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

 CIRCULAR

DIRECTIVE NO. 16-TC/NSNN OF THE MINISTRY OF FINANCE ON MARCH 7, 1995 GUIDING, SUPPLEMENTING AND AMENDING THE STATE BUDGET CLASSIFICATION 

The Ministry of Finance issued Circular No. 68/TC-NSNN on August 15, 1994 regarding the systematization and supplementation and amendment of certain Chapters and Sections of the current State Budget Classification, which took effect from January 1, 1994. To date, due to many 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 Classification and guide the accounting and settlement of budget revenues and expenditures arising as follows:

A/ REGARDING CHAPTERS:

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

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 "Management Board of Export Processing Zones" for accounting and monitoring budget allocations to the Management Boards of Export Processing Zones: budget allocations arising from January 1, 1995 for the 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 Classification.

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 shall be established:

- Establish Section 06 "Customs Duties on Exports Through Land Borders"

- Establish Section 07 "Customs Duties on Imports Through Land Borders"

- Establish Section 32 "Other Revenues from Customs Duties on Exports and Imports Through Land Borders"

To avoid confusion in payment receipts, the receipt must clearly indicate the content: "Payment of customs duties on exports and imports through land borders or other revenues from customs duties on exports and imports through land borders." Goods permitted to be exported and imported via air and sea routes will still be accounted for under Section 33 "Other Revenues from Customs Duties" of the current State Budget Classification.

2/ Establish a new Section 15 "Social Insurance Revenue" for accounting, bookkeeping, and settlement of social insurance contributions deducted from administrative and public service units funded from local budgets submitted to the state budget by provincial finance departments and social insurance contributions 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 contributions 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 the quarterly budget plan of the accounting unit, it should be accounted for and settled under the corresponding type, item, sub-item, Section 68 "Social Insurance Expenditure."

- When transferring social insurance contributions 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, the accounting should be recorded under Chapter 99A, type 13, item 02, sub-item 03, Section 68 "Social Insurance Expenditure." At year-end when preparing the comprehensive 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 revenue and expenditure of the state budget does not overlap.

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

3/ Section 40 "Proceeds from the Sale of State-Owned Houses" for accounting, bookkeeping, and settlement of proceeds from the sale of state-owned houses to the specified objects 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, proceeds from land use rights fees based on the sale of state-owned houses arising from January 1, 1995 will be accounted for, booked, and settled under Section 40 "Proceeds from the Sale of State-Owned Houses."

When submitting proceeds from the sale of state-owned houses (including land use rights fees based on state-owned houses) to the state budget, the payment receipt should record under the corresponding Chapter type 14, item 1, sub-item 9, Section 28 "Land Use Rights Fees."

4/ Section 28 "Land Use Rights Fees" for accounting, bookkeeping, and settlement of land use rights fees collected from organizations and individuals according to the current regulations. Specifically, land use rights fees from state-owned houses arising from January 1, 1995 will not be accounted for under Section 28 "Land Use Rights Fees" but will be accounted for under Section 40 "Proceeds from the Sale of State-Owned Houses" as directed in Point 3, Part B. When submitting land use rights fees to the state budget, the payment receipt should record under the corresponding Chapter type 14, item 01, sub-item 9, Section 28 "Land Use Rights Fees."

In the course of implementation, if there are any issues requiring clarification or supplementation for amendment, it is requested that a written document be sent to the Ministry of Finance for the Ministry to study and resolve.