Circular No. 126/2007/TT-BTC guides the preparation of budgets, use, and settlement of expenses for organizing compensation, support, and resettlement for transportation construction projects in administrative units within difficult areas.

CIRCULAR

Guidelines for the preparation of budgets, utilization, and settlement of expenses for the implementation of compensation, support, and resettlement for construction projects of transportation works on the territory of administrative units in difficult areas

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Based on the Land Law dated November 26, 2003;

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 Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the State expropriates land;

Pursuant to Decree No. 17/2006/NĐ-CP dated January 27, 2006 of the Government amending and supplementing certain articles of Decrees guiding the implementation of the Land Law and Decree No. 187/2004/NĐ-CP on the conversion of state-owned enterprises into joint-stock companies;

Pursuant to Decision No. 30/2007/QĐ-TTg dated March 5, 2007 of the Prime Minister promulgating the list of administrative units in difficult areas;

Implementing the guidance of the Prime Minister in Circular No. 3103/VPCP-CN dated June 7, 2007 of the Government Office;

The Ministry of Finance guides the preparation of budgets, utilization, and settlement of expenses for the implementation of compensation, support, and resettlement for construction projects of transportation works on the territory of administrative units in difficult areas as follows:

Part I

GENERAL PROVISIONS

1. This Circular guides the preparation of budgets, utilization, and settlement of expenses for the implementation of compensation, support, and resettlement for construction projects of transportation works on the territory of administrative units in difficult areas according to Decision No. 30/2007/QĐ-TTg dated March 5, 2007 of the Prime Minister promulgating the list of administrative units in difficult areas (hereinafter referred to as Decision No. 30/2007/QĐ-TTg).

2. Organizations entrusted with the task of compensation, support, and resettlement for construction projects of transportation works on the territory of administrative units not included in the list of difficult areas according to Decision No. 30/2007/QĐ-TTg shall not apply the guidelines set forth in this Circular.

Part II

SPECIFIC PROVISIONS .

1. Organizations entrusted with the task of compensation, support, and resettlement shall base their budget preparation for the implementation of compensation, support, and resettlement on the content and expenditure levels specified in Points 1 and 2 of Part VII of Circular No. 116/2004/TT-BTC dated December 7, 2004 of the Ministry of Finance guiding the implementation of Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the State expropriates land, and the actual workload in the implementation process, and submit it to the Department of Finance for review and approval by the Provincial People's Committee.

In cases where immediate implementation of compensation, support, and resettlement work is required but the budget for such work has not yet been approved, the organization entrusted with the task of compensation, support, and resettlement may temporarily borrow funds from the project sponsor for use in actual work.

2. After the budget for the implementation of compensation, support, and resettlement work has been approved by the Provincial People's Committee, the organization entrusted with the task of compensation, support, and resettlement shall transfer one copy to the project sponsor for coordination in implementation.

Based on the approved budget for the implementation of compensation, support, and resettlement work of the project, the project sponsor is responsible for transferring the entire amount of funds allocated for the implementation of compensation, support, and resettlement work of the project according to the approved budget to the organization entrusted with the task for use in the implementation of compensation, support, and resettlement work of the project.

3. The head of the organization entrusted with the task of compensation, support, and resettlement is responsible for managing and using the funds allocated for the implementation of compensation, support, and resettlement work of the project in accordance with the policies and regulations of the State; they are authorized to decide on expenditures for specific tasks according to the approved budget content and expenditure levels.

If the approved budget is insufficient for actual expenditures, the organization entrusted with the task of compensation, support, and resettlement must prepare a supplementary budget, submit it to the Department of Finance for review and approval of additional funding by the Provincial People's Committee, and simultaneously inform the project sponsor for coordination in implementation.
The use and accounting of these funds must comply with current regulations on the management and use of state budget funds. Any fictitious or duplicate expenditures in the implementation of work are strictly prohibited.

4. Within thirty days of completing the implementation of compensation, support, and resettlement work of the project, the organization entrusted with the task of compensation, support, and resettlement is responsible for:

- Submitting a final report on all expenses incurred for the implementation of compensation, support, and resettlement work of the project received and used to the Department of Finance for approval according to current regulations on the management and use of state budget funds.

- Transferring one copy of the approved final report and related documentation to the project sponsor for inclusion in the project's final report for settlement of these expenses.
If the actual expenditures are less than the received funds, the difference should be returned to the project sponsor.

5. The project sponsor is responsible for managing the final reports on expenses for the implementation of compensation, support, and resettlement work of the project; consolidating them into the project's compensation, support, and resettlement costs for settlement in the total investment cost of the project.

PART III EFFECTIVE DATE OF IMPLEMENTATION

This Circular shall take effect fifteen days after its publication in the Official Gazette. During the implementation of this Circular, any difficulties that arise should be promptly reported to the Ministry of Finance for study and resolution./.