Circular No. 199/2009/TT-BTC on the financial mechanism for implementing the Program to rapidly and sustainably reduce poverty in poor districts

CIRCULAR

Regulations on Financial Mechanism for Implementing the Program to Rapidly and Sustainably Reduce Poverty in Poor Districts

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the Program to Rapidly and Sustainably Reduce Poverty in 61 Poor Districts;

The Ministry of Finance hereby stipulates the financial mechanism for implementing the Program to Rapidly and Sustainably Reduce Poverty in poor districts during the period from 2009 to 2020 in accordance with Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government (hereinafter referred to as Resolution No. 30a/2008/NQ-CP) as follows:

I. FINANCIAL MECHANISM FOR IMPLEMENTING THE PROGRAM

Article 1. General Provisions

1. The Program to Support Rapid and Sustainable Poverty Reduction in Poor Districts (hereinafter referred to as the Program) shall be funded from state budget sources, ODA funds, government bonds, credit capital, contributions from enterprises, residents, and other lawful financial sources as prescribed.

2. Provincial People's Committees having poor districts, and People's Committees of poor districts (provinces with poor districts and poor districts identified in Appendix I issued together with Circular No. 705/TTg-KGVX dated May 11, 2009 of the Prime Minister) shall be responsible for mobilizing local resources, units, organizations, and individuals according to regulations and implementing the integration of capital from programs, projects, and tasks within their jurisdiction in accordance with the joint Circular of the Ministry of Planning and Investment and the Ministry of Finance on guidelines for integrating capital from programs, projects, and tasks in poor districts.

3. Central ministries and agencies shall prioritize allocating capital under their direct management and allocation to programs, projects, and tasks in poor districts. Provincial People's Committee shall prioritize local budget capital to support poor districts (including poor districts decided to invest from local budgets by the locality).

4. Implementation of the Program must be transparent and democratic at the grassroots level, fully involving the participation of the people in the implementation process. Commune People's Committees shall publicly announce about beneficiaries, standards, funding for programs and projects, annual and overall objectives and tasks of the Program.

Article 2. Financial Mechanism for Implementing the Program

1. For areas and subjects in poor districts that are currently benefiting from other preferential policies not overlapping with those specified in Resolution No. 30a/2008/NQ-CP, they shall continue to enjoy such policies; if there is overlap with policies in Resolution No. 30a/2008/NQ-CP but with different levels of preference, they shall benefit from the highest level of preference.

2. All communes in poor districts (excluding communes in poor districts decided to invest from local budgets by the locality) shall enjoy policies prescribed by the State and implement financial management mechanisms similar to those for particularly difficult communes under Phase II of the Program 135 in poor districts.

3. Integration of capital to implement projects and tasks under the Program in the area must be based on general poverty reduction support systems, starting from the actual needs of people in each village, commune, and township, and ensuring synchronization and effectiveness of resources from programs, projects, and tasks in the area; reducing administrative layers, concentrating resources for the goal of rapid and sustainable poverty reduction; without changing the objectives, total investment funding, and total funding for public services allocated. For systems, standards, and norms related to individuals and households, sufficient funding must be ensured, implemented strictly according to the systems, standards, and norms, and this funding cannot be used for other goals and tasks.

4. Programs, projects, and tasks currently using state budget funds, if supported financially by sponsors to implement them, may use all or part of the state budget funds already allocated for these programs, projects, and tasks to implement other programs, projects, and tasks according to Resolution No. 30a/2008/NQ-CP (using all in cases where sponsors provide support equal to or higher than the state budget allocation; using a corresponding portion in cases where sponsors provide lower support than the state budget allocation), except in cases where there are commitments with sponsors, which shall be implemented according to those commitments.

5. Enterprises and cooperatives newly established from investment projects in areas with difficult economic and social conditions and extremely difficult conditions, economic zones, high-tech zones; from investment projects in high-tech fields, scientific research and technological development, investment in developing particularly important national infrastructure, software production; enterprises operating in education and training, vocational training, health care, culture, sports, and environment sectors shall enjoy tax incentives (preferential tax rates, periods of exemption and reduction) in accordance with the Law on Corporate Income Tax. In cases where enterprises and cooperatives sponsor education, healthcare, construction of houses of sympathy for the poor, and disaster relief, the sponsorship funds shall be included in deductible expenses when determining taxable income for corporate income tax; enterprises engaged in production, construction, transportation employing many female workers and ethnic minority workers, in addition to being included in deductible expenses when determining taxable income for expenses for female workers and ethnic minority workers, shall also have their corporate income tax reduced by the additional amount spent on female workers and ethnic minority workers.

In addition to the above provisions, enterprises and cooperatives shall be exempted from corporate income tax on income exempted from tax according to the Law on Corporate Income Tax. In cases where enterprises and cooperatives produce and trade goods and services subject to value-added tax and special consumption tax, and export/import goods for production and business purposes, they shall fulfill their tax obligations regarding value-added tax, special consumption tax, export tax, and import tax and enjoy preferential policies (if any) according to the laws on these taxes.

Enterprises and cooperatives that are allocated land or granted land leases by the State in accordance with laws on land for production and business purposes shall pay land use fees and land lease fees as prescribed by the Government's policies on collecting land use fees and land lease fees, and may enjoy preferential policies (if any) as provided by laws on such collection policies.

II. ESTABLISHING, IMPLEMENTING AND SETTLING THE BUDGET FOR THE PROGRAM

Article 3. Establishing and allocating the budget

1. The establishment, allocation, and assignment of the program budget shall be carried out in accordance with the Law on State Budgets, the Prime Minister's Directive, and guiding documents.

2. Each year, the People's Committee of the district shall establish the budget for implementing Resolution No. 30a/2008/NQ-CP according to each project, task, system, and policy, together with the district budget and send it to the Department of Finance, the Department of Planning and Investment, and relevant agencies for consolidation with the provincial budget; clearly identifying the sources of funds for implementation: state budget (distinguishing between central and local budgets), ODA funds, government bonds, credit, contributions from enterprises and residents, and other lawful financial sources as stipulated. Within each source of funds mentioned above, investment capital and public service capital must be separated.

The annual budget and financial resources for implementing projects, tasks, systems, and policies under Resolution No. 30a/2008/NQ-CP will be phased out according to the annual plan, ensuring feasibility; reported to the Provincial People's Committee for review and sent to the Ministry of Finance, the Ministry of Planning and Investment, and related ministries for consolidation and submission to the Government and the National Assembly for decision.

The annual budget is established based on the indicators and forms attached in this Circular and must provide detailed explanations of the basis for calculating the budget (Object; quantity; cost; source of funds) for each project, task, system, and policy.

3. For investment capital from government bonds for transportation, water conservancy, education, and health projects: Based on the total amount of capital assigned and the progress of project implementation, the Provincial People's Committee registers the annual demand for government bond capital for each project, sends it to the Ministry of Planning and Investment, the Ministry of Finance, and related ministries for consolidation as the basis for mobilizing and allocating government bond capital. The registration of the annual demand for government bond capital is carried out within the time limit specified for establishing the state budget.

4. For Ministries and central agencies: Establish the annual budget according to their assigned management fields, detailing the funding support for poor districts by locality, and send it to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and reporting to the Government for inclusion in the annual state budget proposal. Pay attention to the following contents:

a. The Ministry of Agriculture and Rural Development compiles the funding requirements for the New Forest Plantation Project of 5 million hectares (including funding for implementing support policies through forest care and protection contracts, forest transfer, and land transfer for productive forest planting as stipulated in Point 1, Clause A, Section II, Part II, Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government, excluding funding for poor households of 5 million dong per hectare per household to utilize and create agricultural production land in areas under forest care and protection contracts, and land transferred for productive forest planting, and supporting poor people with 50% interest subsidy on loans from state commercial banks for productive forest planting); the population resettlement program; government bond capital for water conservancy works; vaccine costs to control and eliminate dangerous animal and poultry diseases.

b. The Ethnic Minorities Commission compiles the funding requirements for the Program 135 Phase II (excluding funding for non-Program 135 communes that enjoy the same policies as Program 135 communes); the cluster commune center program; Decision No. 134/2004/QĐ-TTg dated July 20, 2004; Decision No. 32/2007/QĐ-TTg dated March 5, 2007; Decision No. 33/2007/QĐ-TTg dated March 5, 2007.

c. The Ministry of Labor, Invalids and Social Affairs compiles the funding requirements for the National Poverty Reduction Program; vocational training programs; the labor export program.

d. The Ministry of Health compiles the funding requirements for the Population and Family Planning Program; government bond capital for upgrading county hospitals, regional hospitals, multi-purpose clinics in regions, and other medical projects as decided by the Prime Minister. State budget capital invested in county health centers and preventive health centers.

e. The Ministry of Education and Training compiles the funding requirements for government bond capital to solidify school classrooms and housing for teachers.

g. The Ministry of Transport compiles the funding requirements for government bond capital for road construction projects.

h. The Ministry of Construction compiles the funding requirements for housing support for poor households.

i. The Ministry of Defense compiles the funding requirements for training and upgrading the professional skills of medical personnel, building combined military-civilian health stations, setting up vocational schools to train jobs for demobilized soldiers and local workers, organizing cultural and artistic activities, helping people build new lifestyles, ensuring social security and public safety in the area.

k. State Commercial Banks, Social Policy Bank, and Vietnam Development Bank compile the requirements for preferential credit, interest rate subsidies, and management fees and submit them to the Ministry of Finance and the Ministry of Planning and Investment for annual budget allocation as prescribed.

5. Based on the state budget assigned by the Prime Minister, local state budget sources, program, project, target, and task funds, and lawful fundraising to implement projects, tasks, systems, and policies stipulated in Resolution No. 30a/2008/NQ-CP, the Department of Finance shall take the lead in coordinating with relevant agencies to report to the Provincial People's Committee for approval by the Provincial People's Council in the local budget, including the budget for poor districts.

6. On the basis of the Resolution of the Provincial People's Council, the Provincial People's Committee allocates the state budget to the districts. Based on resources from programs and projects within the assigned area, and the actual needs of people in each village, hamlet, commune, the District People's Committee submits to the District People's Council for decision on the district state budget estimate and the allocation plan for the district state budget to each agency, unit, and allocates the state budget estimate to communes (In cases where the pilot program does not organize the District People's Council, the process of establishing and deciding on the budget estimate shall be carried out in accordance with Circular No. 63/2009/TT-BTC dated March 27, 2009 of the Ministry of Finance). The Commune People's Committee submits to the Commune People's Council for decision on the commune state budget revenue and expenditure estimate.

7. On the basis of the competent authority's decision, the Commune People's Committee publicly announces the investment level for each project, task, and the support level for each household according to each policy and benefit system regulated in Circular No. 10/2005/TT-BTC dated February 2, 2005 of the Ministry of Finance guiding the implementation of the financial transparency regulation regarding the allocation, management, and use of construction investment capital from the state budget, and Circular No. 54/2006/TT-BTC dated June 19, 2006 of the Ministry of Finance guiding the implementation of the financial transparency regulation for direct support from the state budget to individuals and residents.

Article 4. Management, distribution, payment, settlement of funds

1. The management and use of funds under the Program shall be carried out in accordance with the State Budget Law and related guiding documents.

The management, distribution, payment, and settlement of funds for implementing projects, tasks, systems, and policies stipulated in Resolution No. 30a/2008/NQ-CP for agencies, units, and individual households must be strict, ensuring the correct objectives and target groups, in accordance with prescribed regulations. For direct cash payments (or in-kind) to households, the Commune People's Committee must prepare a list for each household to sign and acknowledge, with confirmation from the village head, and implement all required procedures and documents as prescribed.

2. For construction works and projects implemented from development investment capital.

The management, distribution, and payment for construction works and projects funded from the state budget shall be carried out in accordance with the Circular of the Ministry of Finance guiding the management, payment, and settlement of investment capital for poor districts. Additionally, note the following points:

a. For land reclamation, restoration, and terraced field creation support: Based on specific conditions in the locality, areas with concentrated land reclamation, the District People's Committee shall establish a land reclamation project, create terraced fields using machinery, then allocate them to households for production, managing, distributing, paying, and settling according to the aforementioned document. For areas with small, scattered agricultural land that are difficult to reclaim using machinery, direct support shall be provided to households to organize and reclaim, restore, and create terraced fields: The Commune People's Committee shall prepare a list of households (detailing the number of households, area, location of reclamation, restoration, and terraced field creation), submit it to the District People's Committee for approval. Based on the list of households approved by the District People's Committee, the Commune People's Committee shall compile the funding requirements and send them to the finance department as the basis for inspection and control, issuing payment orders through the State Treasury (transferred into the commune's budget account or supplementary for the commune's budget based on the management hierarchy) for the Commune People's Committee to pay households based on the acceptance certificate signed by each household and confirmed by the village head.

b. For the 5 million hectare forest planting project, it shall be implemented in accordance with Circular No. 89/2008/TT-BTC dated October 15, 2008 of the Ministry of Finance on guiding the management, distribution, and payment of state budget funds for the 5 million hectare forest planting project and related documents.

c. For investment capital from government bonds: It shall be implemented in accordance with Circular No. 28/2007/TT-BTC dated April 3, 2007, Circular No. 133/2007/TT-BTC dated November 14, 2007, and Circular No. 89/2009/TT-BTC dated April 29, 2009 of the Ministry of Finance guiding the management, distribution, payment, and settlement of investment capital from government bonds; Circular No. 46/2008/TT-BTC dated June 6, 2008, and Circular No. 114/2009/TT-BTC dated June 3, 2009 of the Ministry of Finance guiding the management mechanism and use of funds to implement the Project to Strengthen School Buildings and Teacher Housing for the period 2008-2012; Circular No. 119/2008/TT-BTC dated December 8, 2008; and Circular No. 115/2009/TT-BTC dated June 3, 2009 of the Ministry of Finance guiding the management, payment, and settlement of investment capital for health projects managed by localities pursuant to Resolution No. 18/2008/NQ-QH12 dated June 3, 2008 of the National Assembly, Session XII.

d. For sources of capital from programs, projects, ODA, credit, and contributions from enterprises and residents: Management, distribution, payment, and settlement shall be carried out in accordance with current regulations corresponding to each source of capital.

3. For tasks, systems, and policies implemented from public service fund.

The management and distribution of funds shall be carried out in accordance with Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law and current guiding documents. Among which, note the following points:

a. Regarding food support for poor households in border villages: Based on the list of poor households in border villages that have not been self-sufficient in food (excluding those who have already received benefits from other programs such as the Four Mountainous Rock-Highland Counties Project in Ha Giang Province; poor households receiving contracts to care for and protect forests and land for forest production as stipulated in point c, clause 1, section A, part II of Resolution No. 30a/2008/NQ-CP,...) approved by the People's Committee of the district, the supply contract between the entity authorized to assign tasks and the supplier; the actual quantity of rice supplied to households recorded in the handover protocol between the supplier and each household (signed by the head of the household and confirmed by the village chief), and the proposal of the People's Committee of the commune, the financial department will inspect and issue an Order to transfer funds to the State Treasury for payment to the entities assigned the task.

b. For one-time support of planting materials and livestock, and fertilizers: Based on the quota of planting materials and fertilizers, the price of planting materials and fertilizers decided by the Chairman of the Provincial People's Committee, the People's Committee of the commune will publicly announce the types of crops and livestock allowed to be converted, for which households can register area and quantity, type of planting materials and fertilizers, and submit to the People's Committee of the district for approval. Based on the supply contract between the entity authorized to assign tasks and the supplier; the actual quantity and type of planting materials and fertilizers supplied to households recorded in the handover protocol between the supplier and each household (signed by the head of the household and confirmed by the village chief), and the proposal of the People's Committee of the commune, the financial department will inspect and issue an Order to transfer funds to the State Treasury for payment to the entities assigned the task.

For planting materials, livestock, and other goods purchased from the people for use in projects under the Program, prices must be consistent with the general market level at the same time period (the Department of Finance and Planning of the district has the responsibility to review and ensure consistency with the general market level at the same time period); the payment vouchers are purchase receipts with confirmation from the village chief where the sale took place, and confirmed by the People's Committee of the commune.

c. Support for agricultural extension, fishery extension, and industrial extension activities shall be implemented according to the provisions of Circular Joint No. 30/2006/TTLT-BTC-BNN&PTNT-BTS dated April 6, 2006 issued by the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the Ministry of Fisheries on the management and use of economic public expenditure for agricultural extension and fishery extension activities; Circular Joint No. 50/2007/TTLT-BTC-BNN&PTNT-BTS dated May 21, 2007 issued by the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the Ministry of Fisheries amending and supplementing Circular Joint No. 30/2006/TTLT-BTC-BNN&PTNT-BTS dated April 6, 2006; Circular Joint No. 36/2005/TTLT-BTC-BCN dated May 16, 2005 issued by the Ministry of Finance and the Ministry of Industry on guiding the use of economic public expenditure for industrial extension activities. For poor households, it shall be implemented according to the provisions of Circular Joint No. 102/2007/TTLT/BTC-LĐTBXH dated August 20, 2007 issued by the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs guiding the financial management mechanism for some projects under the National Target Program on Poverty Reduction.

d. For vocational training for rural laborers, it shall be implemented according to the provisions of Circular Joint No. 06/2006/TTLT-BTC-BLĐTBXH dated January 19, 2006 issued by the Ministry of Finance and the Ministry of Labor, War Invalids and Social Affairs guiding the implementation of policies to support short-term vocational training for rural laborers; for poor households, it shall be implemented according to the provisions of Circular Joint No. 102/2007/TTLT/BTC-LĐTBXH dated August 20, 2007 issued by the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs guiding the financial management mechanism for some projects under the National Target Program on Poverty Reduction. Support for workers to study culture, learn trades, foreign languages, and necessary knowledge for labor export shall be implemented according to the provisions of the joint circular of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance guiding the implementation of certain contents of Decision No. 71/2009/QĐ-TTg dated April 29, 2009 of the Prime Minister.

e. Training and capacity building for communal cadres, village cadres, and community members shall be implemented according to the provisions of Circular Joint No. 01/2008/TTLT-UBDT-KHĐT-TC-XD-NNPTNT dated September 15, 2008 issued by the Committee for Ethnic Minorities, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development guiding the implementation of the Socio-Economic Development Program for Communes in Particularly Difficult Areas of Ethnic Minorities and Mountainous Regions for the 2006-2010 period.

4. The funds for directing, inspecting, supervising, organizing meetings to implement, mid-term reviews, final summaries, travel expenses for officials attending provincial, district, and central conferences and training sessions, office equipment, etc., at all levels shall be guaranteed from local budgets and the management funds of the Program 135 Phase II, and shall be managed, allocated, and settled according to current regulations for each source of funding.

5. All funds from the state budget for implementing the Program must be centrally and uniformly managed and paid through the State Treasury. For contributions in cash, materials, and donations in kind and labor, based on the unit price of materials and the value of workdays, the finance agency will convert them into Vietnamese dong to issue an Order to collect revenue, and simultaneously issue an Order to pay from the budget sent to the State Treasury branch for accounting into the value of construction projects and recording income and expenditure in the state budget according to regulations.

6. The amount of central government budget supplementary funds for local budgets to implement the Program as stipulated in Resolution No. 30a/2008/NQ-CP shall be accounted for and settled according to current regulations for local budget revenue and expenditure.

III. INSPECTION, SUPERVISION AND REPORTING REGIME

Article 5. Inspection, supervision, and evaluation

1. The Provincial People's Committee shall be directly and fully responsible for the quality, progress, and effectiveness of the Program within its jurisdiction. Based on the objectives of the Program and the actual conditions of the locality, the Provincial People's Committee shall direct the districts to establish specific targets to be achieved according to the annual and phased progress, and at the end of the Program, serving as a basis for monitoring and evaluating the implementation results of the Program at each district, commune, and throughout the province.

2. The Provincial People's Committee shall direct relevant agencies, units, and districts to regularly organize inspections of the Program's implementation. The provincial Program's permanent office shall take the lead in proposing inspection plans and contents, assisting the Provincial People's Committee in compiling and reporting the results of the Program's implementation assessment.

3. The Provincial People's Committee shall direct departments, branches, the People's Committees of the districts, and related units to create favorable conditions for the People's Councils, the Vietnam Fatherland Front, social organizations at all levels in the locality, and the community to participate in and coordinate with the supervision of the Program's implementation.

Article 6. Reporting System

1. The District People's Committee shall direct relevant agencies and the Commune People's Committees to cooperate with the State Treasury to monitor the situation of funding allocation and payment for the implementation of projects, tasks, systems, and policies stipulated in Resolution No. 30a/2008/NQ-CP; monthly, the Commune People's Committee shall report to the District People's Committee to report to relevant departments and ministries about the Program's implementation results, which will be compiled and reported to the Provincial People's Committee.

2. Regularly every month, quarter, and year, the Provincial People's Committee shall be responsible for reporting the results of the implementation to the central Program's permanent office (Ministry of Labor, Invalids and Social Affairs), Ministry of Finance, and Ministry of Planning and Investment in accordance with the regulations of the Ministry of Labor, Invalids and Social Affairs.

Article 7. Implementation Provisions

1\. This Circular takes effect forty-five days from the date of issuance.

2. During the implementation process, if there are difficulties, they should be reflected to the Ministry of Finance for consideration and appropriate amendments and supplements./.