Joint Circular No. 45/2010/TTLT-BTC-BTNMT guiding the management of environmental public service funds

JOINT CIRCULAR

Guidelines for managing environmental public expenditure

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Pursuant to the Law on Environmental Protection No. 52/2005/QH11 adopted by the National Assembly of the Socialist Republic of Vietnam at its 11th session, eighth meeting, dated November 29, 2005;

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

To unify the management of environmental public expenditure, the Ministry of Finance and the Ministry of Natural Resources and Environment jointly issue the following guidelines:

Article 1. General Provisions

Article 1. This Circular stipulates the management of environmental public expenditure for implementing environmental protection tasks guaranteed by the state budget.

1. Environmental protection tasks carried out by ministries, agencies equivalent to ministries, government agencies, and other central agencies (hereinafter referred to as ministries and central agencies) shall be funded from the central budget; environmental protection tasks carried out by local agencies and units shall be funded from the local budget.

The Ministry of Finance shall take the lead in coordinating with the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, and People's Committees of provinces and centrally-administered cities to submit to competent authorities for allocation of environmental public expenditure not less than 1% of the total state budget revenue and expenditure in the annual budget estimate.

2. Projects and programs on environmental protection must be approved by competent authorities before they can be allocated funds and implemented.

3. Agencies, organizations, and individuals must use environmental public expenditure for their intended purposes, in accordance with regulations, and be subject to inspection and supervision by competent authorities, and settle accounts for the funds used, and implement the current public finance transparency system.

4. Tasks funded from the state budget for environmental protection from other sources (such as expenditures from scientific public services, construction investment capital, and other sources) are not within the scope of this Circular's provisions.

Article 2. Allocation of tasks for environmental protection expenditure.

1. Central budget tasks include:

a) Ensuring the operation of the national environmental monitoring and analysis system according to Decision No. 16/2007/QĐ-TTg dated January 29, 2007 of the Prime Minister approving the overall planning of the national resource and environment monitoring network until 2020 managed by central agencies (including the network of monitoring stations and environmental analysis); implementing environmental status monitoring programs, and assessing environmental impacts.

b) Supporting environmental protection tasks under approved projects, including: project development, surveying, pollution assessment, environmental pollution treatment, purchasing technology licenses for waste treatment (if applicable), project inspection, and acceptance:

- Projects thoroughly treating serious pollution sources in public utility areas managed by the central government (for projects with the nature of public service expenditure allocated from environmental public expenditure), listed in Decision No. 64/2003/QĐ-TTg dated April 22, 2003 of the Prime Minister approving the plan to thoroughly treat serious pollution sources; Decision No. 58/2008/QĐ-TTg dated April 29, 2008 of the Prime Minister providing targeted support from the state budget to thoroughly address, mitigate pollution, and reduce environmental degradation for certain public utility entities.

- Collecting, transporting, reducing, recycling, processing, and landfilling residual waste, controlling emission sources, and persistent pollution points managed by the central government.

- Projects treating waste for some hospitals, healthcare facilities, schools, and state detention centers managed by the central government without revenue or low revenue.

- Environmental protection projects and programs allocated from environmental public expenditure according to Prime Minister's decisions.

c) Implementing national prevention and response to environmental incidents, including supporting equipment and activities related to environmental rescue operations; handling environmental pollution caused by natural disasters.

d) Managing state nature reserves; managing facilities for caring, breeding, and conserving endangered species managed by the central government.

đ) Building and maintaining the national environmental information system (including data collection, processing, and exchange); community environmental warning information system.

e) Regular and extraordinary environmental reports; reviewing strategic environmental impact assessments.

g) Developing and promulgating economic and technical standards, technical procedures for environmental protection; developing strategies, plans, and programs for environmental protection.

h) Conducting inspection and supervision activities on the implementation of environmental protection laws.

i) Promoting, disseminating, and educating about environmental laws; training specialized knowledge and skills in environmental protection up to provincial level.

k) Awarding national prizes and honors for environmental protection achievements decided by competent authorities.

l) Activities of steering committees, management boards, and permanent offices for environmental protection decided by competent authorities; counterpart funding for international cooperation projects on environmental protection (if applicable).

m) Supporting the Vietnam Environmental Protection Fund.

n) Supporting localities according to projects decided by competent authorities.

p) Reviewing environmental impact assessment reports (after the competent state agency issues regulations on EIA report review fees, it will allocate funds from retained fees to implement).

q) Other activities related to environmental protection tasks.

2. Local budget tasks include:

a) Ensure the operation of the environmental monitoring and analysis system pursuant to Decision No. 16/2007/QD-TTg dated January 29, 2007 of the Government Chairman on approving the overall planning of the national network for resource and environmental monitoring until 2020 managed by local agencies and units (including the environmental monitoring and analysis station network); implement current environmental monitoring programs, the impacts on the environment of the locality.

b) Support environmental protection tasks under approved projects, including: project development, surveying and investigating, assessing pollution conditions, implementing pollution treatment, purchasing waste treatment technology licenses (if applicable), inspecting and accepting projects:

- Projects thoroughly treating facilities causing serious environmental pollution in public utility areas managed by the locality (for projects with the nature of state budget allocations for environmental protection purposes) listed in Decision No. 64/2003/QD-TTg dated April 22, 2003 of the Government Chairman on approving the plan for thoroughly treating facilities causing serious environmental pollution; Decision No. 58/2008/QD-TTg dated April 29, 2008 of the Government Chairman on providing targeted support from the state budget to thoroughly treat, mitigate pollution, and reduce environmental degradation for certain entities in the public utility sector.

- Collecting, transporting, reducing, recycling, processing, and landfilling waste in the locality's management area. Operating sanitary landfill sites.

- Waste treatment projects for some hospitals, healthcare facilities, schools, and state detention centers managed by the locality without revenue or low revenue.

- Environmental protection projects funded from the state budget for environmental protection purposes as decided by the competent authority.

c) Manage public sanitation works; support the provision of equipment and means for collecting household waste and maintaining environmental hygiene in residential areas and public places.

d) Implement prevention and response to local environmental incidents; including supporting equipment and activities for environmental rescue operations; supporting environmental treatment after environmental incidents.

đ) Manage state nature conservation areas; manage facilities for caring, breeding, and propagating endangered species at risk of extinction managed by the locality.

e) Establish and maintain an environmental information and database system for the locality (including data collection, processing, and exchange); community environmental warning information system.

g) Regular and ad hoc environmental reporting; review strategic environmental impact assessments of the locality.

h) Develop and promulgate economic and technical standards, technical procedures for environmental protection in the locality; develop environmental protection strategies, plans, and programs.

i) Conduct inspection and supervision activities regarding the implementation of environmental protection laws in the locality.

k) Promote, disseminate, and educate about environmental laws; provide specialized training on environmental protection.

l) Allocate awards and honors for organizations and individuals contributing to environmental protection tasks as decided by the competent authority.

m) Activities of the Steering Committee, Management Board, and Permanent Office for environmental protection as decided by the competent authority; counterpart funds for international cooperation projects on environmental protection (if applicable).

n) Support the Environmental Protection Fund of the locality (if applicable).

p) Confirm environmental protection commitments.

q) Other activities related to environmental protection tasks.

The specific division of environmental protection expenditure tasks mentioned above from the local budget for various levels of the local budget shall be determined by the Provincial People's Committee and submitted to the same-level People's Council for decision.

Article 3. Level of Expenditure:

The level of expenditure for implementing environmental protection tasks shall be carried out according to the current financial expenditure standards and regulations stipulated by competent state agencies.

Specifically, some levels of expenditure are as follows:

- Travel expenses, conference fees, and training costs shall be implemented in accordance with the Circular of the Ministry of Finance on travel expense regulations and financial expenditure regulations for organizing conferences for state agencies and public service units.

- Costs for building databases shall be implemented in accordance with Circular No. 137/2007/TT-BTC dated November 28, 2007, of the Ministry of Finance guiding the level of expenditure for creating electronic information; Joint Circular No. 43/2008/TTLT-BTC-BTTTT dated May 26, 2008, of the Ministry of Finance and the Ministry of Information and Communications guiding the management and use of funds for applying information technology in the activities of state agencies.

- Analysis sample costs shall be implemented in accordance with Circular No. 83/2002/TT-BTC dated September 25, 2002, of the Ministry of Finance stipulating the system of collection, payment, and management and use of fees and charges related to quality standards and other current regulations.

- Support levels for thoroughly addressing serious pollution sources in public welfare areas shall be implemented in accordance with Decision No. 58/2008/QĐ-TTg dated April 29, 2008, of the Prime Minister regarding targeted support from the state budget to thoroughly address, mitigate, and reduce environmental degradation for certain entities in public welfare areas.

This Circular provides detailed guidance on additional levels of expenditure (as attached in the appendix).

Article 4. Budget Preparation, Execution, and Settlement:

The preparation, allocation, execution, and settlement of environmental public service expenditure shall be carried out in accordance with the State Budget Law and its guiding documents; this Circular provides detailed guidance on the following additional contents:

2. In cases where tasks are not implemented according to the plan, or if funds are misused or used contrary to regulations, such tasks shall be suspended, and funds used for improper purposes shall be recovered and remitted to the state treasury as prescribed.

Based on approved environmental protection tasks, the budget estimate for implementing environmental protection tasks shall be prepared in accordance with Joint Circular No. 01/2008/TTLT-BTNMT-BTC dated April 29, 2008, of the Ministry of Natural Resources and Environment and the Ministry of Finance guiding the preparation of environmental protection work budgets from public service environmental funds.

2. Budget Preparation and Allocation Process:

Annually, based on the Prime Minister's Directive on developing socio-economic plans and the next year's state budget estimates, and the Circular guiding the preparation of the next year's state budget issued by the Ministry of Finance, the Ministry of Natural Resources and Environment will provide professional guidance and key tasks for environmental protection activities for central ministries and agencies and provinces/cities directly under the central government, serving as the basis for preparing environmental public service budgets.

- At the central level:

Central ministries and agencies will provide professional guidance and key tasks for environmental protection activities for their subordinate units.

The Ministry of Finance will proactively allocate and notify each central ministry and agency of the inspection expenditure for environmental public services for the next year.

Central ministries and agencies will prepare the environmental public service budget and send it to the Ministry of Natural Resources and Environment, while also consolidating it into the next year's budget to send to the Ministry of Finance and the Ministry of Planning and Investment in accordance with the State Budget Law.

The Ministry of Natural Resources and Environment will consolidate the environmental public service budgets of central ministries and agencies and submit them to the Ministry of Finance before August 20th of the preceding year for inclusion in the central budget allocation plan to be reported to the Government for submission to the National Assembly for consideration and decision.

- At the Local Level:

Provincial Departments of Natural Resources and Environment will provide professional guidance and key tasks for local environmental protection activities.

Local financial authorities will proactively propose allocations of inspection expenditure for environmental public services to be submitted to the People's Council at the same level for notification to each subordinate agency and unit.

Local agencies and units will prepare the environmental public service budget and send it to the natural resources and environment authority, while also consolidating it into the next year's budget to send to the financial authority and planning and investment authority at the same level in accordance with the State Budget Law.

Local natural resources and environment authorities will consolidate the environmental public service budgets of agencies and units and submit them to the financial authority at the same level for review and consolidation into the local budget expenditure plan to be reported to the People's Council for submission to the People's Council at the same level for consideration and decision.

The Department of Natural Resources and Environment will coordinate with the Department of Finance to report to the provincial People's Council for submission to the provincial People's Council to determine the total expenditure level for environmental public services in the local budget, ensuring it does not fall below the guided expenditure level for environmental public services announced by the Ministry of Finance.

3. Accounting Treatment: Environmental public service expenditure as stipulated in this Circular shall be reflected and settled in Category 280 "Environmental Protection Activities" with corresponding Clauses, according to the relevant Chapters of ministries, sectors, and localities, and detailed according to the State Budget Item List.

Article 5. Inspection and supervision:developmentCentral and local management agencies shall be responsible for coordinating with financial agencies and environmental resources agencies at the same level to periodically and randomly inspect subordinate units on their implementation of environmental protection tasks, management and use of environmental public expenditure, settlement and finalization of such expenditures, to ensure that funds are used for their intended purposes and effectively.

This Circular takes effect 45 days from the date of signature and replaces Circular Joint No. 114/2006/TTLT-BTC-BTNMT dated December 29, 2006, issued by the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the management of environmental public expenditure.

Article 6. Implementation Organization

For contents of expenditure from environmental public funds not specified in this Circular, they shall be implemented according to current guiding documents of the Ministry of Finance and the Ministry of Natural Resources and Environment.

During the implementation process, if there are any difficulties, units are requested to report to the Ministry of Finance and the Ministry of Natural Resources and Environment for research, amendment, and supplementation to make it appropriate.

- Central mass organizations;