Circular No. 121/2004/TT-BTC of the Ministry of Finance guiding the work of preparing budgets, managing, disbursing, settling accounts, and making payments from state budget funds to implement Decision No. 134/2004/QĐ-TTg dated July 20, 2004 of the Prime Minister.

CIRCULAR

Issued by the Ministry of Finance on December 16, 2004, guiding the work of preparing budgets, managing, disbursing, settling accounts, and making payments from state budget funds to implement Decision No. 134/2004/QĐ-TTg dated July 20, 2004 of the Prime Minister

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

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance

Pursuant to Decision No. 134/2004/QĐ-TTg dated July 20, 2004 of the Prime Minister on certain support policies for production land, residential land, housing, and drinking water for poor ethnic minority households with difficult living conditions

The Ministry of Finance guides the work of preparing budgets, managing, disbursing, settling accounts, and making payments from state budget funds to implement Decision No. 134/2004/QĐ-TTg dated July 20, 2004 of the Prime Minister as follows

I. GENERAL PROVISIONS

1. This Circular applies to the preparation of budgets, management, disbursement, settlement of accounts, and payment of state budget funds to implement the policy of supporting production land, residential land, housing, and drinking water for poor ethnic minority households with difficult living conditions as prescribed in Decision No. 134/2004/QĐ-TTg dated July 20, 2004 of the Prime Minister (hereinafter referred to as Decision No. 134/2004/QĐ-TTg).

2. The beneficiaries, scope of application, principles of support, and levels of support shall be implemented according to the Inter-Ministerial Circular No. 819/2004/TTLT/UBDT-KHĐT-TC-XD-NNPTNT dated November 10, 2004 of the Joint Ministries of the Committee for Ethnic Minorities - Planning and Investment - Finance - Construction - Agriculture and Rural Development.

3. The level of support for production land, residential land, housing, and drinking water for poor ethnic minority households with difficult living conditions as prescribed in Decision No. 134/2004/QĐ-TTg is the minimum level; based on the actual situation at the locality, the People's Committee of the province (hereinafter referred to as the Provincial People's Committee) shall decide the specific level of support for each policy, but it must ensure that it is not lower than the central government's support level.

4. The preparation of budgets, management, disbursement, settlement of accounts, and payment of state budget funds for support shall be carried out in accordance with the provisions of the Law on State Budget, Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government, Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance, and the provisions of this Circular.

5. Based on the supplementary budget targets from higher-level budgets allocated to lower-level budgets to implement Decision No. 134/2004/QĐ-TTg which have been assigned by the competent authority, quarterly, the financial agencies of the higher-level governments shall supplement the targeted budgets to the lower-level budgets according to the progress of implementation.

6. The State Treasury shall guide the People's Committees of communes to open deposit accounts at the State Treasury of the district where transactions take place to receive state budget funds for implementing Decision No. 134/2004/QĐ-TTg to settle accounts for households.

II. SPECIFIC PROVISIONS

1. Preparation of budgets and allocation of funds:

1.1. Based on the number of ethnic minority poor households eligible for support as prescribed in Decision No. 134/2004/QĐ-TTg which have been reviewed and proposed from the grassroots level; the number of villages and projects for centralized water supply facilities that are eligible for support and have been decided by the competent authority, the Department of Finance and the Department of Planning and Investment shall cooperate with relevant agencies to prepare the budget for implementing Decision No. 134/2004/QĐ-TTg at the local level and propose the budget for requesting central government support for each policy; clearly identifying the sources of funding: support from the central government budget, local government budget ensuring at least 20% of the central government support level, and other sources of mobilization according to regulations. The budget and financial resources for implementing the tasks under Decision No. 134/2004/QĐ-TTg shall be phased according to the local organization plan, ensuring feasibility and suitability to local conditions; report to the Provincial People's Committee for submission to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and presentation to the Government and the National Assembly for decision on supplementary targeted budgets for each province in the annual budget.

1.2. Based on the supplementary targeted budget assigned by the Prime Minister, local government budget, and other mobilized sources to implement the policies as prescribed in Decision No. 134/2004/QĐ-TTg at the local level, the Department of Finance shall cooperate with related units to develop detailed budget allocation plans for each task and each district, county, town, city within the province (hereinafter referred to as district) to be submitted to the Provincial People's Committee for approval by the Provincial People's Council in the annual local budget.

1.3. Based on the resolution of the Provincial People's Council, the Provincial People's Committee shall allocate the budget to the districts (detailed by each task). Based on the budget allocated by the Provincial People's Committee, the District People's Committee shall decide on the allocation and notify each commune, ward, town (hereinafter referred to as commune) in detail by each task and each household benefiting according to the list decided by the competent authority.

1.4. Based on the decision of the District People's Committee, the Commune People's Committee shall publicly announce the level of support to each village and each household according to each policy and supported regime.

2. Management, Disbursement, and Payment:

The disbursement and payment of funds to implement the policies as prescribed in Decision No. 134/2004/QĐ-TTg for units and individual households must be strict, ensuring the correct objectives and correct recipients, especially for direct cash (or in-kind) payments to households, the Commune People's Committee must establish a list for each household to sign and receive, and fully comply with procedures and documents as prescribed. Specifically:

2.1. Regarding the implementation of housing support policies:

2.1.1. For households receiving housing support as prescribed in Decision No. 134/2004/QĐ-TTg:

- In cases where households self-implement but require temporary funding to purchase materials, the People's Committee of the commune shall compile a list of households requesting temporary funding and submit it to the Financial Department of the district for the basis of temporary funding. Based on the list of households requesting temporary funding and the request of the People's Committee of the commune, the Financial Department of the district shall process the temporary funding for the People's Committee of the commune through the State Treasury so that the People's Committee of the commune can provide temporary funding to the households. The maximum amount of temporary funding is equal to 60% of the state budget support for each household.

Upon completion of the project, based on the acceptance results for each household with confirmation from the People's Committee of the commune, the Financial Department of the district shall issue payment orders through the State Treasury to pay the People's Committee of the commune to settle accounts with the households; simultaneously, procedures shall be carried out to recover the temporarily funded amount (if any).

The maximum settlement amount for households shall not exceed the state support level approved by the competent authority for each household (the state budget supports a minimum of six million VND, including: five million VND from the central budget; one million VND from the local budget, and other sources of mobilization).

- In cases where households have a need for material supply and obtain the consent of the competent authority, the People's Committee of the commune shall compile and register the material needs of the households (detailed classification of materials according to each household) and submit it to the People's Committee of the district for consideration and consolidation. Based on the quantity of materials registered by households in communes, specific conditions of each commune within the area, the People's Committee of the district (or units assigned by the People's Committee of the district) shall sign contracts with material supply units, which will implement the supply to households in villages.

Based on the actual quantity of materials supplied to households recorded in the handover protocol between the supply unit and each household (signed by the head of the household and confirmed by the People's Committee of the commune), and the request of the People's Committee of the commune, the Financial Department of the district shall prepare payment orders to be sent to the State Treasury for payment to the material supply units according to current regulations. The maximum settlement amount shall not exceed the state support level approved by the competent authority for each household.

- For areas with forests and with the consent of the competent authority regarding the provision of wood support for households to build houses: The Financial Department of the district shall cooperate with relevant units to determine the value of the wood provided to households based on the volume of wood supplied, reflecting this in the budget according to the guidance in Clause 3 - Part II of this Circular. The value of the wood support for households is considered part of the local government's support for households. Costs for logging and transporting wood (if any) shall be covered by the local government budget.

2.1.2. For households that have obtained deferred repayment loans for house construction as stipulated in Decision No. 105/2002/QĐ-TTg dated August 2, 2002 or Decision No. 154/2002/QĐ-TTg dated November 12, 2004 of the Prime Minister:

- Based on the list of households supported for housing as stipulated in Decision No. 134/2004/QĐ-TTg approved by the competent authority and the list of households that have taken out deferred repayment loans for house construction as stipulated in Decision No. 105/2002/QĐ-TTg or Decision No. 154/2002/QĐ-TTg of the Prime Minister, the People's Committee of the commune shall compile a list of households with outstanding loans in the commune and report it to the Financial Department of the district. The Financial Department of the district shall assist the People's Committee of the district in reviewing and consolidating requests for the Social Policy Bank to confirm the outstanding loan balance at the time of compiling the list (details for each household, principal balance, interest balance). On this basis, the Financial Department of the district shall review and consolidate the amount of funds to be paid to the Social Policy Bank for approval by the People's Committee of the district.

- Based on the decision of the People's Committee of the district, the Financial Department of the district shall prepare payment orders to be sent to the State Treasury for payment to the Social Policy Bank, and simultaneously issue a notification to the People's Committee of the commune along with a list of payments made to the Social Policy Bank for each household; the People's Committee of the commune shall notify each household in writing to proceed with the discharge of the promissory note (in the case of full repayment) or reduction of the deferred repayment loan amount according to the promissory note (in the case of partial repayment) with the Social Policy Bank.

The maximum payment to the Social Policy Bank shall not exceed the outstanding loan balance (principal and interest) of each household at the time of payment and shall not exceed the state support level approved by the competent authority for each household.

If the state budget support exceeds the remaining outstanding loan balance (principal and interest) of each household, the difference shall be disbursed in cash to the households. Based on the documents confirmed by the Social Policy Bank, the Financial Department of the district shall verify and determine the amount of funds to be disbursed to each household and implement disbursement through payment orders sent to the State Treasury for the People's Committee of the commune to distribute to the households.

2.2. Regarding the implementation of water supply support policies:

Based on the list of households supported for water supply approved by the competent authority and the registration of households regarding the method of implementation, the People's Committee of the commune shall compile the demand and classify it according to the method of implementation (households receiving water containers, making water tanks themselves, digging wells or creating other water sources) and submit it to the Financial Department of the district for verification, control, and allocation of funds for implementation. The settlement amount shall not exceed the state support level approved by the competent authority for each household. The allocation and settlement for beneficiaries according to the methods of implementation are as follows:

2.2.1. For households receiving water containers:

Based on the registration list of households, the supply contract between the unit assigned by the competent authority and the water container supply unit, the actual quantity of water containers supplied to households recorded in the handover protocol between the supply unit and each household (signed by the head of the household and confirmed by the People's Committee of the commune), and the request of the People's Committee of the commune, the Financial Department of the district shall verify and prepare payment orders to be sent to the State Treasury for payment to the water container supply units.

2.2.2. For households making their own water tanks:

- On the basis of the registration list of households and units assigned by the competent authority to supply cement to each household in the village according to the agreed quantity, when supplying cement to each household, a delivery sheet recording the amount of cement delivered to each household must be established for the households to sign and acknowledge, and the People's Committee of the commune to confirm and send to the Department of Finance of the district as the basis for payment.

- Based on the delivery sheet of the actual amount of cement supplied to households, the price of cement sold to villages as agreed upon, and the proposal of the People's Committee of the commune, the Department of Finance of the district shall issue a payment order to be sent to the State Treasury for payment to the cement supply unit according to the current regulations.

2.2.3. For households that dig their own wells or create other water sources:

- Based on the registration list of households, the People's Committee of the commune shall direct local associations to cooperate with the community to guide and assist households in implementing these activities.

- The Department of Finance of the district, based on the acceptance results from the commune, shall review and implement the issuance of payment orders through the State Treasury to the People's Committee of the commune for payment to households.

2.3. Regarding the implementation of support policies for production land and residential land:

Based on the plan for solving residential and production land issues for poor ethnic minority households lacking such lands, appropriate mechanisms for disbursement and payment shall be provided depending on the method of implementation. The payment amount corresponds to the actual area cleared (or allocated, or transferred), and shall not exceed the maximum level of state support approved by the competent authority. Payment must comply with the following principles:

2.3.1. For self-cleared land:

- The People's Committee of the district shall direct the People's Committee of the commune to coordinate with the specialized agencies of the district tasked with guiding ethnic minority households to organize clearing of land in accordance with the land use planning of each commune and in line with the agricultural practices of the ethnic groups.

- Based on the clearing results of households, the People's Committee of the commune and the specialized agency tasked with this responsibility shall conduct acceptance of the volume of work and prepare an acceptance record.

- Based on the list of households organizing self-clearing, the acceptance record of the cleared area, and the request letter of the People's Committee of the commune, the Department of Finance of the district shall verify and issue a payment order through the State Treasury to the People's Committee of the commune for payment to households.

2.3.2. For forestry and farm enterprises assigned to organize production for ethnic minority households:

- The People's Committee of the district shall direct the People's Committee of the commune to coordinate with forestry and farm enterprises to organize clearing or production activities suitable to the agricultural practices of the ethnic groups.

- Based on the results of organizing production for households by forestry and farm enterprises, the People's Committee of the commune and the specialized agency (if assigned by the People's Committee of the district) shall conduct acceptance of the volume of work, prepare an acceptance record, and compile a list of households organized for production by forestry and farm enterprises (with signatures of the households) to be sent to the Department of Finance of the district as the basis for payment.

- Based on the list of households organized for production by forestry and farm enterprises, the acceptance record of the organized production area, and the request letter of the forestry and farm enterprise, the Department of Finance of the district shall verify and issue a payment order to be sent to the State Treasury for direct payment to the forestry and farm enterprises.

2.3.3. For transferred land:

- The People's Committee of the district shall assign a specialized unit to coordinate with the People's Committee of the commune and households to determine the area of transferred land of households, and establish a handover record (with confirmation from all parties involved).

- Based on the system of allowances, standards, lists, and areas of transferred land of households, the handover record, the Department of Finance of the district shall verify and issue a payment order through the State Treasury to the People's Committee of the commune for payment to households with transferred land.

2.4. For concentrated land clearing projects or centralized water supply projects in villages:

The advance payment and capital settlement for concentrated land clearing projects or centralized water supply projects shall be carried out according to the regulations applicable to infrastructure projects of communes under Program 135 (as stipulated in Circular No. 47/1999/TT-BTC dated May 5, 1999 of the Ministry of Finance and Joint Circular No. 666/2001/TTLT-BKH-UBDTMN-TC-XD dated August 23, 2001 guiding investment management and construction of infrastructure projects under Program 135).

2.5 For land funds recovered from forestry and farm enterprises, businesses: Implementation shall follow current regulations.

3. Regarding accounting reports and final settlements:

- The budgetary funds from the central government supporting the implementation of poverty alleviation policies for ethnic minorities as stipulated in Decision No. 134/2004/QĐ-TTg shall be accounted for and settled according to the current regulations for local budget revenue and expenditure.

The People's Committees of districts and communes, the Departments of Finance of districts have the responsibility to coordinate with the State Treasury and relevant agencies to monitor the implementation of policy disbursements as stipulated in Decision No. 134/2004/QĐ-TTg; monthly, the People's Committee of the commune and the Department of Finance of the district shall report to the People's Committee of the district and the Department of Finance about the implementation results of the program, progress of capital payments, and the Department of Finance shall compile and report to the People's Committee of the province.

Quarterly, the People's Committees of provinces and cities shall report on the progress of implementation, and at year-end, they shall separately report on budget settlements and other financial resources raised according to the regulations implementing Decision No. 134/2004/QĐ-TTg of the Prime Minister to the National Ethnic Minorities Commission, the Ministry of Finance, and the Ministry of Planning and Investment for consolidation and reporting to the Government and the National Assembly.

III. IMPLEMENTATION PROVISIONS

This Circular shall take effect fifteen days after its publication in the Official Gazette. During implementation, if there are difficulties, please reflect them to the Ministry of Finance for timely guidance and resolution.