Circular No. 16-TC/NSNN guiding, supplementing, and amending the State Budget Catalogue

CIRCULAR

Guidelines for supplementing and amending the State budget structure

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The Ministry of Finance issued Circular 68/TC-NSNN on August 15, 1994, regarding the systematization and supplementation and amendment of certain Chapters and Sections of the current State budget structure. This Circular took effect from January 1, 1994. To date, due to changes in financial management and State budget management, the Ministry of Finance continues to supplement and amend certain Chapters and Sections of the State budget structure and provides guidance on accounting and settlement of State budget revenues and expenditures arising as follows:

A/ REGARDING CHAPTERS:

1/ Establish a new Chapter 36A titled "State Audit Office" for accounting, bookkeeping, and settlement of State budget expenditures of the State Audit Office. All State budget expenditures arising from January 1, 1995 onwards shall be accounted for and settled under Chapter 36A corresponding types, items, sub-items, and sections of the State budget structure.

2/ Repeal Chapter 81A "Management Board of Ho Chi Minh City Export Processing Zone" and Chapter 82A "Management Board of Hai Phong City Export Processing Zone," and establish a new Chapter 81A titled "Management Board of Export Processing Zones" for accounting and monitoring State budget allocations to Management Boards of Export Processing Zones. State budget allocations arising from January 1, 1995 for Management Boards of Export Processing Zones shall be accounted for and settled under the new Chapter 81A "Management Board of Export Processing Zones" corresponding types, items, sub-items, and sections of the current State budget structure.

B/ REGARDING REVENUE SECTIONS:

1/ To account for and monitor customs duties collected into the State budget from all goods permitted to be exported and imported through land borders (including formal and informal trade), the following Sections are established:

- Establish Section 06 "Customs Duties on Land Border Exports"

- Establish Section 07 "Customs Duties on Land Border Imports"

- Establish Section 32 "Other Revenue from Customs Duties on Land Border Trade"

To avoid confusion in payment receipts, the receipt must clearly state: "Payment of customs duties on land border trade or other revenue from customs duties on land border trade." Goods permitted to be exported and imported via air and sea routes will still be accounted for under Section 33 "Other Revenue from Customs Duties" of the current State budget structure.

2/ Establish a new Section 15 titled "Social Insurance Revenue" for accounting, bookkeeping, and settlement of social insurance amounts deducted from administrative and public service units funded from local budgets submitted to the State budget by Provincial Departments of Finance and Price Control, and social insurance amounts deducted from administrative and public service units funded from the central budget submitted to the State budget (central budget) to be transferred back to the Social Insurance Fund according to Circular No. 3478/TC-HCVX dated December 27, 1994, of the Ministry of Finance.

- When submitting social insurance to the State budget, the payment receipt should be recorded under Chapter 99, type 13, item 02, sub-item 03, Section 15 "Social Insurance Revenue" (Central budget receives 100%).

- When deducting from quarterly budget plans of accounting units, accounting and settlement shall be made under corresponding types, items, sub-items, Section 68 "Social Insurance Expenditure."

- When transferring social insurance from the State budget to the Social Insurance Fund managed by the Ministry of Labor, Invalids, and Social Affairs for pension payments and social policies, accounting and bookkeeping shall be made under Chapter 99A, type 13, item 02, sub-item 03, Section 68 "Social Insurance Expenditure." At year-end when preparing the final settlement report of the State budget to submit to the National Assembly, the central budget will be excluded to ensure that the settlement of State budget revenue and expenditure does not overlap.

When submitting proceeds from the sale of State-owned property (including land use rights fees based on State-owned property) to the State budget, the payment receipt should record under the corresponding Chapter type 14, item 1, sub-item 9, Section 40 "Revenue from Sale of State-Owned Property."

3/ Section 40 "Revenue from Sale of State-Owned Property" for accounting, bookkeeping, and settlement of proceeds from the sale of State-owned property to specified entities under Decree No. 61/CP dated July 5, 1994, of the Government. In 1995, based on Decision No. 829/TTg dated December 30, 1994, and Circular No. 06/TC-NSNN dated January 6, 1995, of the Ministry of Finance, revenue from land use rights fees based on State-owned property arising from January 1, 1995, will be accounted for, booked, and settled under Section 40 "Revenue from Sale of State-Owned Property."

When submitting proceeds from the sale of State-owned property (including land use rights fees based on State-owned property) to the State budget, the payment receipt should record under the corresponding Chapter type 14, item 1, sub-item 9, Section 40 "Revenue from Sale of State-Owned Property."

4/ Section 28 "Land Use Rights Revenue" for accounting, bookkeeping, and settlement of revenue from land use rights granted to organizations and individuals according to current regulations. Specifically, revenue from land use rights of State-owned property from January 1, 1995, will not be accounted for under Section 28 "Land Use Rights Revenue" but will be accounted for under Section 40 "Revenue from Sale of State-Owned Property" as previously directed in Point 3, Part B. When submitting land use rights revenue to the State budget, the payment receipt should record under the corresponding Chapter, type, item, sub-item, and Section 28 "Land Use Rights Revenue."

5/ Section 29 "Land Transfer Tax" for accounting, bookkeeping, and settlement of land transfer tax paid by organizations and individuals according to the provisions of the Law on Land Transfer Tax. When submitting land transfer tax to the State budget, the payment receipt should record under the corresponding Chapter, type, item, sub-item, and Section 29 "Land Transfer Tax."