Circular No. 29/2013/TT-BTC on the management and use of funds collected from loan fee and guarantee fee deductions at the Ministry of Finance during the period 2012-2015

CIRCULAR

Regulations on managing and using the funds collected from the loan repayment fee and guarantee fee allocated to the Ministry of Finance during the period of 2012-2015

Regarding the management and use of the loan repayment fee and the portion of the guarantee fee allocated to the Ministry of Finance during the period of 2012-2015

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

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 Decision No. 46/2012/QĐ-TTg dated October 29, 2012 of the Government on the management and use of the loan repayment fee and the portion of the guarantee fee allocated to the Ministry of Finance during the period of 2012-2015.

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular to regulate the management and use of the funds collected from the loan repayment fee and guarantee fee allocated to the Ministry of Finance during the period of 2012-2015 as follows:

Article 1. Scope of Regulation

Article 1. This Circular regulates the management and use of the funds collected from the loan repayment fee and guarantee fee allocated to the Ministry of Finance during the period of 2012-2015.

2. The loan rescheduling fee is the amount that the borrower must pay according to Clause 1, Article 10 of Decree No. 78/2010/NĐ-CP dated July 14, 2010 of the Government on loan rescheduling from foreign government loans.

3. The guarantee fee is the portion that the Ministry of Finance extracts according to Clause 3, Article 12 of Decree No. 15/2011/NĐ-CP dated February 16, 2011 of the Government on the issuance and management of government guarantees.

Article 2. Applicability

1. The Ministry of Finance.

Article 2. The unit directly responsible for public debt management at the Ministry of Finance is the Department of Debt Management and External Financial Affairs.

Article 3. Units that coordinate directly in implementing public debt management at the Ministry of Finance.

Article 4. Organizations and individuals related to the management and use of the loan repayment fee, the portion of the guarantee fee, and those involved in public debt management activities.

Article 3. Allocation and use of budget funds

Clause 1. The funds collected from the loan repayment fee and guarantee fee allocated, shall be allocated and managed and used as follows:

Point a) Forty percent of the funds collected from the loan repayment fee and guarantee fee as stipulated in Clause 1, Clause 2 of Article 1 of this Circular shall be retained in the Accumulation Fund for Debt Repayment.

Point b) The remaining sixty percent shall be used according to the provisions of Clause 2 of Article 2 of Decision No. 46/2012/QĐ-TTg dated October 29, 2012 of the Prime Minister and the guidance provided in this Circular.

Clause 2. The source of budget funds specified in Point b, Clause 1 of Article 3 of this Circular shall be allocated and assigned a budget ensuring: Investment in physical infrastructure and equipment, enhancing the effectiveness of public debt management according to specific projects, programs, and plans approved by the Minister of Finance at least forty percent; Training, upgrading, seminars, and training sessions to improve professional skills, foreign languages, and other relevant knowledge (including domestic training and sending staff to overseas training courses) for the team of officials and civil servants directly engaged in public debt management; officials and civil servants related to public debt management at the Ministry of Finance and other organizations and individuals related to it, up to a maximum of sixty percent.

Clause 3. Contents of fund usage:

Point a) Investment in physical infrastructure and equipment, enhancing the effectiveness of public debt management according to specific projects, programs, and plans approved by the Minister of Finance, including:

- Investment in physical infrastructure and purchase of equipment to serve public debt management work.

- Expenditure on information technology application in public debt management work, including: hardware equipment provision; software development and implementation; establishment of a database on public debt and other IT projects serving public debt management work.

- Expenditure on training, upgrading, seminars, and training sessions to enhance professional skills, foreign languages, and other relevant knowledge (including domestic training and sending staff to overseas training courses) for the team of officials and civil servants directly engaged in public debt management; officials and civil servants related to public debt management at the Ministry of Finance and other organizations and individuals related to it.

Point b) Expenditure on rewarding groups and individuals outside the unit directly responsible for public debt management at the Ministry of Finance who have made direct contributions to public debt management activities (excluding annual rewards under the Law on Commendation and Reward): up to one month's salary, wages, and actual income earned in the year of the Department of Debt Management and External Financial Affairs.

Clause 4. Any budget funds allocated to implement the tasks specified in Clause 3 of this Article that remain unused at the end of the year may be carried over to the next year to continue implementing the tasks.

Article 4. Standards, norms, and expenditure regulations

The expenditure system for implementing investment and enhancing the effectiveness of public debt management from the fees collected for loan repayment and guarantee fees is implemented according to the current state financial expenditure regulations. This Circular provides additional guidance on the following matters:

Clause 1. Expenditure on investment in physical infrastructure and equipment: carried out according to the current standards and norms set by the state and the Ministry of Finance; the organization of investment and procurement must comply with the laws on bidding and the regulations of the Ministry of Finance.

Clause 2. Expenditure on information technology application: carried out according to the provisions of Decree No. 102/2009/NĐ-CP dated November 6, 2009 of the Government on the management of investment in information technology application using state budget funds; Joint Circular No. 19/2012/TTLT-BTC-BKH&ĐT-BTTTT dated February 15, 2012 of the Ministry of Finance, the Ministry of Information and Communications, and the Ministry of Planning and Investment guiding the management and use of funds for information technology application in the operations of state agencies.

Clause 3. Expenditure on training and upgrading officials and civil servants: carried out according to the provisions of Circular No. 139/2010/TT-BTC dated September 21, 2010 of the Ministry of Finance on the preparation of budgets, management, and use of state budget funds for training and upgrading officials and civil servants.

In addition, the following guidance is provided: For cases where foreign lecturers are invited: depending on the necessity, the Director of the Department of Debt Management and External Financial Affairs decides on inviting foreign lecturers, determines the remuneration for foreign lecturers based on agreements with them, ensuring it is appropriate to the available budget, and is responsible for their decisions.

Clause 5. Expenditure on studying and surveying abroad is carried out according to the provisions of Circular No. 102/2012/TT-BTC dated June 21, 2012 of the Ministry of Finance on the travel expenses system for state officials and civil servants going on short-term missions abroad funded by the state budget.

Clause 6. For special expenditures in public debt management not regulated in the expenditure systems of competent authorities: Based on the available budget funds and applying the current standards and expenditure levels, the Ministry of Finance will establish and issue special standards and expenditure levels suitable for implementation.

Article 5. Utilization of saved funds

At the end of the fiscal year, the amount of difference between the source of funds specified in point b, Clause 1, Article 3 of this Circular and the actual expenditure for the contents stipulated in Clause 3, Article 3 of this Circular, the Department of Debt Management and External Finance shall use such funds for the following purposes:

1. To supplement income for officials and civil servants up to a maximum of 1.0 times the state-prescribed salary level (including: grade, rank, position salaries and various allowances; excluding night shift and overtime allowances). The distribution of income for officials and civil servants shall be based on the principle of linking with work performance and quality, ensuring fairness and reasonableness, and must be specified in the Internal Expenditure Regulation.

The total amount of supplementary income for officials and civil servants from the aforementioned sources and from the saved funds of the unit when implementing the financial autonomy regime as prescribed in Decree No. 130/2005/NĐ-CP dated October 17, 2005, shall not exceed a maximum of 1.0 times the state-prescribed salary level.

2. To spend on rewards and welfare for officials and civil servants (up to a maximum of three months' salary, wages, and actual income earned during the year, excluding annual reward expenditures as prescribed by the Law on Encouragement and Reward), including: periodic or extraordinary rewards for groups and individuals based on work results and achievements; spending on collective welfare activities for officials and civil servants; emergency hardship assistance for officials and civil servants, including those who have retired or been disabled; additional spending for employees within the establishment when implementing staff reduction.

The total amount of spending on rewards and welfare for officials and civil servants from the aforementioned sources and from the saved funds of the unit when implementing the financial autonomy regime as prescribed in Decree No. 130/2005/NĐ-CP dated October 17, 2005 shall not exceed three months' salary, wages, and actual income earned during the year. The specific levels and recipients of spending must be clearly defined in the Internal Expenditure Regulation of the unit.

3. To establish a Reserve Fund for Income Stability: The contribution level must ensure that the fund balance does not exceed three months' salary. The Reserve Fund for Income Stability shall be used in cases where the saved funds are insufficient to ensure income stability for officials and civil servants of the Department of Debt Management and External Finance. The total amount of supplementary income for officials and civil servants of the Department of Debt Management and External Finance annually from this fund and from the saved funds of the unit when implementing the financial autonomy regime as prescribed in Decree No. 130/2005/NĐ-CP dated October 17, 2005, shall not exceed 1.0 times the state-prescribed salary level.

4. Any remaining saved funds (if any) after being used for the purposes specified in this Article shall be transferred to the next year for continued use.

Article 6. Preparation, Implementation, and Settlement of Budgets

The preparation, implementation, accounting, and settlement of fees for loan relending and guarantee fees retained for expenditure shall be carried out according to current regulations. This Circular provides guidance on certain specific points as follows:

1. On Budget Preparation:

Annually, at the time of preparing the budget, the Department of Debt Management and External Finance bases on its revenue capacity and expenditure needs for the planned year, prepares the budget for revenue and expenditure from relending fees and guarantee fees, which are included in the annual revenue and expenditure budget of the Department, and submits it to the Ministry of Finance (primary budget unit) for review, balancing, and inclusion in the annual state budget according to the State Budget Law.

2. On Allocation and Assignment of Budget Estimates:

Based on the annual state budget revenue-expenditure plan assigned by the Prime Minister, the Ministry of Finance (primary budget unit) implements the assignment of revenue-expenditure budgets for the Department of Debt Management and External Finance (including the budget for revenue and expenditure from relending fees and guarantee fees).

3. Revenue budget execution management:

a) The Department of Debt Management and External Finance organizes the collection of relending fees and guarantee fees according to the provisions of the relending contracts and guarantee commitments, and deposits them into the Loan Repayment Accumulation Fund.

b) On a monthly basis, based on the actual collected relending fees and guarantee fees, the Department of Debt Management and External Finance determines the amount that the Ministry of Finance can retain according to the provisions of Article 2 of this Circular, including determining the amount of 40% to be left in the Loan Repayment Accumulation Fund and the amount of 60% to be used according to the provisions of Article 2 of Decision No. 46/2012/QĐ-TTg dated October 29, 2012 of the Prime Minister and the guidance provided in this Circular.

The Department of Debt Management and External Finance is allowed to open a deposit account at the State Treasury to receive and use the 60% of relending fees and guarantee fees retained by the Ministry of Finance mentioned above. The State Treasury will monitor and control the expenditures for the Department's activities from this account according to current regulations.

4. Regarding settlement:

a) After the end of the fiscal year, the Department of Debt Management and External Finance has the responsibility to reconcile the data on relending fees and guarantee fees with the relending institutions and project owners to determine the amount that the Ministry of Finance can retain and the amount that can be used according to the regulations.

b) The settlement of relending fees and guarantee fees retained by the Ministry of Finance shall be carried out according to current regulations and included in the annual settlement of the Department of Debt Management and External Finance.

Article 7. Implementation Organization

1. This Circular takes effect from May 1, 2013.

2. For the distribution of additional income for officials and civil servants of the Department of Debt Management and External Finance in 2012:

The Director of the Department of Debt Management and External Finance shall implement the supplementation of income for officials and civil servants beyond the additional income temporarily allocated according to the general system for units under the Ministry of Finance, ensuring that the total additional income in 2012 does not exceed 1.0 times the state-prescribed salary level; while also ensuring the principle of linking with work performance and quality, ensuring fairness and reasonableness, and must be specified in the Internal Expenditure Regulation.

3. The amount retained for expenditure from the 2012 relending fee and guarantee fee revenue after spending on additional income in 2012 as stipulated in Clause 2 of this Article shall be transferred to 2013 for use and implemented according to the provisions of this Circular.

4. Annually, the Director of the Department of Debt Management and External Finance shall organize an evaluation to draw lessons from the implementation of management and utilization of fees for refinancing and the portion of guarantee fees at the Ministry of Finance, and report to the Minister of Finance; in the third quarter of 2015, the Ministry of Finance shall take the lead in evaluating the results of implementation during the period of 2012-2015, and submit to the Prime Minister the mechanism for implementation of the subsequent phase.

During the implementation process, if there are difficulties or obstacles, they are requested to reflect these issues to the Ministry of Finance for study and resolution./.