Circular No. 41/2000/TT-BTC guides the financial management for national target programs and target programs applying the mechanism of national target programs.

CIRCULAR

Guidelines for financial management of national target programs and programs applying the mechanism of national target programs

and programs with targets that apply the mechanism of national target programs

Pursuant to Decision No. 531/TTg dated August 8, 1996 of the Prime Minister on managing national programs;

Pursuant to Decision No. 38/2000/QĐ-TTg dated March 24, 2000 of the Prime Minister amending and supplementing certain provisions of Decision No. 531/TTg dated August 8, 1996 of the Prime Minister on managing national programs;

The Ministry of Finance issues guidelines for financial management of national target programs and programs applying the mechanism of national target programs (hereinafter referred to collectively as target programs) as follows:

I. On the allocation and registration of budget estimates for target programs:

For central ministries and agencies: Based on the state budget estimates assigned by the Prime Minister, the Ministry of Finance and the Ministry of Planning and Investment have directed and implemented the assignment of tasks to subordinate units, which shall submit to the Ministry of Finance in accordance with regulations to serve as the basis for budget disbursement.

For localities: Annually, based on the total budget estimates of target programs assigned by the Prime Minister, the Ministry of Finance directs and mobilizes local resources according to the law to supplement the implementation of target programs. People's Committees of provinces and centrally-administered cities (hereinafter referred to collectively as provinces) integrate these target programs within their jurisdictions and arrange and allocate funds for each target program.

In 2000, for important target programs that have been detailed (Investment in Infrastructure of Particularly Difficult Communes; HIV/AIDS Prevention Program; Program for Eradicating Certain Social Diseases and Dangerous Epidemics), it is necessary to ensure the minimum level of capital and funding allocated, not lower than the guidance provided in Decision No. 91/1999/QĐ-BTC dated December 29, 1999 of the Minister of Finance; at the same time, clearly distinguish development investment and public service funds of target programs according to the guidance provided in Decision No. 123/1999/QĐ-BKH dated December 29, 1999 of the Minister of Planning and Investment.

Annual budget allocations by provincial People's Committees must be submitted to the Ministry of Finance, the Ministry of Planning and Investment, and the program management agency (the portion of funds managed by the program management agency is responsible for monitoring implementation) before January 31, specifying the central government budget and the portion of local mobilized funds according to regulations to serve as the basis for budget disbursement; for the year 2000, the budget allocation must be submitted before June 15.

II. On the disbursement of capital and funds for target programs:

1. Disbursement methods:

1.1For tasks of target programs managed centrally: The Ministry of Finance disburses to central ministries and agencies to implement the tasks of target programs.

1.2For tasks of target programs managed locally (including construction investment and public service funds): The Ministry of Finance supplements and disburses to provinces to implement the following target programs:

(1)National Poverty Reduction Program (including construction investment for economic and social development programs in particularly difficult mountainous communes and remote areas).

(2)National Population and Family Planning Program.

(3)National Program for Eradicating Certain Social Diseases and Dangerous Epidemics.

(4)National HIV/AIDS Prevention Program.

(5)National Clean Water and Environmental Sanitation Program in Rural Areas.

(6)National Sports Program.

(7)National Employment Support Program until 2000 (excluding the loan component for employment resolution, which continues to be disbursed through the state treasury system according to current regulations).

(8)Crime Prevention Program.

(9)Technical Economic Programs: Information Technology, Automation, Materials Science, Biotechnology.

(10)Drug Control Program.

(11)Five Million Hectares Reforestation Project.

(12)Program for Exploitation and Utilization of Degraded Land, Riverbanks, Coastal Areas, and Surface Waters in Delta Regions (Program 773).

(13)Radio Coverage Program.

(14)Television Coverage Program.

(15)Education and Training Program.

(16)Culture Program.

(17)Child Care Program.

(18)Prostitution Prevention Program.

(19)National Nutrition Action Plan.

(20)Target for Upgrading Medical Equipment.

(21)Commune Cluster Construction Program in Mountainous and Highland Areas.

(22)Support for Development Investment in Television Industry from Advertising Revenue.

For the year 2000, the Prime Minister has assigned the budget for the Radio Coverage Program and the Television Coverage Program to Vietnam Voice Radio and Vietnam Television (not to localities); the Ministry of Finance will disburse to Vietnam Voice Radio and Vietnam Television according to the approved budget estimates.

1.3For mobilization preparation funds: Implement the management and disbursement mechanism for authorized funds according to the guidance provided in Circular No. 680 TC/VI dated April 23, 1993 of the Ministry of Finance.

1.4Subsidies: Implement the management and disbursement mechanism for authorized funds to localities according to Decree No. 20/1998/NĐ-CP dated March 31, 1998 of the Government.

1.5For the East Sea and Island Program: Implement the management and disbursement mechanism according to Circular No. 06/KHĐT-TC-BBGCP dated July 25, 1996 of the Joint Ministry of Planning and Investment, Finance, and Government Border Committee.

1.6For the 1999 funds of target programs:

For construction investment funds that continue to be settled and finalized according to the guidance provided in Circular No. 560 TC/NSNN dated February 18, 2000 of the Ministry of Finance and other relevant documents (if applicable).

For the Five Million Hectares Reforestation Project funds; Program 773; Commune Cluster Construction Program; Border Road Program; construction investment funds for economic and social development programs in particularly difficult mountainous communes and remote areas (if remaining), if authorized to continue implementation, shall be applied according to the 1999 management mechanism.

2. Disbursement process: Follow the current regulations, specifically:

2.1 For the funds allocated to ministries, central agencies, and supplementary targeted funds for localities:

Investment capital for construction projects: The financial agency transfers the capital to the State Treasury for disbursement and payment to projects under the management mechanism for investment construction capital.

Operating expenses: The financial agency disburses funds to units implementing target programs according to the administrative operating expense disbursement mechanism.

2.2 For the basic construction investment capital of the Economic and Social Development Program for particularly difficult communes in mountainous areas and remote regions (Program 135), the Commune Center Construction Program, the New Forest Planting Program of 5 million hectares, and Program 773:

Implement Decision No. 38/2000/QĐ-TTg dated March 24, 2000, of the Prime Minister; from 2000, the central budget supplements targeted funds for local budgets along with the funds of other target programs; simultaneously, the Ministry of Finance issues a notification to provincial People's Committees and cities about the total amount of capital and funds transferred in each batch to localities.

Based on the decision allocating capital and funds for each target program, on each district level of the provincial People's Committee and city, and the amount of capital and funds already transferred by the higher-level financial agency; local financial agencies at all levels have the responsibility to promptly and fully transfer capital and funds to implement the programs and targets to the State Treasury system. The State Treasury system has the responsibility to timely pay the capital and funds for the volume of work completed by the programs and projects according to the regulations stipulated in Circular Joint No. 416/1999/TTLT/BKH-UBDTMN-TC-XD dated April 29, 1999, of the Ministry of Planning and Investment, the National Ethnic Minorities Commission, the Ministry of Finance, and the Ministry of Construction regarding guidance on investment management and infrastructure construction in particularly difficult communes in mountainous areas and remote regions.

2.3 For delegated funds: Implemented according to the provisions of Circular No. 103/1998/TT-BTC dated July 18, 1998, of the Ministry of Finance guiding the decentralization, preparation, implementation, and settlement of the state budget.

3. Provincial People's Committees have the responsibility to direct and organize the implementation of programs and targets and the disbursement and payment of capital and funds for programs and targets as prescribed.

III. Regarding the funds for the program management agency:

1. For the Central Program Management Board: Operating expenses are allocated within the administrative operating expenditure budget of ministries and program management agencies; ministries and program management agencies allocate and transfer operating expenses to the Program Management Board to organize and implement the program (except for the operating expenses of the National Program Management Board for the treatment of social diseases and dangerous epidemics, which are arranged within the operating expenditure budget for health services).

2. For the operating expenses of the local program management boards: Based on the allocated local budget estimate, provincial People's Committees allocate and publicize the operating expenses of the provincial, district, and commune program management boards; while ensuring the operating expenses for the program management boards to organize and implement the programs and targets on their territory.

3. For the National Population and Family Planning Program: The budget estimates for target programs in 2000 allocated to localities include the administrative operating expenses for the local population and family planning management machinery. When allocating funds, localities need to allocate funds for the Population and Family Planning Program including the administrative operating expenses for the local population and family planning management machinery.

The content of the tasks for managing target programs at the central, provincial, district, and commune levels is implemented according to the authorized budget estimate and expenditure regulations.

IV. Regarding reporting and settling accounts for target program funds:

Quarterly and annually, ministries, central agencies, and provincial People's Committees have the responsibility to report on the implementation of assigned target programs (including the volume, tasks, and funds implemented during the period) to the Ministry of Planning and Investment, the Ministry of Finance, and the program management agency (the portion of funds managed by the program management agency is responsible for monitoring implementation).

Target program funds disbursed in the form of supplementary targeted funds are settled into the local budget according to chapters, types, clauses, sections, and sub-sections of the State Budget Manual (including basic construction investment capital for the Economic and Social Development Program for particularly difficult communes in mountainous areas and remote regions; the new forest planting project of 5 million hectares, and the Commune Center Construction Program). The Ministry of Finance consolidates the settlement of the local budget (including the settlement of program implementation expenditures) into the overall settlement of the state budget.

Target program funds disbursed in the form of delegated funds are settled according to current regulations.

V. Implementation Organization:

This circular takes effect from January 1, 2000; previous regulations contrary to this circular are abolished.

The objectives of the old national programs specified in Circular No. 04/CP-VX dated January 4, 1999, and Decision No. 19/1998/QĐ-TTg dated January 24, 1998, of the Prime Minister continue to be implemented under the financial mechanism stipulated in Decision No. 38/2000/QĐ-TTg dated March 24, 2000, of the Prime Minister until the end of 2000. From 2001, ministries, central agencies, and provinces will arrange annual regular funds to implement them.

For the funds of target programs in the first quarter of 2000 temporarily allocated by the Ministry of Finance to provinces in the form of delegated funds: The Ministry of Finance implements adjustments from delegated fund disbursement to supplementary targeted fund disbursement; based on the data of the Ministry of Finance, the Central State Treasury directs local State Treasuries to coordinate with the Department of Finance and Prices to adjust from delegated fund disbursement to supplementary targeted fund disbursement to ensure unified management. Specifically:

Record the reduction in expenditure for the allocated authorized budget at the chapter, type, clause, section, sub-section level that has been disbursed, and record the increase in targeted supplementary expenditure for the local budget.

The authorized budget funds allocated directly to units for use by the Department of Finance and Prices shall be transferred to the local budget expenditure accounting and settled in the local budget expenditure settlement.

For the remaining balance of the authorized budget funds not yet spent, it can continue to be spent and recorded as a transfer from the central budget to supplement the local budget.

Ministries, central agencies, People's Committees of provinces shall base on Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance guiding the decentralization, preparation, implementation, and settlement of the state budget, and the provisions of this Circular, to guide agencies, units, and local authorities to organize and implement. In case of any difficulties arising during the implementation process, please report to the Ministry of Finance for consideration and resolution./.