Circular No. 31/2003/TT-BTC guiding the financial mechanism for implementing the National Action Program on Tourism for the period 2002-2005

 

CIRCULAR

Guidelines for the financial mechanism to implement the National Action Program on Tourism for the period 2002-2005

旅游业阶段2002-2005

Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government on tasks, powers, and responsibilities for management by Ministries and ministerial-level agencies;
Pursuant to Decision No. 93/QĐ-TTg dated January 20, 2003 of the Prime Minister approving the budget for the National Action Program on Tourism for the period 2002-2005; Circular No. 289/CP-KTTH dated March 21, 2002 of the Government on the National Action Program on Tourism for the period 2002-2005.
The Ministry of Finance provides guidelines for the financial mechanism to implement the National Action Program on Tourism for the period 2002-2005 as follows:

Part 1:

GENERAL PROVISIONS

- The sources of funds for implementing the National Action Program on Tourism for the period 2002-2005 include: capital investment for construction and basic infrastructure projects and operational funds allocated from the state budget (central budget, local budget); contributions from tourism service enterprises; assistance from domestic and foreign tourism organizations; other lawful revenues (if any) as prescribed by law.

- The General Department of Tourism is the leading agency responsible for coordinating the implementation of the Program, and is responsible for compiling, reporting, and evaluating the overall situation and effectiveness of fund usage under the Program.

Part II:

SPECIFIC PROVISIONS

I/ ESTABLISHING BUDGET PROJECTIONS, ALLOCATING AND ISSUING FUNDS:

1/ Establishing Budget Projections:

- Annually, based on the content and objectives of the Program approved by the Prime Minister, the General Department of Tourism is responsible for assessing the implementation of the Program in the previous year, proposing the demand for resources for the Program's plan for the following year, including: state budget capital (domestic capital, loans and foreign aid, while dividing according to investment capital and operational funds); capital raised from tourism service enterprises; other capital (if any) to be submitted to the Ministry of Finance and the Ministry of Planning and Investment.

- The Ministry of Finance and the Ministry of Planning and Investment will consolidate these proposals to determine the level of funding allocation from the central budget to ensure the achievement of the Program's goals and tasks during the planning period, to be reported to the Government for submission to the National Assembly for decision.

2/ Allocating, Assigning Plans, and Issuing Funds for Implementing the Program:

2.1/ Allocating Program Capital:

a/ For funds guaranteed by the central government budget to implement the Program:

- For capital supporting the construction of tourism infrastructure in localities: Based on the total amount of funds assigned by the competent authority, the Ministry of Planning and Investment will lead in collaboration with the Ministry of Finance and the General Department of Tourism to propose a distribution plan for the localities.

- For operational funds: The General Department of Tourism will lead in collaboration with the Ministry of Finance and the Ministry of Planning and Investment to propose a distribution plan for the General Department of Tourism (including parts implemented by central ministries and agencies) and allocate funds for localities for tasks delegated by the General Department of Tourism, in accordance with the approved objectives and tasks.

On this basis, the Ministry of Finance and the Ministry of Planning and Investment have the responsibility to consolidate and submit to the competent authority for inclusion in the annual budget projection for the General Department of Tourism and localities.

b/ For funds guaranteed by the local government budget: Based on the Program's annual objectives, the General Department of Tourism will guide localities on the content of work to be carried out under the Program at the local level, so that localities can allocate it into their annual local government budget projections and mobilize other resources as prescribed by law for the implementation of the Program. Provincial People's Committees and municipal people's committees directly under the central government will allocate funds for each target and task to be implemented within their jurisdiction (including development capital and operational funds), to be submitted to the provincial People's Councils and municipal People's Councils directly under the central government for approval together with the approval of the annual local government budget allocation.

2.2/ Issuing Program Funds:

a/ For funds guaranteed by the central government budget to implement the Program:

- Program funds from the capital investment for construction and infrastructure support for local tourism areas will be issued in the form of "targeted supplementary" to localities according to the current procedures for issuing capital for construction and infrastructure investment.

- Program funds from operational capital:

+ For work volumes directly organized and implemented by the General Department of Tourism, the Ministry of Finance will issue funds to the General Department of Tourism according to current regulations.

+ For work volumes guaranteed by the central government budget and delegated by the General Department of Tourism to localities for implementation, the Ministry of Finance will issue delegated funds to the Department of Finance and Price Control for issuance to project owners based on the assigned budget and the project implementation approval decision of the provincial or municipal People's Committee directly under the central government.

- For Program funds from assistance (if any), they will be implemented according to Decree No. 17/2001/NĐ-CP dated May 4, 2001 of the Government on the management and use of official development assistance (ODA) and related documents.

- For funds raised from tourism service enterprises and other revenues (if any), the General Department of Tourism may use them for Program-related activities but must compile reports to submit to the Ministry of Finance.

b/ For funds guaranteed by the local government budget: Based on the assigned budget projection, detailed expenditure budget projections of units, the Department of Finance and Price Control will issue funds to the implementing units according to current regulations.

II/ CONTENT AND EXPENDITURE REGIME FOR IMPLEMENTING THE PROGRAM:

1/ Contents of expenditure:

a/ Expenditure from capital investment for construction and infrastructure:

Investment in upgrading and constructing infrastructure in tourist areas, regions, and sites.

b/ Expenditure from operational capital:

- Production and transportation costs for tourism promotion products in Vietnam domestically and internationally;

- Costs for promoting through domestic mass media; building a tourism information system.

- Promotion and publicity costs for Vietnamese tourism on foreign information systems and press about the country, people, potential, and policies for Vietnamese tourism; inviting foreign journalists and travel agencies to visit and survey to write promotional articles about Vietnamese tourism.

- Expenses for organizing domestic festivals and tourism events to develop festivals into tourism products;

- Expenses for surveying and developing new tourism programs, ecotourism programs, traditional craft village tourism programs, etc.;

- Expenses for organizing training courses to enhance labor capacity in the tourism industry; expenses for organizing competitions: tour guide skills, hotel operations, ethnic cuisine cooking, and other specialized competitions;

- Expenses for participating in international conferences, trade fairs, and organizing tourism events abroad;

- Management expenses for the Program: purchasing office supplies and assets, payment for fuel, travel expenses, communication costs, and other administrative expenses serving the Program;

- Expenses for interim, final reviews, inspections, and evaluations of the Program;

2/ Expense levels:

The above-listed expense items must be implemented in accordance with current standards and expenditure limits, specifically:

- For construction investment capital expenses, they shall be carried out according to the current basic construction cost norms and unit prices;

- For travel expenses paid to officials on domestic business trips, they shall be carried out in accordance with Circular No. 94/1998/TT-BTC dated June 30, 1998, issued by the Ministry of Finance, which stipulates travel expenses for state officials and civil servants on domestic business trips;

- For conference and seminar expenses, they shall be carried out in accordance with Circular No. 93/1998/TT-BTC dated June 30, 1998, issued by the Ministry of Finance, which stipulates conference expense regulations at all levels nationwide;

- For travel expenses paid to officials on overseas business trips, they shall be carried out in accordance with Circular No. 45/1999/TT-BTC dated May 4, 1999, issued by the Ministry of Finance, which stipulates travel expenses for state officials and civil servants on short-term overseas business trips, and Circular No. 108/1999/TT-BTC providing supplementary guidance to Circular No. 45/1999/TT-BTC dated May 4, 1999;

- For foreign guest reception expenses, they shall be carried out in accordance with Circular No. 100/2000/TT/BTC dated October 16, 2000, issued by the Ministry of Finance, which stipulates foreign guest reception expense regulations and expenses for organizing international conferences and seminars in Vietnam;

- For payment of remuneration to teachers participating in advanced skill training courses, they shall be carried out in accordance with Circular No. 105/2001/TT-BTC dated December 27, 2001, issued by the Ministry of Finance, which provides guidelines for managing and using training and retraining funds for state officials and civil servants;

- For special nature expenses such as printing publications, books, paintings, photographs; film production; advertising sign production; surveys; publicity activities through domestic and international mass media; organizing or supporting the organization of domestic and international tourism events...the basis for budget preparation and management is the state-prescribed systems, standards, and unit prices of similar industries. These expense items must be approved by the competent authority before implementation as the basis for fund disbursement and settlement;

- For tasks that require bidding, the Government Decree No. 88/1999/NĐ-CP dated September 1, 1999, on the issuance of the Tendering Regulation, Government Decree No. 14/2000/NĐ-CP dated May 5, 2000, amending and supplementing certain provisions of the Tendering Regulation issued together with Government Decree No. 88/1999/NĐ-CP dated September 1, 1999, and related implementing documents shall apply;

- For other expenses, they shall be based on valid and legitimate invoices and expense vouchers in accordance with current regulations;

III/ ADJUSTMENT OF CONTENT AND BUDGET ESTIMATES OF THE PROGRAM:

For centrally guaranteed program funding, during the implementation process, if it is deemed necessary to adjust the content and budget estimates of projects within the Program, the Tourism Administration shall implement adjustments after obtaining written agreement from the Ministry of Finance (for operating funds) and the Ministry of Planning and Investment (for construction funds);

IV/ REPORTING, INSPECTION, AND SETTLEMENT REGIME FOR EXPENSES:

1/ Quarterly and annual reporting regime: Units and localities implementing the Program are responsible for reporting to the Tourism Administration on the implementation status of the Program. The Tourism Administration reports on its own direct implementation work and compiles reports from localities on the implementation status of the Program to submit to the Ministry of Finance and the Ministry of Planning and Investment;

2/ Inspection regime: The Tourism Administration will cooperate with the Ministry of Finance and the Ministry of Planning and Investment to conduct regular or surprise inspections on the management and use of Program funds;

3/ Settlement of expenses: At the end of each quarter and year, units must report on the settlement of Program expenses along with the annual settlement of state budget expenditures. The settlement report should include detailed explanations about the implementation results of the Program, such as the volume of work completed, corresponding objectives achieved, and the level of expenses incurred;

- The Tourism Administration reports on the settlement of Program funds allocated to the Administration to the Ministry of Finance;

- For Program funds delegated to localities, units settle their use of funds with the Department of Finance and Price Control. The Department of Finance and Price Control is responsible for reviewing and approving the settlement reports of delegated funds in accordance with current regulations, and submitting them to the Ministry of Finance and the Tourism Administration;

The Ministry of Finance will coordinate with the Tourism Administration to review and examine the settlement of delegated funds from the Departments of Finance and Price Control, and compile the settlement report of the Program's implementation along with the annual state budget settlement for submission to the Government for approval by the National Assembly;

The Tourism Administration is responsible for compiling, reporting, and evaluating the use and settlement of Program funds approved by the Prime Minister at each stage;

Part 3:

IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette. During implementation, if there are any difficulties, units are advised to reflect them to the Ministry of Finance for consideration and appropriate amendments.