance with the aforementioned regulations.

Any unclear points or difficulties encountered during implementation should be promptly reported to the Ministry of Finance for further guidance.