Joint Circular No. 118/2008/TTLT-BTC-BTNMT guides the management, use, and settlement of state budget funds for economic public services related to water resource management activities.

 JOINT CIRCULAR

Guidelines for managing, using, and settling accounts for state budget funds for economic purposes

related to water resource management activitiesconcerning water resource management activities

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

To unify the management and use of state budget funds for economic purposes for water resource management activities, the Ministry of Finance and the Ministry of Natural Resources and Environment jointly issue the following guidelines:

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

Article 1. These guidelines regulate the management, use, and settlement of accounts for state budget funds allocated annually for economic purposes to implement tasks and projects related to water resource management activities.

Article 2. Tasks and projects for water resource management carried out by ministries, ministerial-level agencies, government agencies, and other central agencies (hereinafter referred to collectively as ministries and central agencies) shall be funded from the central budget; tasks and projects for water resource management carried out by local agencies and units shall be funded from the local budget.

Article 3. Tasks and projects for water resource management must be approved by competent authorities before they can meet the conditions for allocation of funds and implementation.

Article 4. Units using state budget funds for economic purposes in the field of water resources must use them for their intended purpose and in accordance with regulations, subject to inspection and supervision by competent authorities; at the end of each quarter and year, they must settle accounts for the funds used according to current regulations.

Chapter II. SPECIFIC PROVISIONS

Article 1. Expenditure tasks for state budget funds for economic purposes related to water resource management activities:

Clause 1. Expenditure tasks from the central budget:

Point a. Basic investigation and evaluation of water resources:

- Central water resource monitoring network operations;

- Preparation of water resource maps for river basins, regions, aquifers, and assessment of factors affecting water resources nationwide;

- Investigation and evaluation of surface and groundwater resources by region and nationwide to serve economic and social development according to approved projects.

Point b. Water resource planning for river basins, key economic regions, and the entire country.

Point c. Water resource protection activities:

- Assessment of wastewater discharge status in inter-provincial areas, economic-social regions, and key economic regions;

- Determination of water quality and wastewater reception capacity for inter-provincial rivers; monitoring of wastewater discharge into water sources;

- Development and implementation of measures to protect water quality, prevent pollution, and manage saltwater intrusion; restoration of polluted water sources in inter-provincial areas, economic-social regions, and key economic regions.

Point d. Activities to prevent water resource depletion and exhaustion:

- Statistics and assessment of water resource extraction and utilization in inter-provincial areas, economic-social regions, and key economic regions;

- Determination of extraction limits for inter-provincial rivers, aquifers, water reserves, protected areas, and restricted extraction zones; development of plans for water resource regulation and distribution, and organization of monitoring of water resource extraction and utilization;

- Development and implementation of measures for efficient and economical water resource use, proactive prevention of water resource depletion and exhaustion, and restoration of depleted and exhausted water sources in inter-provincial areas, economic-social regions, and key economic regions.

Point đ. Other supporting activities:

- Periodic national water resource inventory and assessment according to the Water Resources Law: Drafting, printing, and issuing guidance documents and forms for water resource inventory and assessment; developing procedures and training provincial-level inventory staff; implementing water resource inventory and assessment according to approved programs; compiling, processing, and publishing national water resource inventory data;

- Receiving, storing, and preserving reports on water resource investigation, assessment, and planning results; announcing water resource investigation and assessment results and water resource information and data nationwide; maintaining the national water resource information system and database;

- Compiling and editing technical standards, economic-technical norms for water resource investigation, assessment, and planning; compiling and editing annual water resource data compendiums; evaluating, forecasting, and periodically reporting on water source potential;

- Promoting and disseminating laws on water resources; providing specialized training on water resources to the provincial level;

- Supporting inspection and supervision activities for the implementation of water resource laws and resolving disputes over water sources;

- Major repairs, procurement of equipment and technology for statistical, inventory, and investigative work on water resources (for public service units);

- Counterpart funding for foreign cooperation projects in the water resources sector (if applicable);

- Other expenses related to water resource management tasks (if applicable).

Clause 2. Expenditure tasks from the local budget:

Point a. Basic investigation and evaluation of water resources:

- Local water resource monitoring network operations;

- Preparation of various types of water resource maps within the locality and assessment of factors affecting local water resources;

- Investigation and evaluation of surface and groundwater resources to serve economic and social development within the locality according to approved programs.

Point b. Water resource planning within the locality.

Point c. Water resource protection activities:

- Assessment of wastewater discharge status within the locality;

- Statistics on water usage purposes; determination of water quality and wastewater reception capacity for rivers and lakes within the locality; monitoring of wastewater discharge within the locality;

- Development and implementation of measures to protect water quality, prevent pollution, and manage saltwater intrusion; restoration of polluted water sources within the locality after approval.

- Determine, manage, and supervise the sanitary protection zones for water supply areas within the local administrative area.

Point d. Activities to prevent water resource depletion and exhaustion:

- Statistically assess the current state of water resource exploitation and utilization within the local administrative area.

- Define extraction limits for rivers, aquifers, water storage areas, and underground water restricted areas entirely within the local administrative area; develop plans to regulate and allocate water resources and monitor their exploitation and utilization within the local administrative area.

- Develop and implement effective and economical water resource usage measures; proactively prevent and combat water depletion and degradation; restore degraded and depleted water sources within the local administrative area after approval.

Point đ. Other supporting activities:

- Inventory and evaluate water resources periodically according to the Water Resources Law on the local administrative area: print inventory documents and forms; train local government staff on inventory procedures; organize the implementation of water resource inventory and evaluation projects approved by competent authorities; direct, inspect, compile, and process inventory data.

- Receive, store, and preserve reports on investigation, assessment, and planning of water resources; publish results of water resource investigations and assessments and related data on water resources within the local administrative area; maintain a database information system on water resources at the local level.

- Compile annual reviews, water resource data, and evaluate and forecast potential water sources within the local administrative area; regularly announce these potentials.

- Promote, disseminate, and educate on laws regarding water resources; provide specialized training on water resource management.

- Support inspection and supervision activities concerning the implementation of water resource laws and dispute resolution activities over water sources within the local administrative area;

- Major repairs, procurement of equipment and technology for statistical, inventory, and investigative work on water resources (for public service units);

- Counterpart funding for cooperative projects with foreign countries regarding water resources (if applicable);

- Other expenses related to local water resource management tasks (if applicable).

2. Expenditure levels:

The financial regime for water resource management tasks and projects shall be implemented according to the current financial regulations stipulated by authorized state agencies and the specific provisions below:

a) General management costs: These are common costs of the unit directly implementing the project, including: salaries and wage-related benefits (social insurance, health insurance, trade union fees) for the management staff; electricity, telephone, fuel, travel expenses, office supplies, tools, and equipment for the management staff; regular maintenance costs for fixed assets, tools, and equipment of the unit; conference costs for deployment, mid-term review, and final summary meetings; relocation costs; temporary housing construction (or rental) costs for construction forces in the project implementation area; product acceptance and handover costs by the construction unit, and other management-related costs associated with project implementation; determined as follows:

- For self-financed public service units and enterprises participating in the project, general management costs are calculated as a percentage of direct costs, specifically:

+ Group I (including water resource mapping activities; surface and groundwater surveys and assessments): Field work cost 25%, office work cost 20%;

+ Group II (including water resource monitoring and inventory activities): Field work cost 20%, office work cost 20%;

+ Group III (including water resource protection activities, pollution prevention, degradation, and depletion control as specified in item 1.1, part II of the Circular; economic and technical standard setting activities for surveys and assessments): Field work cost 15%, office work cost 15%;

+ For water resource planning activities: Implemented according to the current regulations of the authorized state agency issuing standards for planning and review cost estimates.

- For public service units funded by the budget to cover regular operational costs directly implementing the project, general management costs are capped at 15 million VND/year/project for projects with total direct costs up to 5 billion VND; for projects with total direct costs exceeding 5 billion VND, an additional 0.003 of the increased amount is added for every additional 1 billion VND.

b) Other costs:

- Costs for seminars, reviews, approvals, inspections, and project acceptance are calculated up to a maximum of 1.5% of total direct and general costs. Specific rates follow current financial regulations.

- Other costs such as land and property compensation, environmental protection; physical allowances; personnel and machinery transportation from the unit to the project site; rental of construction equipment and means (if applicable); purchase of materials, experts, scientific cooperation (if applicable), and other relevant expenditures are reimbursed based on actual expenses and current regulations.

c) For the Water Resources Planning and Investigation Center under the Ministry of Natural Resources and Environment, which manages and directs subordinate public service units' projects without receiving regular operational funding from the budget, general management costs are calculated at 5% of direct and general costs for managing and directing project implementation tasks. Specific rates follow current financial regulations.

3. Budget preparation, execution, and settlement:

The preparation, execution, and settlement of state budget funds for economic public service activities in water resource management shall be carried out according to the State Budget Law and current guidance documents issued by the Ministry of Finance. This Circular provides detailed guidance on certain aspects as follows:

3.1. Basis for budget preparation:

a. For tasks with economic and technical standards: The budget is determined based on the volume of work, construction conditions of each area multiplied by the current unit price.

b. For work contents without economic and technical norms: The budget estimate is determined based on the specific volume of work to be carried out, the current state financial regime, and approved by the competent authority.

The budget estimate for implementing projects in water resource management activities includes:

+ Direct costs: Labor costs (wages, salaries, allowances, contributions according to wages), raw materials and supplies costs, tools and equipment costs, energy costs, depreciation of machinery and equipment;

+ General administrative expenses;

+ Other costs.

3.2. Procedure for preparing the budget estimate:

Annually, based on the Prime Minister's Directive on developing the socio-economic development plan and the State budget estimate for the following year, the Circular guiding the preparation of the State budget estimate for the following year issued by the Ministry of Finance, the implementation situation of the previous year's budget estimate, the content and volume of work to be carried out in the planning year, economic and technical norms, the current financial expenditure regime, and the provisions of this Circular;

- At the central level: Units prepare the budget estimate for public service economic activities related to water resource management tasks, accompanied by detailed explanatory notes on the basis of calculation, submitted to the superior management agency for consolidation and reporting to the Ministry or the central agency directly managing for consideration and consolidation into the Ministry's or central agency's budget estimate to be reported to the Ministry of Finance for consolidation and reporting to the Government for consideration and decision by the National Assembly.

- At the local level: Units prepare the budget estimate for public service economic activities related to water resource management tasks, accompanied by detailed explanatory notes on the basis of calculation, submitted to the superior management agency for consideration and consolidation into the agency's budget estimate to be reported to the same-level finance agency for reporting to the People's Council for consideration and decision.

3.3. Implementation of the budget estimate:

The allocation and assignment of the budget estimate to units shall be carried out in accordance with the provisions of the State Budget Law and current guiding documents.

During the implementation process, if there are changes in policies, unit prices, or work volumes leading to changes in the budget estimate, the unit directly implementing the project must submit to the competent authority for approval to adjust the project budget estimate.

The State Treasury at the transaction location shall manage, issue, and settle the public service economic funds for water resource management tasks in accordance with the regulations of the Ministry of Finance on the management, issuance, and settlement of state budget expenditures through the State Treasury.

The funds for implementing tasks and projects in water resource management as stipulated in this Circular shall be reflected and settled in Item 12 Sub-item 11 "Public Service Economic Expenditures" under the corresponding Chapter of Ministries, sectors, localities, and detailed according to the state budget classification.

3.4. Settlement Work:

a) For water resource management tasks: The settlement of tasks shall be carried out based on the actual completed volume within the assigned budget estimate and complete supporting documents as prescribed.

b) For projects: The basis for preparing the final settlement report for completed projects:

+ Decision of the competent state agency approving the task and project budget estimate;

+ Completion acceptance records for each project component;

+ Economic contracts, contract termination statements, or handover records for completed assigned work volumes;

+ Payment vouchers in accordance with the law;

+ Project completion results reports approved by the competent state agency according to the inspection and acceptance regulations issued by the competent authority (including volume and cost): The level that approves the project also inspects and accepts the project and approves the final settlement.

c) Procedure for preparing, reviewing, and auditing the annual final settlement report: At the end of the accounting period, budget units must close their accounting books and prepare the final settlement report. The procedure for preparing the report, forms, submission deadlines, and responsibilities for reviewing the final settlement report shall be implemented in accordance with current regulations.

4. Inspection Work:

Central and local supervisory agencies have the responsibility to cooperate with the same-level finance agencies to regularly and urgently inspect the implementation of assigned tasks; the management, use, and settlement of funds in water resource management activities to ensure proper and effective use of funds.

III. IMPLEMENTATION ORGANIZATION

This Circular takes effect 15 days from the date of publication in the Official Gazette.

In the course of implementation, if there are difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Natural Resources and Environment for research and appropriate amendments.

Place of Receipt:
- Central Office and Party Departments;
- National Assembly's Office;
- Office of the President;
- Office of the Government;
- Supreme People's Court;
- Supreme People's Procuracy;
- Central agencies of mass organizations;
- State Audit Agency;
- State-owned Enterprises: QLBVN, CHKVN-CTCP, HKVN-CTCP, Trực thăng VN; International Airport Vân Đồn;
||| - People's Committees of provinces and centrally-administered cities;
- Provincial Departments of Finance, Taxation Bureaus, State Treasuries of centrally governed cities and provinces;
- Provincial Departments of Natural Resources and Environment of centrally governed cities and provinces;
- Department of Legal Drafting - Ministry of Justice;
- Official Gazette;
- Government Portal; Ministry of Finance Portal;
- Units under the Ministry of Finance, Ministry of Natural Resources and Environment;
- To be filed: VT Ministry of Finance, Ministry of Natural Resources and Environment.