JOINT CIRCULAR No. 35/2009/TTLT-BNNPTNT-BKHĐT-BTC GUIDING THE MANAGEMENT, USE AND SETTLEMENT OF STATE BUDGET FUNDS FOR IMPLEMENTING THE NATIONAL ACTION PROGRAM TO COMBAT DESERTIFICATION FROM 2006 TO 2010 AND OUTLOOK UNTIL 2020

JOINT CIRCULAR

Guidelines on the management, use, and settlement of state budget funds for implementing the National Program to Combat Desertification

during the period from 2006 to 2010 and towards 2020

for the period from 2006 to 2010 and the orientation towards 2020

 ____________________________

Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 26/2008/NĐ-CP dated March 5, 2008 of the Government stipulating the management and use of state budget funds to ensure international treaties and international agreements;

Pursuant to Decision No. 204/2006/QĐ-TTg dated September 2, 2006 of the Prime Minister approving the "National Program to Combat Desertification for the period 2006-2010 and towards 2020".

The Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, and the Ministry of Finance hereby issue guidelines on the management, use, and settlement of state budget funds for implementing the National Program to Combat Desertification for the period 2006-2010 and towards 2020 as follows:

Article 1. Scope of Application

These guidelines provide guidance on the management, use, and settlement of state budget funds for implementing the National Program to Combat Desertification for the period 2006-2010 and towards 2020, issued pursuant to Decision No. 204/2006/QĐ-TTg dated September 2, 2006 of the Prime Minister (hereinafter referred to as the Program).

Article 2. Sources of Funding to Implement the Program

1. State budget funds; ODA funds; funds from international cooperation programs; donations from organizations and individuals both within and outside the country; contributions from people in areas benefiting from the Program.

2. Funds for implementing tasks and projects led by central ministries and agencies shall be guaranteed by the central budget. Funds for implementing tasks and projects led by provincial-level authorities shall be guaranteed by local budgets according to current budget decentralization regulations.

Article 3. Principles for Using Funds

Units using Program funds must ensure they are used for their intended purposes, in accordance with established regulations, efficiently and economically; they must comply with inspections and controls by competent authorities; and they must settle accounts annually and at the end of each project in accordance with current national regulations.

Article 4. Regulations on Management, Use, and Settlement of State Budget Funds for Implementing the Program

1. Sources of funds for implementing the Program according to prioritized projects (assigned responsibilities by the Prime Minister to relevant ministries, sectors at the central level, and provincial People's Committees under Decision No. 204/2006/QĐ-TTg) are as follows: The Prime Minister assigns responsibilities for main conduct and coordination to central ministries, agencies, and provincial People's Committees pursuant to Decision No. 204/2006/QĐ-TTg as follows:

a) Expenditure from development investment funds:

- Construction and improvement of integrated monitoring stations related to desertification prevention and control.

- Planting sand-fixing forests, improving inland dune areas, and limiting drought and soil degradation in Central Coastal provinces.

- Planting semi-aquatic protective forests around major hydropower reservoirs (Hoà Bình, Trị An, Sơn La...).

- Utilizing and restoring degraded lateritic soils in the Central Highlands (This project may mobilize additional resources from other sources).

- Implementing successful pilot models for desertification and land degradation prevention and control, focusing on four priority regions: Northwest, Central Coast, Central Highlands, and Mekong Delta.

- Establishing a center for data storage and a complete database system to support desertification prevention and control efforts, based on upgrading and supplementing existing systems.

b) Recurrent expenditure

- Expenditure from training service funds:

Enhancing community awareness about desertification prevention and control tasks. Developing training materials for farmers to sustainably manage livelihoods in desertified areas.

Developing and implementing policies, planning, and training programs for cadres (especially those at the grassroots level) to serve desertification prevention and control efforts.

Training specialized staff with sufficient expertise and capacity in risk assessment, risk management, analysis, and identification of causes of desertification and land degradation.

- Expenditure from scientific research service funds:

Applying modern and traditional technologies in the sustainable protection and development of forest and land resources, water resources, to address desertification prevention and control tasks.

Identifying natural and social factors causing desertification and land degradation in Vietnam, particularly in four priority regions; proposing specific solutions for desertification prevention and control.

Building pilot models using technologies to restore and increase fertility of degraded lands due to pollution, lack of water, etc., linking agricultural and forestry production to markets for effective and sustainable cultivation in desertified areas, focusing on four priority regions (Northwest, Central Coast, Central Highlands, and Mekong Delta).

Studying and evaluating the hydrological status of forests in Vietnam for each region and river system affected by drought.

Studying strategies for economic growth and poverty reduction, investment in socio-economic development in desertified areas, harmonizing with other regions nationwide.

Studying the rehabilitation of degraded agricultural land, barren hills, and areas heavily affected by drought and desertification in four priority regions.

- Expenditure from economic service funds:

Maintaining the operation of the center for data storage and a complete database system to support desertification prevention and control efforts.

Conduct basic investigations and assess the current status of desertification in Vietnam and its impact on economic and social development, with a focus on four priority regions: Northwest, Central Coast, Central Highlands, and Mekong Delta.

Plan for agricultural land that has degraded, barren mountainous areas, and regions heavily affected by drought and desertification in the four priority regions.

Plan for three types of forests, delineate boundaries on-site, and allocate forestry land to serve the mission of preventing desertification.

Develop comprehensive management plans for special ecosystems in the four priority regions for combating desertification.

Plan and implement surface water and groundwater resource utilization strategies in desertified and semi-desertified regions.

Allocate funds for promoting trade and market consumption of agricultural and forestry products in desertified and semi-desertified regions.

Apply information technology in collecting, storing, and processing national information to support efforts in preventing and combating desertification.

Enhance information exchange, establish bilateral and multilateral partnerships, and develop sub-projects to strengthen cooperation with specialized networks at the national level during the implementation of the Convention to Combat Desertification.

- Allocate from environmental public expenditure funds:

Assess erosion, runoff, salinization, and acidification processes in Central Vietnam, Central Highlands, and Mekong Delta.

Establish experimental models, risk assessment, management, and monitoring systems for the use of land, water, and forest resources.

Classify drought levels for each region and river system within areas severely impacted by drought.

c) Allocate from administrative management funds and other investment sources through bilateral and multilateral international cooperation programs; domestic and foreign business, organization, and individual capital for desertification prevention and control according to legal regulations:

 - Develop, supplement, and amend policies, regulatory legal documents, and organizational management structures under the Law on Forest Protection and Development, Water Resources Law, Land Law, Environmental Protection Law, etc., related to the mission of preventing and combating desertification.

- Develop socialized policies, particularly rural credit policies, and benefit policies for people and organizations serving the work of preventing and combating desertification as a basis for localities to proactively guide implementation in each area.

- Develop mechanisms for collaboration between ministries and sectors, between central and local authorities, and for managing programs and projects under the Convention to Combat Desertification towards enhancing decentralized management for sectors and localities.

- Strengthen the capacity of the Convention to Combat Desertification Office.

- Develop mechanisms for mobilizing and utilizing support funds for combating desertification and establishing a Fund for Preventing and Combating Desertification.

2. Expenditure levels:

a) The level of expenditure for tasks, projects, and programs under the Program according to current financial expenditure standards.

b) Some regulations for each source of funding:

- Scientific research funding as stipulated in Circular Joint No. 44/2007/TTLT-BTC-BKHCN dated May 7, 2007, of the Ministry of Finance and the Ministry of Science and Technology guiding the establishment and allocation of budgets for scientific and technological projects using state budget; Circular Joint No. 93/2006/TTLT-BTC-BKHCN dated October 4, 2006, of the Ministry of Finance and the Ministry of Science and Technology guiding the cost-sharing system for scientific and technological projects using state budget and other relevant documents;

- Environmental public expenditure funding as stipulated in Circular Joint No. 114/2006/TTLT-BTC-BTNMT dated December 29, 2006, of the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the management of environmental public expenditure;

- Economic public expenditure funding as stipulated in Circular No. 120/2007/TT-BTC dated October 15, 2007, of the Ministry of Finance guiding the management, use, and settlement of public expenditure for surveys funded by the state budget and other related documents;

- Develop policy mechanisms according to Circular No. 100/2006/TT-BTC dated October 23, 2006, of the Ministry of Finance guiding the management and use of state budget funds to ensure the work of drafting regulatory legal documents.

3. Budget preparation, execution, and settlement:

a) The preparation, execution, and settlement of public expenditure (scientific research public expenditure, education public expenditure, environmental public expenditure, economic public expenditure), administrative management expenses, and development investment funds for implementing tasks, projects, and programs against desertification shall be carried out in accordance with the State Budget Law and current guiding documents. This circular specifically guides the following contents:

- Based on the project list issued together with Decision No. 204/2006/QĐ-TTg dated September 2, 2006,of the Prime Minister, current expenditure regulations, and guidance provided in this circular, ministries, sectors, and localities assigned to lead the implementation of approved projects shall prepare the content and budget for project implementation, phased annually, detailed according to each source of funding as prescribed.

- Based on the objectives, content, and nature of the tasks of the project, the unit preparing the budget shall be approved by the competent authority. For content and tasks without established economic and technical standards and budget unit prices, the preparation of the budget shall be based on specific workload and current financial regulations.

- For tasks, projects, and programs implemented by ministries and central agencies: Based on the tasks and projects approved by the competent authority, units shall annually prepare the budget for project expenses included in their annual state budget expenditure report, which will be reviewed and consolidated by the ministry or central agency leading the task or project and submitted to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and reporting to the Government for approval by the National Assembly as required.

- For tasks, projects, and programs implemented by localities: Based on the tasks, projects, and programs approved by the competent authority, each implementing unit shall annually prepare the budget estimate for the state budget expenditure of the unit, submit it to the main managing department for review, and send it to the Department of Finance for consolidation into the local budget report to be submitted to the People's Council at the provincial level for approval according to current regulations.

b) Settlement of state budget funds:

Units using funds from the Program shall report annual settlement and project completion settlement in accordance with current regulations.

Article 5. Tendering, Approval of Project Proposals and Budgets, and Annual Implementation Plan Coordination

Based on Decision No. 204/2006/QĐ-TTg dated September 2, 2006, issued by the Prime Minister, the Ministries and Provincial People's Committees shall implement the following contents:

a) Announce widely the implementation of program proposal development and project implementation.

b) On the basis of project sponsors' registration, conduct tendering and selection in accordance with current regulations (selecting construction proposals; developing projects; selecting construction contractors for proposals and projects).

c) Coordinate plans and decide on implementation.

Article 6. Inspection Work

1. Annually, the Ministries, central agencies, and localities assigned to implement tasks, projects, and programs shall be responsible for reporting the implementation status to the Ministry of Agriculture and Rural Development (Permanent Office of the Convention to Combat Desertification). The Ministry of Agriculture and Rural Development shall compile the national action plan implementation status on combating desertification, report to the Prime Minister, and send copies to the Ministry of Planning and Investment and the Ministry of Finance. The implementation report (attached form).

2. The Ministries, central agencies, and localities assigned to implement tasks, projects, and programs shall be responsible for coordinating with relevant Ministries and agencies to regularly or urgently inspect the implementation status of tasks, projects, and programs, ensuring that funds are used for their intended purposes and effectively.

Article 7. Implementation Organization

1. Responsibilities of Ministries, Sectors, and People's Committees at all levels

a) Ministry of Agriculture and Rural Development:

- Compile the annual implementation plan of the Program based on reports from Ministries, sectors, and localities, and submit them to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the competent authority for consideration and decision;

- Lead and coordinate with the Ministry of Science and Technology, the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment, the Ministry of Finance, and donors to evaluate the Program's implementation status; compile and report The Prime Minister sends copies to the Ministry of Planning and Investment and the Ministry of Finance.

b) The Ministry of Planning and Investment and the Ministry of Finance, pursuant to the division of labor set out in Decision No. 204/2006/QĐ-TTg of the Prime Minister, based on the proposed plans of Ministries, sectors, and localities, allocate and arrange annual plans in accordance with the provisions of the State Budget Law to implement the Program.

c) Ministries, sectors, and central agencies participating in the Program shall be responsible for complying with the division of labor set out in Decision No. 204/2006/QĐ-TTg of the Prime Minister, inspect subordinate units to ensure full compliance with regulations, and periodically (quarterly, annually) report to the Ministry of Agriculture and Rural Development (Permanent Office of the Convention to Combat Desertification), the Ministry of Planning and Investment, and the Ministry of Finance on progress in management and use of funds and consolidated settlement reports on fund usage for Program implementation in accordance with regulations.

d) People's Committees of provinces and centrally-administered cities:

- Organize effective implementation of Program contents at the locality level in accordance with the division of labor set out in Decision No. 204/2006/QĐ-TTg of the Prime Minister and the approved local plan;

- Integrate resources from other Programs, projects, and proposals within the locality to effectively implement the Program; decide on investment projects to ensure they comply with the project list and tasks issued together with Decision No. 204/2006/QĐ-TTg of the Prime Minister; allocate sufficient funds under the responsibility of the local budget in accordance with regulations;

- Mobilize resources (contributions from enterprises in the locality, communities, and other lawful sources), direct units to urge enterprise and resident contributions in the benefiting areas in accordance with commitments to invest in anti-desertification works; direct and organize the establishment, review, and approval of projects under the Program in accordance with regulations;

- Annually report on Program implementation to the Ministry of Agriculture and Rural Development for consolidation and reporting to the Prime Minister.

2. Effective Date

This Circular takes effect 45 days from the date of issuance.

During implementation, if there are difficulties, organizations, Ministries, central agencies, and localities are requested to reflect them to the Joint Ministry for study and appropriate amendment.