Decision No. 42/2004/QD-BTC of the Minister of FINANCE on the issuance of regulations for central budget expenditure through payment orders

DECISION

Regarding the issuance of regulations on central budget expenditure in the form of payment ordersin the form of a payment order

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THE MINISTER OF FINANCE

Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;

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

Pursuant to Decree No. 77/2003/ND-CP dated July 1, 2003, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law.

At the proposal of the Director of the State Budget Department.

Pursuant to …;

Article 1. The attached Decision hereby promulgates regulations on central budget expenditure in the form of payment orders.

Article 2. This Decision takes effect 15 days from the date of publication in the Official Gazette.

Article 3. The Director of the State Budget Department, the Director of the Public Financial Management Department, the Director of Department I, the Director of the Investment Department, the Director of the Banking and Financial Organization Finance Department, the Director of the Foreign Finance Department; the Director of the Enterprise Finance Department, the Director of the National Reserve Corporation, the General Director of the State Treasury, and the Heads of relevant units within their respective functions and authorities shall be responsible for organizing and implementing this Decision.

 

REGULATIONS

On central budget expenditure in the form of payment orders

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(Attached to Decision No. 42/2004/QD-BTCdated April 22, 2004 of the Minister of Finance)

Article 1. The following central budget expenditure tasks shall be implemented in the form of payment orders.

1. Expenditure tasks with the nature of transferring state budget funds:

1.1. Expenditure for delegating central budget funds to local budgets.

1.2. Supplementary expenditure from the central budget to local budgets.

1.3. Transfer of central budget funds from the previous year to the next year.

1.4. Transfer of funds to the Social Policy Bank for lending to create jobs according to regulations.

1.5. Transfer of funds for households in flood-prone areas to borrow and purchase foundations and build houses in residential clusters in the Mekong Delta provinces; loans for building houses for ethnic minority households and policy households in the Central Highlands and the implementation of other programs and projects as decided by the Government.

1.6. Transfer of funds for paying pensions and social insurance benefits; compensation for implementing policies for persons who have rendered meritorious service to the revolution.

1.7. Transfer of funds to the State Treasury for disbursing and controlling expenditures for certain assigned tasks according to regulations.

2. Expenditure tasks with special characteristics:

2.1. Expenditure for the East Sea and islands program.

2.2. Expenditure for implementing special tasks and other expenditure tasks that are issued in the form of payment orders to the Ministry of Public Security and the Ministry of Defense according to decisions of competent authorities.

2.3. Expenditure to ensure the operation of central agencies of the Communist Party of Vietnam.

3. Direct expenditure tasks for budget users:

3.1. Capital contribution and support expenditure for state financial organizations; capital contribution to funds according to laws.

3.2. Export bonuses and export support.

3.3. Investment and support for enterprises and economic organizations, joint ventures with enterprises; support for enterprises when performing public welfare tasks according to laws.

3.4. Subsidy for interest rate differences on state development credit; post-investment interest subsidy; other interest rate difference subsidies according to government regulations.

3.5. Supplementary national reserve.

3.6. Payment of domestic and foreign debts.

3.7. C, K aid and other aid.

3.8. Freight and price subsidies, placing orders according to state policies.

3.9. Storage costs for national reserves (for important goods entrusted by the state to enterprises for storage).

3.10. Support for non-governmental organizations in performing tasks assigned by the state according to regulations.

3.11. Expenditures in foreign currency according to the regulations of the Minister of Finance.

3.12. Refund of budget revenues according to regulations.

3.13. Recorded budget revenues and expenditures according to regulations.

4. Other budget expenditures as prescribed by the Minister of Finance.

Article 2. Conditions and principles for implementing central budget expenditures through payment orders.

1. Central budget expenditures through payment orders shall be implemented when the following conditions are met:

1.1. They are included in the budget estimate assigned by the competent authority. For expenditure tasks such as supporting enterprises; export awards; export support; or expenditures from increased revenue sources, budget reserves, advance payments against the next year's budget estimate, the basis shall be the Decision or approval of the competent authority.

1.2. They comply with the regulations, standards, and quotas set by the competent authority.

1.3. All required documents and vouchers are complete according to the established procedures.

1.4. There is a request for expenditure issued by the head of the budget-using entity, where the expenditure management system requires such a request.

2. Principles of budget allocation.

2.1. Regular expenditures shall be evenly distributed throughout the year. Seasonal or time-specific expenditures such as basic construction investment, procurement, major repairs, and other non-regular expenditures shall be allocated according to the progress and volume of work as stipulated by relevant expenditure management regulations.

2.2. Payment settlements shall be made to the beneficiary units for expenditures that meet the expenditure conditions and the required documents and vouchers. In cases where the conditions for payment settlement are not yet met, temporary allocations shall be made according to the established procedures or at the discretion of the Minister of Finance, depending on the nature, requirements, and progress of the tasks.

Article 3. Procedures for allocating and controlling central budget expenditures through payment orders.

1. Allocation procedures.

1.1. Based on the assigned budget estimates and the requirements for expenditure tasks, the Ministry of Finance will examine and verify each expenditure request; when all expenditure conditions and required documents and vouchers are met, it will issue a budget payment order to send to the State Treasury for organizations and individuals entitled to budget funds.

1.2. Based on the payment order issued by the financial agency, the State Treasury will disburse the budget funds, transferring the funds into the accounts of organizations and individuals entitled to budget funds according to the content recorded on the payment order and in accordance with established procedures.

2. Expenditure control.

2.1. For expenditure tasks specified in Article 1 of this Regulation, the expenditure control organization must ensure compliance with the provisions of the State Budget Law, guiding documents for the implementation of the State Budget Law, and the provisions of this Decision; for expenditure tasks with separate guiding documents, expenditure control must also be carried out in accordance with the provisions of those documents.

2.2. For expenditure tasks specified in Clause 1.7, Point 1, Article 1 of this Regulation, based on the budget estimate assigned by the competent authority, reports on the progress of task implementation, and the request from the unit, the units under the Ministry of Finance responsible for the allocation of funds shall transfer the funds to the State Treasury to implement the allocation, settlement, and expenditure control according to current guiding documents and ensuring compliance with the State Budget Law and its implementing guidelines.

3. For special nature expenditure tasks: special defense and security expenditures; expenditures to ensure the operation of central agencies of the Communist Party of Vietnam; debt repayment and aid expenditures; supplementary expenditures and delegated fund expenditures for local budgets; the allocation, settlement, and expenditure control procedures shall be carried out according to established procedures.

Article 4. Responsibilities of Ministries, agencies at the level of ministries, government agencies, central-level agencies, Departments of Finance, and budget-using units.

1. Organize the management and use of budget funds for their intended purposes, in accordance with prescribed regulations, economically, and effectively; record accounting, report on the implementation situation, and settle accounts according to the provisions of the law.

2. Guide, monitor, and inspect the use of budgets within their sectors, fields under their jurisdiction, and of subordinate units.

3. Provide all relevant documents and vouchers as required. In cases of direct payment to suppliers of goods or services, written requests must be made.

4. For delegated funds, the Department of Finance shall be responsible for opening accounts at the State Treasury to receive delegated funds from the central budget; manage, allocate, pay, control expenditures, report on the receipt and use of delegated funds, and settle accounts for delegated funds according to prescribed regulations.

Article 5. Responsibilities of units under the Ministry of Finance.

1. Responsibilities of Departments and Bureaus under the Ministry of Finance assigned tasks to manage and allocate budgets for sectors, fields, and units (hereinafter referred to as Departments and Bureaus).

1.1. Based on the budget estimates allocated and the requirements for expenditure of the budgetary unit or budget-using unit, the Departments and Bureaus, according to their assigned functions and responsibilities, shall be responsible for controlling each expenditure item in accordance with the provisions of the State Budget Law, implementing guidelines for the State Budget Law, and the provisions of this Decision.

When the application for allocation of budget funds from units meets the conditions for allocation and payment as prescribed, within a maximum of three working days, except in complex cases requiring additional time for inspection and control, they must issue an approval notice along with related documents and vouchers within a maximum of five working days and send them to the State Budget Department; specifically, for payments outside the country, send a repayment schedule, demand notice, or agreed repayment schedule according to the Agreement.

If the necessary documents and vouchers for payment are not complete, then within one working day, the Departments and Bureaus must notify the budgetary unit or budget-using unit in writing to complete the documents.

Have the right to refuse payment and notify the unit in writing if the conditions for payment are not met as prescribed.

1.2. Issue an approval notice in accordance with the format specified in this Decision, accurately and fully recording all items on the approval notice. The figures and contents on the approval notice must be clear, without any strikethroughs, erasures, or corrections; ensuring consistency between details and totals, and between amounts in words and figures.

1.3. Be responsible for guiding, inspecting, supervising, and urging central-level agencies and budget-using units in managing and using budget funds, organizing reports on the use of state budget capital, and consolidating and reviewing final settlement reports according to prescribed regulations.

1.4. The Heads of Departments and Bureaus are responsible for deciding on central government budget expenditures by issuing payment orders.

2. Responsibilities of the State Budget Department.

2.1. After receiving the approval notices from the Departments and Bureaus, the State Budget Department shall review the completeness and legality of the supporting documents and vouchers. If the conditions for payment are met as prescribed, issue a payment order to the State Treasury to request payment or settlement within three working days. If there are issues with the documents, procedures, or if the approval notice lacks required items or does not conform to the prescribed format, the State Budget Department must notify the Departments and Bureaus within one working day of receiving the documents to supplement and complete them as required.

2.2. The State Budget Department has the right to refuse to issue a payment order for expenditures that do not meet the conditions for payment as prescribed, but must immediately inform the Departments and Bureaus and bear responsibility for their decision.

3. Responsibilities of the State Treasury.

3.1. The State Treasury is responsible for verifying the legality of payment orders; based on the content of the payment order, implement the disbursement of budget funds, transfer money to accounts, or provide cash according to prescribed regulations to make payments or settlements to organizations and individuals entitled to the budget within the prescribed timeframe. If the supporting documents are not valid or legal, the State Treasury must immediately notify the State Budget Department within one day of receiving the documents.

Specifically, for expenditures as stipulated in Point 1.7 Clause 1 Article 1 of this Regulation, based on the funds transferred by units under the Ministry of Finance, the State Treasury is responsible for controlling expenditures according to regulations before implementing the disbursement of budget funds for payment or settlement to beneficiaries.

3.2. Record, account for, and report on budget expenditures according to prescribed regulations.

3.3. Notify and guide local State Treasuries on the procedures for making payments or settlements for central government budget expenditures through payment orders.

FORM NO. 01

Payment Order Number: Day / /………

APPROVAL NOTICE FOR BUDGET ESTIMATE

No.: …/ .…

The Ministry of Finance approves the budget estimate of:…

Budget Unit Code ^(*):......................................................................................

Chapter…A Type…Item…

Reason for Expenditure:…

REVIEW:

......................................................................................................................

Note: (*) If the unit does not have a Budget Unit Code, it may use its tax code.

FORM NO. 02

Payment Order Number: Day / /………

APPROVAL NOTICE FOR BUDGET ESTIMATE

No.: …/…

The Ministry of Finance approves the budget estimate of: …

Budget Unit Code:…

Chapter…A Type…Item…

Reason for Expenditure:…

NOTES:

- Based on …

Request the Branch of the State Treasury to process: …USD

(In Words:...............................................................................US Dollars)

As follows:

1- Cash: …USD

2- Transfer: .. . USD

to Account: at Bank…

3- Bank Fee: …

Note: This form is used when allocating budget expenditures in foreign currency.

FORM NUMBER 03

Payment Order Number:…Day…/…/…

APPROVAL NOTICE FOR BUDGET ESTIMATE

No.:…/…

The Ministry of Finance approves the budget estimate of: …

Budget Unit Code:…Chapter 160A Type…Item…

Debtor Country:…

Reason for Expenditure:…

REMARKS

- On the basis of…

The Ministry of Finance requests the State Treasury Transaction Office to process the withdrawal from the Central Foreign Currency Fund:

Amount (in figures):…

In words:…

To pay to:…

Account number: (state clearly the account number and name of the transaction bank)

Reason:…

Note: This form is used in cases of foreign debt repayment in foreign currency.