CIRCULAR

Guidelines for the management, allocation, and payment of budget expenditures denominated in foreign currency through the State Treasury Central Office

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Pursuant to the State Budget Law dated March 20, 1996, and Decree No. 87/CP dated December 19, 1996, of the Government on the decentralization of management, preparation, implementation, and settlement of the State Budget;

Pursuant to the Law Amending and Supplementing Certain Provisions of the State Budget Law No. 06/1998/QH10 dated May 20, 1998, and Decree No. 51/1998/NĐ-CP dated July 18, 1998, of the Government amending and supplementing certain provisions of Decree No. 87/CP dated December 19, 1996, detailing the decentralization of management, preparation, implementation, and settlement of the State Budget;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of ministries, ministerial-level agencies;

BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;

The Ministry of Finance issues guidelines for the management and allocation of certain expenditures denominated in foreign currency for units under the central state budget at the State Treasury Central Office as follows:

I. GENERAL PROVISIONS

1. Expenditures denominated in foreign currency shall be allocated in the form of payment orders including:

- Payment of foreign debt.

- Aid to international organizations and foreign countries pursuant to the Decision of the Government.

- Funding for Vietnamese agencies abroad.

- Contributions to special international organizations (ADB, WB, IMF, etc.).

- Operational expenses, importation of equipment and materials for security and defense.

- Subsidies and training for overseas Vietnamese students according to the decision of the Minister of Education and Training (including subsidies, tuition fees, air tickets, living expenses of students).

- Other expenditures as decided by the Prime Minister and the Minister of Finance (defense, security, capital investment for basic construction projects under the State Budget).

2. Expenditures denominated in foreign currency shall be allocated in the form of Limit of funds year calculated in Vietnamese Dong includes:

- Expenses for delegations traveling abroad.

- Annual membership fees for international organizations.

- Purchase of information and payment of broadcasting fees.

- Other expenditures as decided by the Minister of Finance.

3. Responsibilities of units under the central state budget:

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: CBased on the annual state budget assigned by the Government, Ministries, agencies equivalent to ministries, and government-affiliated agencies (hereinafter referred to as budgetary units) shall prepare and allocate the budget according to the State Budget Schedule, providing detailed explanations of foreign currency expenditures to the Ministry of Finance.

b. Budgetary units are responsible for managing, using, and settling foreign currency expenditures according to current regulations stipulated in Circular No. 103/1998/TT-BTC dated July 18, 1998, guiding the decentralization, preparation, implementation, and settlement of the State Budget; Circular No. 40/1998/TT-BTC dated March 31, 1998, guiding the management, allocation, and payment of budget expenditures through the State Treasury; Circular No. 45/1999/TT-BTC dated May 4, 1999, and Circular No. 108/1999/TT-BTC dated September 4, 1999, specifying travel expense regulations for civil servants traveling short-term abroad; Circular No. 21/2000/TT-BTC dated March 16, 2000, guiding the review and notification of final settlements for administrative and service units under the Ministry of Finance, and specific provisions of this Circular.

c. Budgetary units under the central state budget directly transact with the State Treasury Central Office to open accounts for the limit of funds calculated in Vietnamese Dong to cover the foreign currency expenditures mentioned in Point 2, Section I.

II. SPECIFIC PROVISIONS

1. Preparation of foreign currency expenditure budgets:

- Foreign currency expenditure estimates are part of the state budget estimates of budgetary units under the central state budget.

- Foreign currency expenditure budgets are calculated in US dollars converted to Vietnamese Dong according to the planned exchange rate set by the Ministry of Finance.

2. Allocation of annual budget estimates:

Based on the decision assigning the annual state budget estimates by the Government, budgetary units allocate according to the State Budget Schedule, including detailed estimates of foreign currency expenditures mentioned in Points 1 and 2, Section I (Model 1) to be sent to: Ministry of Finance (Department of Specialized Management, Department of Foreign Currency, Department of State Budget).

3. Control of foreign currency expenditures:

3.1.For the foreign currency expenditures mentioned in Point 1, Section I of this Circular, payment orders shall be issued clearly stating the amount of foreign currency expenditures and converted to Vietnamese Dong according to the accounting exchange rate prescribed by the Ministry of Finance, which shall be submitted to the State Treasury Central Office. The State Treasury Central Office shall record state budget expenditures in Vietnamese Dong while simultaneously drawing from the centralized foreign currency fund to settle foreign currency expenditures according to the content recorded in the payment order and the approved budget estimate.

3.2.For the foreign currency expenditures mentioned in Point 2, Section I, they shall be allocated in the form of an annual limit of funds. The State Treasury Central Office shall control state budget expenditures, draw from the centralized foreign currency fund of the State to allocate and settle payments for the unit, recording in Vietnamese Dong corresponding to the amount of foreign currency, according to the accounting exchange rate prescribed by the Ministry of Finance, deducting from the unit's limit of funds in Vietnamese Dong, specifically as follows:

3.2.1.Allocation of foreign currency for payment for short-term delegations traveling abroad:

a. Budgetary units are responsible for managing delegation funds from the budget preparation stage, advance payments, and finalization for each delegation and individual.

b. Budgetary units may only use the funds within the limits provided in the budget estimate and notified by the Ministry of Finance to the State Treasury Central Office.

c. Based on the provisions of Circular No. 40/1998/TT-BTC dated March 31, 1998, guiding the management, allocation, and payment of budget expenditures through the State Treasury, Circular No. 45/1999/TT-BTC dated May 4, 1999, and Circular No. 108/1999/TT-BTC dated September 4, 1999, of the Ministry of Finance specifying travel expense regulations for civil servants traveling short-term abroad, and the withdrawal of the limit of funds (model number 2), the State Treasury Central Office shall provide provisional foreign currency payments to the unit and deduct from the unit's limit of funds in Vietnamese Dong.

d. The State Treasury Central Office manages and allocates delegations according to the annual limit of funds for each budgetary unit as notified by the Ministry of Finance.

e. Within 15 days after the delegation returns, the budgetary unit is responsible for submitting the foreign currency expenditure settlement for the delegation to the State Treasury Central Office to settle provisional payments. Based on the reviewed and approved foreign currency expenditure settlement documents of the delegation and the unit's request for provisional payment settlement (according to model C2-06/KB of the State Treasury Central Office), the State Treasury Central Office shall transfer provisional state budget payments to actual state budget expenditures and process excess or shortage settlements between delegations.

+ If the expenditure exceeds the settlement of the delegation, the budgetary unit will be supplemented with foreign currency by the State Treasury Central Office and deducted from the annual limit.

+ If the expenditure is less than the settlement of the delegation, the budgetary unit shall deposit the excess foreign currency into the centralized foreign currency fund, and the State Treasury Central Office shall increase the Vietnamese Dong in the unit's annual limit account.

During the implementation process in the year, if there are remaining missions for outgoing delegations and the remaining budget limit for the expenditure item "115" has been exhausted, the budgetary unit shall work with the Ministry of Finance to adjust the expenditure item or request the Prime Minister to supplement the budget for the outgoing delegation. In the case where the remaining balance of the budget limit for item 115 cannot be fully utilized by the end of the year, it will be handled according to the current budget allocation system.

By December 31 of each year, the budgetary unit must deposit excess foreign currency funds into the Central Foreign Currency Fund and the State Treasury shall reduce the state budget expenditures of the budgetary unit according to the corresponding chapter and item.

g. The budgetary unit is responsible for settling accounts for foreign currency expenditures equivalent to Vietnamese dong together with quarterly and annual settlements of the unit.

3.2.2 Issuance of foreign currency for payment of annual subscriptions, purchase of news, and broadcasting fees:

a. For expenditure items on annual subscriptions for international organizations (item 157); Purchase of news (item 119).

Based on the foreign currency expenditure budget attached with relevant payment documents (payment contracts, demand notices from international organizations) and withdrawal of budget limits, the State Treasury Central shall issue payments in foreign currency equivalent to Vietnamese dong at the accounting exchange rate prescribed by the Ministry of Finance and deduct from the annual budget limit.

b. For the issuance for expenditure item 111 broadcasting, transmitting information to serve high-level delegations of the Party, Government, and National Assembly on overseas trips, this shall be carried out similarly to the issuance of foreign currency for overseas delegations.

4. Settlement of foreign currency expenditures:

Financial authorities are responsible for consolidating the settlement of foreign currency expenditures of budgetary units in accordance with the current regulations of the Ministry of Finance.

III. IMPLEMENTATION

This Circular takes effect from July 1, 2001.

During implementation, if there are difficulties or obstacles, please promptly reflect them to the Ministry of Finance for research and resolution.