Circular No. 48/2011/TT-BTC guides the determination of needs, sources, and methods of expenditure to implement hardship allowances for cadres, civil servants, public officials, armed forces personnel, pensioners with low pensions, beneficiaries of preferential policies for persons who have rendered meritorious service to the nation, and poor households with difficult living conditions.

CIRCULAR

Guidelines for determining needs, sources, and methods of expenditure to implement hardship allowances for cadres, civil servants,  public officials, armed forces personnel, pensioners with low pensions, beneficiaries of preferential allowances,  those who have rendered meritorious service, and poor households with difficult living conditions

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Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 471/QD-TTg dated March 30, 2011 of the Prime Minister on hardship allowances for cadres, civil servants, public officials, armed forces personnel, pensioners with low pensions, beneficiaries of preferential allowances for those who have rendered meritorious service, and poor households with difficult living conditions;

The Ministry of Finance guides the determination of needs, sources of funds, and methods of expenditure to implement hardship allowances for cadres, civil servants, public officials, armed forces personnel, pensioners with low pensions, beneficiaries of preferential allowances for those who have rendered meritorious service, and poor households with difficult living conditions as follows:

Article 1. General Provisions:

1. The subjects entitled to hardship allowances within the scope of guidance of this Circular shall be implemented in accordance with Article 1 of Decision No. 471/QD-TTg dated March 30, 2011 of the Prime Minister (hereinafter referred to as Decision No. 471/QD-TTg) and specific guidelines of the Ministry of Labor, Invalids and Social Affairs.

2. The level of hardship allowance shall be implemented in accordance with Article 2 of Decision No. 471/QD-TTg, which is a one-time allowance and not used to calculate contributions or benefits under social insurance, health insurance, unemployment insurance, and trade union fees.

The payment of hardship allowances for the subjects shall be carried out twice in the second quarter of 2011 as follows:

- First time: Implemented in April 2011, the allowance amount is VND 150,000/person for the subjects specified in Clause 1, 2, and 3 of Article 1 of Decision No. 471/QD-TTg; VND 50,000/person for the subjects specified in Clause 4 of Article 1 of Decision No. 471/QD-TTg; VND 150,000/household for the subjects specified in Clause 5 of Article 1 of Decision No. 471/QD-TTg.

- Second time: Implemented in May 2011, the allowance amount is VND 100,000/person for the subjects specified in Clause 1, 2, and 3 of Article 1 of Decision No. 471/QD-TTg; VND 50,000/person for the subjects specified in Clause 4 of Article 1 of Decision No. 471/QD-TTg; VND 100,000/household for the subjects specified in Clause 5 of Article 1 of Decision No. 471/QD-TTg.

3. Based on the provisions of Decision No. 471/QD-TTg, ministries, ministerial-level agencies, government agencies, and other central-level agencies (hereinafter referred to as ministries and central-level agencies) and centrally-administered cities and provinces shall be responsible for organizing timely support, ensuring correct eligibility, and compiling the financial requirements for implementing hardship allowances of their agencies, units, and subordinate levels in accordance with this Circular and submit them to the Ministry of Finance.

4. The settlement and finalization of financial expenditures for implementing hardship allowances shall be carried out in accordance with the prescribed regulations and the provisions of this Circular.

Article 2. On Determining Financial Requirements for Implementing Hardship Allowances:

The financial requirements for implementing hardship allowances shall be determined based on the number of subjects specified in Article 1 of Decision No. 471/QD-TTg and the specific guidelines of the Ministry of Labor, Invalids and Social Affairs present as of March 30, 2011, and the allowance amounts stipulated in Article 2 of Decision No. 471/QD-TTg.

Article 3. On the sources of funds to ensure the financial needs for implementing hardship allowances:

1. The central budget shall ensure the financial needs for implementing hardship allowances for the following groups:

- Groups specified in points a, b, c, and g of Clause 1, Article 1 of Decision No. 471/QĐ-TTg under central ministries and agencies.

- Groups specified in points h, i, and k of Clause 1, Article 1 of Decision No. 471/QĐ-TTg.

- Groups specified in Clause 2 (excluding those specified in point d of Clause 2), Clause 3, and Clause 4 of Article 1 of Decision No. 471/QĐ-TTg, and according to specific guidance from the Ministry of Labor, Invalids and Social Affairs.

2. Local budgets shall be responsible for ensuring the financial needs for implementing hardship allowances for the following groups:

- Groups specified in points a, b, c, and g of Clause 1, Article 1 of Decision No. 471/QĐ-TTg under local agencies and units.

- Groups specified in points d, đ, and e of Clause 1, Article 1 of Decision No. 471/QĐ-TTg.

- Groups specified in point d of Clause 2, Article 1 of Decision No. 471/QĐ-TTg.

- Poor households as defined in Clause 5, Article 1 of Decision No. 471/QĐ-TTg.

For localities with difficult budgets, the central budget shall support the local budget to implement hardship allowances for the aforementioned groups according to the following principles:

- For localities receiving supplementary balance from the central budget and Quang Ngai Province, 100% of the financial needs for implementing hardship allowances shall be supported.

- For localities with budget redistribution from the central budget below 50%, 50% of the financial needs for implementation shall be supported.

- For localities with budget redistribution from the central budget at 50% or more, the local budget shall self-fund the financial needs.

3. The financial needs for implementing hardship allowances for personnel and workers in the system of trade unions at all levels shall be paid from the source of 2% of trade union funds.

4. The financial needs for implementing hardship allowances for personnel and workers in the social insurance and unemployment insurance systems shall be guaranteed from the management expenses of the Vietnam Social Security as stipulated.

5. The financial needs for implementing hardship allowances for workers in agencies and units that have implemented cost allocation according to the decision of the competent authority and within which the unit has arranged within the allocated amount to ensure new policies (such as tax agencies, customs, Vietnam Television, etc.), these agencies and units must self-fund the allowance costs within the total allocated budget.

6. The financial needs for implementing hardship allowances for groups as prescribed by units that self-fund their regular operations shall be guaranteed from the unit's financial resources. In cases of difficulties in funding, the unit shall report to the superior agency for consolidation and submission to the finance department at the same level for consideration and resolution.

Article 4. Reporting System:

Based on the provisions of Decision No. 471/QĐ-TTg, central ministries, agencies, and provinces/cities directly under the central government shall organize, guide, and aggregate the financial needs for implementing hardship allowances of agencies, units, and subordinate levels to submit to the Ministry of Finance before April 30, 2011, specifically as follows:

1. Central ministries and agencies shall be responsible for aggregating reports on the number of beneficiaries and the financial needs for implementing hardship allowances for beneficiaries managed by the ministry or agency.

2. The Vietnam Social Security shall be responsible for aggregating reports on the number of beneficiaries and the financial needs for implementing hardship allowances for groups specified in Clause 2 (excluding those specified in points d and đ of Clause 2) of Article 1 of Decision No. 471/QĐ-TTg; Clause 4 of Article 1 of Decision No. 471/QĐ-TTg, and specific guidance from the Ministry of Labor, Invalids and Social Affairs.

3. The Ministry of Labor, Invalids and Social Affairs shall be responsible for aggregating reports on the number of beneficiaries and the financial needs for implementing hardship allowances for groups specified in point đ of Clause 2, Article 1 of Decision No. 471/QĐ-TTg; Clause 3 of Article 1 of Decision No. 471/QĐ-TTg; Clause 4 of Article 1 of Decision No. 471/QĐ-TTg, and specific guidance from the Ministry of Labor, Invalids and Social Affairs.

4. Provinces/cities directly under the central government shall be responsible for aggregating reports on the number of beneficiaries and the financial needs for implementing hardship allowances for beneficiaries managed by the locality.

(Central ministries and agencies shall report using forms 1, 2, and 3, while localities shall report using form 4 attached to this Circular).

Article 5. Methods for implementing hardship allowances:

1. Supplementing funds, allocating and disbursing hardship allowances to eligible recipients:

- Based on reports from central ministries and agencies and centrally-administered cities and provinces, the Ministry of Finance will review and announce the additional amount of funds needed from the state budget once to ensure that central ministries and agencies and centrally-administered cities and provinces have sufficient resources to implement hardship allowances according to Decision No. 471/QĐ-TTg.

- Central ministries and agencies will announce the additional funds to their subordinate budget-using units; local financial authorities at all levels will report to the People's Committees at the same level to announce the additional funds for their own budgetary units and lower-level budgets to implement hardship allowances as prescribed.

- Based on the announced additional amount from higher-level budgets as mentioned above, local financial authorities at all levels (at commune level, the People's Committee of the commune) will withdraw the budget at the State Treasury to implement hardship allowances according to Circular No. 202/2010/TT-BTC dated December 14, 2010 of the Ministry of Finance on organizing the implementation of the state budget for 2011 and Circular No. 107/2008/TT-BTC dated November 18, 2008 of the Ministry of Finance guiding the supplementation of certain points on managing and operating the state budget.

- Level I budgetary units are responsible for allocating the announced additional amount to their subordinate budget-using units. Budget-using units will withdraw money from the State Treasury within the supplementary amount to pay hardship allowances to eligible recipients as prescribed.

While waiting for authorized bodies to supplement funds, central ministries and agencies and centrally-administered cities and provinces shall proactively use the 2011 budget allocation to promptly pay hardship allowances to eligible recipients as prescribed. In cases of funding difficulties, they shall submit a document to the Ministry of Finance requesting advance funding to ensure payment sources. The advanced funds and those already used will be reimbursed from the supplementary funds provided by the authorized body.

2. Accounting and settlement: accounting and settlement of funds for implementing hardship allowances for cadres, civil servants, public officials, armed forces personnel, pensioners with low pensions, beneficiaries of preferential policies for persons who have rendered meritorious service, and poor households with difficult living conditions shall be carried out in accordance with the provisions of the State Budget Law and current legal documents.

Funds for paying hardship allowances under Decision No. 471/QĐ-TTg shall be recorded under Item 6400, Sub-item 6449.

Article 6. Implementation:

1. Based on the provisions of this Circular, central ministries and agencies and provincial People's Committees of centrally-administered cities and provinces are responsible for organizing and guiding agencies and units and subordinate levels to determine the number of eligible recipients and fund requirements, and to implement the payment of hardship allowances according to Decision No. 471/QĐ-TTg.

Based on the specific situation of their agencies and localities and the provisions of this Circular, heads of central ministries and agencies, provincial People's Committees of centrally-administered cities and provinces shall stipulate the time frame and reporting forms for units and subordinate budget levels consistent with the regulations on consolidation and reporting to the Ministry of Finance as specified in this Circular.

2. This Circular takes effect from May 20, 2011.

The implementation of hardship allowances is carried out in accordance with Clause 2, Article 1 of this Circular.

During the implementation process, if there are any difficulties, agencies and units are requested to report to the Ministry of Finance for timely resolution./.