Circular No. 113/2007/TT-BTC amends and supplements certain provisions of Circular No. 71/2006/TT-BTC regarding the implementation of expenditures for additional income for employees in public service units.
Scope of application
Public Service Units
Key points
- Public Service Units → are allowed to implement expenditures for additional quarterly income not exceeding 60% of the surplus revenue over expenditure determined by the unit on a quarterly basis.
- By January 31 of the following year, at the end of the year, public service units must determine the surplus revenue over expenditure and the budget for additional income payments from the previous year to pay employees without exceeding the prescribed limit.
- Based on the final accounts approved by the competent authority, if the actual surplus revenue over expenditure exceeds the amount determined by the unit and the budget already paid out for additional income to employees, the unit may continue to make payments according to the prescribed regulations.
- If the actual surplus revenue over expenditure is lower than the amount determined by the unit and the budget already paid out for additional income to employees exceeds the allowable amount, the unit must use the Income Stabilization Reserve Fund to cover the shortfall.
- If there is still a deficit after using the Reserve Fund, it shall be deducted from the surplus revenue, expenditure reserved for additional income payments of the following year; in case there is no surplus revenue over expenditure in the following year, it shall be deducted from the Salary Fund of the unit.
🌐 Social impact of this document
- Positive impact: Promptly motivate employees to complete tasks and improve operational efficiency.
- Negative impact: May cause financial pressure on the unit if the actual surplus revenue over expenditure is lower than the amount determined by the unit.
❓ Frequently asked questions
What percentage of additional income can public service units allocate for expenditure?
Public service units are allowed to implement expenditures for additional quarterly income not exceeding 60% of the surplus revenue over expenditure determined by the unit on a quarterly basis.
When must public service units determine the surplus revenue over expenditure?
By January 31 of the following year, at the end of the year, public service units must determine the surplus revenue over expenditure and the budget for additional income payments from the previous year to pay employees.
If the actual surplus revenue over expenditure is higher than the amount determined by the unit, can the unit continue to make additional income payments?
The unit may continue to make additional income payments according to the prescribed regulations.
If the actual surplus revenue over expenditure is lower than the amount determined by the unit, what must the unit do?
The unit must use the Income Stabilization Reserve Fund to cover the shortfall. If there is still a deficit after using the Reserve Fund, it shall be deducted from the surplus revenue, expenditure reserved for additional income payments of the following year; in case there is no surplus revenue over expenditure in the following year, it shall be deducted from the Salary Fund of the unit.
When does this Circular take effect?
This Circular takes effect fifteen days after its publication in the Official Gazette.
Full text
CIRCULAR
Amending and supplementing Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of Decree
No. 43/2006/NĐ-CP dated April 25, 2006 of the Government stipulating the rights to self-management and self-responsibility
for the performance of tasks, organizational structure, staffing, and finance of public service units
_____________________________________
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;
To be consistent with current circumstances, the Ministry of Finance guides the amendment and supplementation of certain provisions in Circular No. 71/2006/TT-BTC dated August 9, 2006 guiding the implementation of Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government stipulating the rights to self-management and self-responsibility for the performance of tasks, organizational structure, staffing, and finance of public service units as follows:
1. Amend Clause 6, Section VIII of Circular No. 71/2006/TT-BTC as follows:
"6. Implementation of expenditures from additional income: Based on the financial results of the unit for each quarter and year, to promptly motivate employees to strive to complete assigned tasks, the head of the public service unit shall implement expenditures from additional income quarterly, not exceeding 60% of the surplus revenue over expenditure determined by the unit for each quarter.
- By the end of the year, before January 31 of the following year, the public service unit implementing the self-management and self-responsibility system for finance shall determine the surplus revenue over expenditure and the budget for additional income payments of the previous year according to the internal expenditure regulations of the unit to pay additional income to employees without exceeding the prescribed limit.
- Based on the final accounts approved by the competent authority: In cases where the actual surplus revenue over expenditure is higher than the amount determined by the unit and the budget for additional income payments (as prescribed) is higher than the amount already paid out as additional income to employees, the unit may continue to pay additional income to employees according to the prescribed regulations. In cases where the actual surplus revenue over expenditure is lower than the amount determined by the unit and the amount already paid out as additional income to employees exceeds the budget for additional income payments (as prescribed), the excess expenditure must be covered by the Income Stabilization Reserve Fund (if available); if there is still a shortfall after using the Income Stabilization Reserve Fund, it will be deducted from the surplus revenue over expenditure allocated for additional income payments in the following year; if there is no surplus revenue over expenditure in the following year, it will be deducted from the unit's salary fund."
2. Amend Clause 5, Section IX of Circular No. 71/2006/TT-BTC as follows:
"5. Implementation of expenditures from additional income: Based on the financial results of the unit for each quarter and year, to promptly motivate employees to strive to complete assigned tasks, the head of the public service unit shall implement expenditures from additional income quarterly, not exceeding 60% of the surplus revenue over expenditure determined by the unit for each quarter.
- By the end of the year, before January 31 of the following year, the public service unit implementing the self-management and self-responsibility system for finance shall determine the surplus revenue over expenditure and the budget for additional income payments of the previous year according to the internal expenditure regulations of the unit to pay additional income to employees without exceeding the prescribed limit.
- Based on the final accounts approved by the competent authority: In cases where the actual surplus revenue over expenditure is higher than the amount determined by the unit and the budget for additional income payments (as prescribed) is higher than the amount already paid out as additional income to employees, the unit may continue to pay additional income to employees according to the prescribed regulations. In cases where the actual surplus revenue over expenditure is lower than the amount determined by the unit and the amount already paid out as additional income to employees exceeds the budget for additional income payments (as prescribed), the excess expenditure must be covered by the Income Stabilization Reserve Fund (if available); if there is still a shortfall after using the Income Stabilization Reserve Fund, it will be deducted from the surplus revenue over expenditure portion allocated for additional income payments in the following year; if there is no surplus revenue over expenditure in the following year, it will be deducted from the unit's salary fund.
3. Amend Appendix No. 06 attached to Circular No. 71/2006/TT-BTC:
(See attached appendix).
4. Implementation: This circular takes effect 15 days after its publication in the Official Gazette. Other provisions in Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government stipulating the rights to self-management and self-responsibility for the performance of tasks, organizational structure, staffing, and finance of public service units remain in force.
During the implementation process, if there are any difficulties, units are requested to report to the Ministry of Finance for prompt resolution./.
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