Circular No. 156/1998/TT-BTC guiding, supplementing, and amending the National Budget Index System

CIRCULAR

Guidelines for supplementing and amending the State Budget Classification System

The Ministry of Finance has issued the State Budget Classification System pursuant to Decision No. 280/TC-QĐ-NSNN dated April 15, 1997. After two years of implementation, the State Budget Classification System has achieved certain results, but it also revealed some shortcomings in state budget management. Additionally, over the past two years, the Government and National Assembly have promulgated several new tax laws; changed the management methods of some national programs and goals; and amended certain revenue and expenditure regimes of the state budget. Therefore, the Ministry of Finance provides guidelines to supplement and amend certain Sections - Types - Clauses - Items and Sub-items of the current State Budget Classification System as follows:

I. Regarding Sections

1. Rename Section 009A "Ministry of Home Affairs" to "Ministry of Public Security"

2. Open Section 050A "Ho Chi Minh City University"

3. Open Section 057A "National Council for Compiling the Vietnam Encyclopedia"

4. Rename Section 064A "General Department of Physical Culture and Sports" to "Sports Management Committee"

5. Rename Section 086 (B,C) "Child Protection and Care Board" to "Child Protection and Care Committee"

6. Discontinue Section 108A "Tropical Center". The central government's budget expenditures for the Tropical Center will be accounted for and settled under Section 010A "Ministry of National Defense"

7. Open Section 119A "Vietnam Shipbuilding Corporation"

8. Rename Section 120A "Gold, Precious Stones and Jewelry Corporation" to "Precious Stones and Gold Corporation of Vietnam"

9. Rename Section 124A "Postal and Telecommunications Corporation" to "Vietnam Postal and Telecommunications Corporation"

10. Rename Section 154 (A, B, C, D) "Mixed Economy" to "Mixed Economy Outside State Ownership"

11. Open Section 158 (A, B, C) "Mixed Economy with State Participation"

12. Add new Section codes at the district level

- Open Section 155C "Private Economy"

- Open Section 156C "Collective Economy"

- Open Section 157C "Individual Economy"

13. Add new Section codes at the commune level:

- Open Section 009D "Public Security Board"

- Open Section 010D "Military Command Board"

- Open Section 155D "Private Economy"

- Open Section 156D "Collective Economy"

- Open Section 157D "Individual Economy"

14. Discontinue Section 013D and transfer it to Section 013C

II. Regarding Types - Clauses

1. Type 01 "Agriculture, Forestry, Water Resources"

- Rename Clause 11 "Greening Bare Mountains and Hills Program (327)" to "Five Million Hectares Reforestation Project"

2. Type 05 "Electricity Production and Distribution, Gas, and Water Supply"

- Open Clause 06 "National Clean Water and Rural Environmental Sanitation Program"

3. Rename Type 11 "Science and Technology Activities" to "Science, Technology, and Environment Activities"

- Rename Clause 04 "Information Technology Development Program" to "Information Technology Program"

- Open Clause 07 "Biotechnology Program"

- Open Clause 08 "Materials Technology Program"

- Open Clause 09 "Automation Technology Program"

- Open Clause 10 "Environmental Research and Protection Activities"

4. Type 13 "State Administration and National Security and Social Assurance"

- Open Clause 11 "Crime Prevention Program"

5. Type 15 "Healthcare and Social Activities"

- Rename Clause 04 "Population and Family Planning Program" to "National Population and Family Planning Program"

- Rename Clause 07 "Child Care and Protection Program" to "Child Protection and Care Undertaking"

- Rename Clause 11 "Malaria Control Target" to "Malaria Prevention Target"

- Rename Clause 12 "Goiter Control Target" to "Goiter Prevention Target"

- Rename Clause 14 "Tuberculosis Control Target" to "Tuberculosis Prevention Target"

- Rename Clause 15 "Leprosy Control Target" to "Leprosy Prevention Target"

- Rename Clause 18 "AIDS Prevention Program" to "National HIV/AIDS Prevention Program"

- Rename Clause 20 "Drug Control Program" to "Drug Prevention Action Program"

- Rename Clause 21 "Labor Arrangement and Employment Resolution Program" to "National Employment Target Program until 2000"

- Rename Clause 22 "Specially Hardship Ethnic Minority Assistance Program" to "National Poverty Reduction Target Program from 1998 to 2000"

- Open Clause 23 "Economic and Social Development Program for Particularly Hardship Communes, Mountainous Areas, Remote Areas"

- Open Clause 24 "Child Malnutrition Prevention Target"

- Open Clause 25 "Dengue Fever Prevention Target"

- Open Clause 26 "Mental Health Care Target"

6. Type 16 "Culture and Sports Activities"

- Rename Clause 12 "Other Entertainment Activities" to "Other Cultural Activities"

- Open Clause 20 "High Performance Athlete Training and Talent Development Target"

- Open Clause 21 "Key Sports and Physical Education Centers Construction Target"

7. From Type 01 to Type 20

- Open Clause 99 "Other Programs and Targets" to account for other programs and targets not listed in the Item code directory of Types 01 to 20.

III. Regarding Sub-groups, Items, and Sub-items

* Rename Sub-group 01 "Income Tax and Profit Tax" to "Income Tax and Post-Tax Income"

1. Rename Old Item 002 "Profit Tax" to New Item 002 "Corporate Income Tax" and the following Sub-items:

- Sub-item 01 "Corporate Income Tax of Industry-wide Accounting Units"

- Sub-item 02 "Corporate Income Tax of Non-Industry-wide Accounting Units"

- Sub-item 03 "Profit Tax Arrears Collection of Industry-wide Accounting Units"

- Sub-item 04 "Profit Tax Arrears Collection of Non-Industry-wide Accounting Units"

- Sub-item 15 "Others"

2. Open Item 004 "Post-Tax Income" and the following Sub-items:

- Sub-item 01 "Post-Tax Income"

- Sub-item 02 "Non-Profit Enterprise Surplus"

- Sub-item 15 "Others"

3. Rename Old Item 014 "Turnover Tax" to New Item 014 "Value Added Tax" and the following Sub-items:

- Sub-item 01 "Value Added Tax on Domestic Production and Sales"

- Sub-item 02 "Value Added Tax on Imported Goods (excluding Value Added Tax on Land Border Imports)"

- Sub-item 03 "Value Added Tax on Land Border Imports"

- Sub-item 04 "Turnover Tax Arrears Collection"

- Sub-item 15 "Others"

4. Item 015 "Specific Consumption Tax", discontinue old Sub-items and open new Sub-items as follows:

- Subitem 01 "Domestic goods produced, traded, and services regulated by the central state budget at 100% according to the State Budget Law"

- Subitem 02 "Imported goods (excluding import duties on goods through land border crossings)"

- Subitem 04 "Domestic goods produced, traded, and services regulated between budgets of different levels of local authorities according to the State Budget Law"

- Sub-item 15 "Others"

5. Delete Item 017 "Slaughter Tax"

6. Rename Item 025 "Capital Recovery from Enterprises" to "Capital Recovery from State-Owned Enterprises" - Open Subitem 02 "Revenue from Liquidation of Fixed Assets"

7. Item 026 "Additional Fees" opens the following subitems:

- Subitem 05 "Additional Fuel Oil Fee"

- Subitem 06 "Additional Fertilizer Fee"

- Subitem 07 "Additional Coffee Fee"

- Subitem 08 "Additional Polyvinyl Chloride (PVC) Product Fee"

8. Item 029 "Revenue from Public Land Funds and State-owned Land" deletes old subitems and opens the following subitems:

- Subitem 01 "Revenue from Public Benefits from Public Land Fund"

- Subitem 02 "Revenue from Public Benefits from State-owned Land"

- Subitem 03 "Compensation for Damage when the State Recovers Land"

- Sub-item 15 "Others"

* Rename Subgroup 07 "Interest Revenue from Domestic Loans" to "Interest Revenue from Domestic Investment Loans and State Participation in Capital Contributions"

9. Delete Old Item 030 "Interest Revenue from Domestic Loans" and open New Item 030 "Interest Revenue from Domestic Investment Loans and State Participation in Capital Contributions" and the following subitems:

- Subitem 01 "Interest Revenue from Domestic Investment Loans using Domestic Sources"

- Subitem 02 "Interest Revenue from Domestic Investment Loans using Non-Reimbursable Aid"

- Subitem 03 "Interest Revenue from Domestic Investment Loans using Foreign Borrowing"

- Subitem 04 "Interest Revenue from Domestic Investment Loans using Domestic Sources through the State Bank System"

- Subitem 05 "Interest Revenue from Domestic Investment Loans using Aid through the State Bank System"

- Subitem 06 "Interest Revenue from Domestic Investment Loans using Foreign Borrowing through the State Bank System"

- Subitem 07 "Interest Revenue from State Participation in Capital Contributions"

- Subitem 08 "Difference in Income and Expenditure of the State Bank"

- Sub-item 15 "Others"

10. Rename Item 031 "Interest Revenue from Foreign Loans" to "Interest Revenue from Foreign Loans and State Participation in Capital Contributions" retain original names of old subitems and open the following new subitem:

- Subitem 04 "Interest Revenue from State Participation in Capital Contributions"

11. Item 032 "Transport Fees"

- Rename Subitem 01 "Revenue from Fuel Oil" to "Transport Fees from Fuel Oil"

12. Item 039 "Agricultural Fees, Health Fees, and Environmental Fees"

- Open Subitem 07 "Drug and Cosmetic Testing Fees"

13. Item 046 "Administrative Fees"

- Open Subitem 11 "Civil Registration Fees"

14. Item 047 "Land Administration Fees"

- Open Subitem 03 "Land Registration and Certificate Issuance Fees"

15. Item 052 "Seizure Revenue" deletes old subitems and opens the following new subitems:

- Subitem 01 "Seizure Revenue from Anti-Smuggling Operations Conducted by the Tax Department"

- Subitem 02 "Other Seizure Revenue from Anti-Smuggling Operations Conducted by the Tax Department"

- Subitem 03 "Seizure Revenue from Anti-Smuggling Operations Conducted by Customs"

- Subitem 04 "Other Seizure Revenue from Anti-Smuggling Operations Conducted by Customs"

- Subitem 05 "Seizure Revenue from Anti-Smuggling Operations Conducted by Market Management Agencies"

- Subitem 06 "Seizure Revenue Pursuant to Court Decisions and Enforcement Agencies"

- Subitem 07 "Seizure Revenue from Anti-Smuggling Operations Conducted by Other Departments"

- Sub-item 15 "Others"

16. Item 062 "Other Revenue" and opens the following additional subitems:

- Subitem 04 "Other Revenue of the Tax Department"

- Subitem 05 "Other Revenue of the Customs Department"

17. Item 077 "Principal Loan Repayment Revenue for Development Investment" deletes old subitems and opens the following new subitems:

- Subitem 01 "Principal Loan Repayment Revenue for Development Investment using Domestic Sources"

- Subitem 02 "Principal Loan Repayment Revenue for Development Investment using Non-Reimbursable Aid"

- Subitem 03 "Principal Loan Repayment Revenue for Development Investment using Foreign Borrowing"

- Subitem 04 "Principal Loan Repayment Revenue for Development Investment using Domestic Sources through the State Bank System"

- Subitem 05 "Principal Loan Repayment Revenue for Development Investment using Aid through the State Bank System"

- Subitem 06 "Principal Loan Repayment Revenue for Development Investment using Foreign Borrowing through the State Bank System"

- Sub-item 15 "Others"

18. Delete Item 078 "Principal Loan Repayment Revenue for Other Purposes"

19. Item 110 "Office Supplies"

- Delete Subitem 02 "Books, Documents, and Equipment for Professional Work" and transfer it to Item 119, new Subitem 07 or Item 145, new Subitem 11.

20. Delete Old Item 107 "Expenditure for Village Cadres" and open New Item 107 "Expenditure for Current Village, Commune, and Ward Cadres" and the following subitems:

- Subitem 01 "Living Allowance"

- Subitem 02 "Various Allowances"

- Subitem 03 "Activity Fees for Deputy Heads of Mass Organizations"

- Sub-item 15 "Others"

21. Item 111 "Information, Propaganda, and Communication"

- Open Subitem 11 "Funding for Legal Education Propaganda According to Decision No. 03/1998/QĐ-TTg dated January 7, 1998 of the Government"

- Open Subitem 12 "Funding for Legal Libraries in Villages, Towns, and Urban Areas According to Decision No. 1067/QĐ-TTg dated November 25, 1998 of the Government"

22. Item 112 "Conference Expenses" - Open Subitem 07 "Meal Expense Reimbursement"

23. Item 113 "Travel Expenses"

- Rename Subitem 02 "Accommodation Allowance" to "Travel Expense Allowance"

- Open Subitem 04 "Travel Expense Allocation"

- Open Subitem 05 "Travel Expenses for Village Chiefs in Mountainous Areas"

24. Item 114 "Lease Expenses"

- Rename Subitem 05 "Foreign Expert Hire" to "Foreign Expert and Lecturer Hire"

- Rename Subitem 06 "Domestic Expert Hire" to "Domestic Expert and Lecturer Hire"

25. Item 119 "Professional Expenses of Each Sector"

- Rename Subitem 01 "Supplies" to "Purchase of Goods and Supplies for Professional Use of Each Sector"

- Rename Subitem 03 "Printing Stamps" to "Purchase and Printing of Stamps for Professional Use of the Sector"

- Open Subitem 06 "Books, Documents, and Equipment for Professional Use of the Sector" (Not Fixed Assets)

- Open Subitem 07 "Purchase of Livestock for Professional Activities of the Sector"

- Open Subitem 12 "Confidential Expenses"

- Rename Subitem 14 "Contract Payment with External Parties for Investment, Survey, Planning, Scientific Research..." to "Contract Payment with External Parties"

26. Item 124 "Retirement and Social Insurance Benefit Payments"

- Rename Subitem 05 "Work-related accidents and occupational diseases" to "Compensation for work-related accidents and occupational diseases and assistance for persons with work-related injuries".

27. Remove Item 129 "Costs for labor resettlement" and transfer the content of costs for labor resettlement to Item 140 "Support and job placement costs".

28. Open Item 130 "Refund of Value Added Tax" and the following subitems:

- Subitem 01 "Refund of Value Added Tax on domestic production and business"

- Subitem 02 "Refund of Value Added Tax on imported goods"

- Sub-item 15 "Others"

29. Item 134 "Other Costs"

- Remove Subitem 07 "Costs for printing and exchanging money"

- Remove Subitem 12 "Costs for overseas representative offices" (allocate costs to the appropriate item or subitem).

- Open Subitem 13 "Entertainment expenses"

30. Item 136 "Interest Payments on Foreign Loans" reorganize the subitems as follows:

- Subitem 01 "Interest payments to international financial and monetary organizations"

- Subitem 02 "Interest payments to foreign governments and financial credit institutions"

- Subitem 03 "Interest payments to foreign merchants"

- Subitem 04 "Issuance of bonds on international capital markets"

- Sub-item 15 "Others"

31. Rename old Item 140 "Job Placement Support Costs" to new Item 140 "Support and Job Placement Costs" and the following subitems:

- Subitem 01 "Support for employment service centers and rehabilitation"

- Subitem 02 "Support for job placement for war invalids and disabled persons"

- Subitem 03 "Support for businesses with many female workers"

- Subitem 04 "Training cost support"

- Subitem 05 "Labor resettlement costs in state-owned enterprises"

- Subitem 06 "Labor resettlement costs in administrative and public service sectors"

- Subitem 07 "Severance pay for workers returning from abroad"

- Sub-item 15 "Others"

32. Item 141 "Capital Support for State-Owned Enterprises"

- Open Subitem 03 "Support for Public Welfare Enterprises"

33. Open Item 142 "Support for Enterprises Implementing Shareholding Reform"

- Subitem 01 "Support for Enterprises Implementing Shareholding Reform"

- Sub-item 15 "Others"

34. Item 145 "Procurement of Assets for Professional Work"

- Rename Subitem 05 "Wooden Items" to "Wooden, Iron, Bamboo, Rattan, Plastic (High Quality)"

- Open Subitem 11 "Books, Documents, and Equipment for Professional Work".

35. Item 151 "Investment and Development Loans" remove old subitems and open new subitems as follows:

- Subitem 01 "Loans through Domestic Investment and Development System using Domestic Capital"

- Subitem 02 "Loans through Domestic Investment and Development System using Non-Reimbursable Aid"

- Subitem 03 "Loans through Domestic Investment and Development System using Foreign Debt"

- Subitem 04 "Loans through State Bank System using Domestic Capital"

- Subitem 05 "Loans through State Bank System using Aid"

- Subitem 06 "Loans through State Bank System using Foreign Debt".

- Sub-item 15 "Others"

36. Remove Item 152 "Loans for Other Purposes"

37. Item 153 "Support for Funds"

- Open Subitem 02 "Support for the National Fund for Employment Resolution"

IV. Change the code number of the category name "Revenue Item - Expenditure Item outside the State Budget" to the code number of the category "Temporary Revenue Item, Temporary Expenditure Item not included in the State Budget Balance":

To facilitate the application of computer programs in state budget management and ensure consistency in defining the category code number of Temporary Revenue Item, Temporary Expenditure Item not included in the State Budget Balance and the code number of the category Temporary Revenue Item, Temporary Expenditure Item in the State Budget Balance; now change the code number of the category Temporary Revenue Item, Temporary Expenditure Item not included in the State Budget Balance from two digits to three digits, specifically as follows:

1. Code number of the category Temporary Revenue Item not included in the State Budget Balance:

- Item 801 "Temporary State Budget Revenue"

- Item 802 "Borrowing from the State Bank"

- Item 803 "Borrowing from the Financial Reserve Fund"

- Item 804 "Borrowing from other funds"

- Item 805 "Borrowing from the State Treasury"

- Item 810 "Other Borrowings"

2. Code number of the category Temporary Expenditure Item not included in the State Budget Balance

- Item 901 "Temporary Administrative and Public Service Expenditure"

- Item 902 "Temporary Construction Expenditure through the Investment and Development System"

- Item 903 "Temporary Forest Plantation Project Expenditure"

- Item 904 "Temporary Expenditure 773"

- Item 906 "Temporary Expenditure C, K"

- Item 907 "Temporary Forestry and Resettlement Expenditure" (including temporary expenditure for people's forestry services)

- Item 909 "Temporary Railway Transportation Expenditure"

- Item 910 "Temporary Geological Survey Expenditure"

- Item 911 "Temporary Business Expenditure"

- Item 912 "Temporary VAT Refund Expenditure"

- Item 920 "Other Temporary Expenditures"

V. Remove the code number of the category of provinces and centrally administered cities of the Item List of the State Budget issued according to Decision No. 280/TC-QĐ-NSNN dated April 15, 1997 of the Ministry of Finance and open the code number of the category of provinces and centrally administered cities according to Decision No. 28/1998/QĐ-TCTK dated January 24, 1998 of the General Statistics Office as follows:

This Circular takes effect from January 1, 1999. In the course of implementation, if there are any difficulties, please submit a letter to the Ministry of Finance for the Ministry of Finance to study and amend./.