Circular No. 113/2006/TT-BTC guiding certain contents on state budget support for the development of rural industries under Decree No. 66/2006/NĐ-CP dated July 7, 2006

CIRCULAR

Guidelines on certain contents regarding state budget support for rural craft development pursuant to Decree No. 66/2006/NĐ-CP

dated July 7, 2006 of the Government

dated July 7, 2006 of the Government

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Pursuant to Decree No. 66/2006/NĐ-CP dated July 7, 2006 of the Government on rural craft development;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

The Ministry of Finance hereby provides detailed guidelines on certain contents regarding state budget support for rural craft development as follows:

I. OBJECTS OF OPERATING EXPENSE SUPPORT FROM THE STATE BUDGET

FROM THE STATE BUDGET

1. The scope of rural crafts defined in this Circular includes:

a. Processing and preserving agricultural, forestry, and aquatic products.

b. Producing construction materials, wooden goods, rattan and bamboo weaving, ceramics, glassware, textiles, and small machinery.

c. Processing raw materials for rural craft production.

d. Producing handicrafts.

đ. Cultivating and trading ornamental plants.

e. Construction, transportation within villages and inter-village areas, and other services supporting production and rural residents' livelihood.

f. Organizing vocational training, passing down skills; advising on production and business activities in the field of rural crafts.

2. Objects eligible for operating expense support from the state budget include:

a. Domestic and foreign organizations and individuals directly investing in developing production and services in the field of rural crafts as specified in Point 1, Section I of this Circular (hereinafter referred to collectively as rural craft establishments) operating in rural areas, including:

- Small and medium enterprises established and operating under the Law on Enterprises, specifically defined in Article 3 of Decree No. 90/2001/NĐ-CP dated November 23, 2001 of the Government on assisting the development of small and medium enterprises.

- Cooperatives established and operating under the Law on Cooperatives.

- Individual households registered according to the law on business registration.

b. Craft villages and clusters of rural craft establishments recognized by provincial People's Committees as traditional crafts, craft villages, and traditional craft villages in accordance with the regulations of the Ministry of Agriculture and Rural Development on the content and criteria for recognizing traditional crafts, craft villages, and traditional craft villages.

II. CONTENT AND SOURCES OF SUPPORT FUNDS

FROM THE STATE BUDGET

1. Activities supported:

a. Investment in infrastructure construction and environmental treatment for craft villages and clusters of rural craft establishments.

b. Scientific and technological activities serving the development of rural crafts, including: implementing independent research projects or collaborating with scientific research institutions to create new technologies and improve research products with commercial potential in the field of rural crafts.

c. Information dissemination, publicity; model building, technology transfer; training and capacity building; consulting and service provision.

d. Training activities conducted by rural craft establishments directly offering skill transmission classes and training costs for rural laborers participating in such classes.

2. Basis and sources of support funds:

2.1 Support for part of the investment cost in infrastructure construction and environmental treatment for craft villages and clusters of rural craft establishments:

Based on the overall planning for the development of rural crafts nationwide and the planning for the development of rural crafts at the provincial level approved by competent authorities, the provincial People's Committee, or the district People's Committee (if authorized by the provincial People's Committee), decides on investment projects for infrastructure construction and environmental treatment for craft villages and clusters of rural craft establishments; clearly identifying the sources of funding for the project, which include: state budget funds, contributions from organizations and individuals benefiting from the project, and other lawful sources of funding. Among these, the maximum local government budget support is 60% of the total project investment capital, while the minimum contribution from organizations and individuals benefiting from the project and other lawful sources is 40% of the total project investment capital. For provinces facing financial difficulties, the central government will provide partial support within the annual budget estimate to implement the project, with the support amount determined by the Government and submitted to the National Assembly for approval in accordance with the State Budget Law.

2.2 Support for part of the operating expenses for rural craft establishments conducting scientific research projects:

Based on scientific research projects (conducted independently by rural craft establishments or in collaboration with scientific research institutions) aimed at creating new technologies and improving research products with commercial potential in the field of rural crafts, decided upon by competent state authorities: For projects managed by localities, the Department of Agriculture and Rural Development, the Department of Science and Technology, and relevant departments shall coordinate with the Department of Finance to compile reports for the provincial People's Committee to decide on the level of support from the local budget (research and science and technology expenditure fund) to implement the research project; for projects managed centrally, the Minister in charge of the relevant sector shall determine the level of support for rural craft establishments to carry out the research project within the allocated research and science and technology budget. The content and level of expenditure for each activity of the research project shall be carried out in accordance with Joint Circular No. 45/2001/TTLT/BTC-BKHCNMT dated June 18, 2001 of the Ministry of Finance and the Ministry of Science, Technology, and Environment on guiding certain expenditure regimes for scientific and technological tasks; Joint Circular No. 93/2006/TTLT/BTC-BKHCN dated October 4, 2006 of the Ministry of Finance and the Ministry of Science and Technology on guiding the regime of budget allocation for scientific and technological projects using state budget funds, and other regulatory legal documents stipulating the expenditure regime for implementing scientific research tasks.

2.3 Support for agricultural extension, fisheries extension, and industrial extension activities to assist rural craft establishments:

The central budget supports activities for agricultural extension, fisheries extension, and industrial extension managed by the central government; the local budget supports activities for agricultural extension, fisheries extension, and industrial extension managed by local governments; the specific levels of expenditure and details of expenditures are implemented according to Circular Joint No. 30/2006/TTLT-BTC-BNN&PTNT-BTS dated April 6, 2006, issued by the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the Ministry of Fisheries on the management and use of economic public funds for agricultural extension and fisheries extension activities; Circular Joint No. 36/2005/TTLT-BTC-BCN dated May 16, 2005, issued by the Ministry of Finance and the Ministry of Industry on guiding the use of economic public funds for industrial extension activities.

2. 4/ Support vocational training for rural labor.

a/ Support part of the class costs for rural craft villages and rural industry bases directly organizing skill transmission classes.

Based on the decision of the provincial People's Committee recognizing craft villages and industry bases according to the content and standards prescribed by the Ministry of Agriculture and Rural Development; based on the development potential of craft villages, clusters of traditional industry bases, and the vocational training needs of the locality, the Department of Labor - Invalids and Social Affairs of the district shall coordinate with the People's Committee of the commune to guide economic entities and rural craft villages to organize skill transmission classes, while coordinating with economic entities and craft villages to prepare the budget for the class costs (including rental fees for teaching venues, expenses for materials serving the transmission activities (excluding costs for products from the skill transmission classes that have the potential to recover capital and generate profit), and determining the level of support for class costs. Based on the need for financial support for skill transmission classes, the Department of Labor - Invalids and Social Affairs shall compile the financial support needs for skill transmission classes within the district and report to the provincial People's Committee for consideration and decision, which will be reviewed by the Department of Finance and approved by the provincial People's Committee to provide partial funding for the class costs from the local vocational training and teaching budget; the Department of Labor - Invalids and Social Affairs of the district shall take the lead in coordinating with the People's Committee of the commune to monitor the classes and settle the financial support for the skill transmission classes.

b/ When participating in vocational training at vocational training institutions, rural laborers are supported financially for training according to the policy of supporting short-term vocational training for rural laborers as stipulated in Circular Joint No. 06/2006/TTLT-BTC-BLDTBXH dated January 19, 2006, issued by the Ministry of Finance and the Ministry of Labor - Invalids and Social Affairs, wherein: the local budget allocates funds from the vocational training and teaching public fund assigned to the locality; the central budget provides targeted support from the project budget "Strengthening Vocational Training Capacity" under the National Target Program on Education and Training for provinces that cannot balance their budgets and have a large number of rural workers.

III. SOME OTHER PREFERENTIAL POLICIES

In addition to the preferential support from the state budget for developing rural industries as specified in Sections I and II of this Circular, rural industry bases are entitled to the following preferential mechanisms:

1/ When relocating out of residential areas to planned locations, rural industry bases are entitled to preferential land use fees, land lease fees, land use taxes, and financial support for relocation according to Decision No. 74/2005/QĐ-TTg dated April 6, 2005, issued by the Prime Minister on the use of land transfer fees, sale proceeds of factories and other facilities when economic organizations must relocate their headquarters and production and business sites according to planning, and Circular No. 66/2005/TT-BTC dated August 18, 2005, issued by the Ministry of Finance guiding the implementation of Decision No. 74/2005/QĐ-TTg dated April 6, 2005, issued by the Prime Minister.

2/ Rural industry bases are supported by the state in trade promotion activities under the National Trade Promotion Program according to Decision No. 279/2005/QĐ-TTg dated November 3, 2005, issued by the Prime Minister on the regulations for building and implementing the National Trade Promotion Program for the period 2006-2010.

3/ For effective production and business projects, they are entitled to investment incentives under the Investment Law; can borrow funds from the Employment Creation Fund according to Decision No. 71/2005/QĐ-TTg dated April 5, 2005, issued by the Prime Minister on the mechanism for managing and operating the loan capital of the National Employment Fund; can have their loans guaranteed by the Small and Medium Enterprise Credit Guarantee Fund according to Decision No. 115/2004/QĐ-TTg dated June 25, 2004, issued by the Prime Minister on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium Enterprises; and can enjoy state credit investment policies according to the relevant laws.

IV. IMPLEMENTATION

1/ The preparation, management, use, and settlement of financial support funds from the state budget for developing rural industries shall be carried out in accordance with the State Budget Law, Decree No. 60/2003/NĐ-CP dated June 6, 2003, issued by the Government detailing and guiding the implementation of the State Budget Law; Circular No. 59/2003/TT-BTC dated June 23, 2003, issued by the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003, issued by the Government detailing and guiding the implementation of the State Budget Law, and other guiding documents.

2/ This Circular takes effect fifteen days after its publication in the Official Gazette. During the implementation process, if there are any difficulties, please promptly reflect them to the Ministry of Finance for coordination and resolution.