Circular No. 212-TC/NSNN regarding guidance on implementing Circular No. 337-TC/VP

LETTER

OF THE MINISTRY OF FINANCE NO. 212/TC-NSNN OF OCTOBER 1997 ON GUIDING THE COMPLETION AND IMPLEMENTATION OF CIRCULAR 337-TC/VP

Respectfully submitted to:

- Departments of Finance and Prices, State Treasury of provinces and centrally-administered cities,

- Financial Accounting Departments of Ministries, agencies at ministerial level, government agencies, and central organizations,

Point 4 of Circular No. 337-TC/VP dated September 16, 1997 of the Ministry of Finance stipulates that "The Ministry of Finance requests higher-level management agencies to complete the detailed budget allocation and assignment for the 1997 state budget for subordinate units according to the state budget classification. By October 31, 1997, if detailed budgets cannot be allocated and assigned to budget-using units, the State Treasury shall temporarily suspend funding for those units and simultaneously notify the higher-level management agencies."

To ensure compliance with the above regulations, the Ministry of Finance provides further clarification on some points as follows:

1. The allocation and assignment of budgets to budget-using units as prescribed by the Budget Law and Decree No. 87/CP fall within the jurisdiction of higher-level management agencies, specifically:

- The Government and People's Committees of provinces and centrally-administered cities allocate and assign state budgets to first-level units (Ministries, Departments, and equivalent levels).

- First-level budgetary units allocate and assign state budgets to second-level budgetary units.

- Second-level budgetary units allocate and assign state budgets to third-level budgetary units (budget-using units).

In cases where there are no second-level budgetary units, first-level budgetary units shall allocate and assign state budgets directly to third-level budgetary units.

2. The allocation of state budget estimates to budget-using units must match the total amount and details of the assigned state budget, specifically:

- The total state budget estimate allocated to second-level budgetary units (or third-level units in the absence of second-level units) must equal the state budget estimate assigned by the Government and People's Committees to first-level budgetary units.

- The total state budget estimate allocated to third-level budgetary units must equal the state budget estimate assigned by first-level budgetary units to second-level budgetary units.

The results of the state budget allocation to budget-using units must be sent to the financial authorities at the same level and the State Treasury where transactions take place as a basis for disbursement. Financial authorities have the responsibility to review, and if there are inconsistencies, they must request adjustments. Within 15 days from the date of submission, if the financial authority does not provide comments, it will be considered as acceptance.

By October 31, if budget-using units have not received detailed state budget estimates from higher-level management agencies, the State Treasury may temporarily suspend funding. In special cases where difficulties prevent the allocation of budgets to budget-using units due to objective reasons, higher-level management agencies must report to the financial authorities at the same level for consideration to extend the temporary suspension period of funding but must submit detailed state budget estimates according to the state budget classification prepared by budget-using units to the State Treasury where transactions take place.

The above are some important points to note during the implementation of Circular No. 337/TC-VP of the Ministry of Finance. It is requested that financial authorities, State Treasuries, and budgetary units strictly comply to ensure smooth budget disbursements and the fulfillment of specialized tasks recorded in approved budgets.