Circular No. 52/1999/TT-BTC guides the temporary advance of state treasury funds to the state budget.

CIRCULAR

Guidelines for the temporary advance of funds from the State Treasury to the State Budget

Pursuant to the Prime Minister's Decision No. 853/1997/CT-TTg dated October 11, 1997 on combating smuggling under new circumstances;

Based on Decree No. 25/CP dated April 5, 1995 of the Government regarding the tasks, powers, and organizational structure of the State Treasury system under the Ministry of Finance;

To ensure the requirements for managing the State Budget;
The Ministry of Finance guides the implementation of the temporary advance of idle funds from the State Treasury to the State Budget as follows:

I. GENERAL PROVISIONS:

1. The State Treasury temporarily advances idle funds to the State Budget through the Ministry of Finance (for the central budget), People's Committees of provinces and centrally-administered cities (for provincial and centrally-administered city budgets) to meet expenditure needs when revenue has not yet been collected in time.

2. The temporary advance of funds from the State Treasury to the State Budget must be decided by the competent authority: For the central budget, it is decided by the Minister of Finance. For provincial and centrally-administered city budgets, it is decided by the General Director of the State Treasury based on the approved temporary advance limits for localities by the Minister of Finance. The temporary advance of funds from the State Treasury must ensure that it does not affect the payment and disbursement tasks of the State Treasury. The State Treasury has the right to refuse to implement the temporary advance if there is insufficient cash reserve to meet payment and disbursement needs.

3. The budget level receiving the temporary advance is responsible for using the temporarily advanced funds from the State Treasury for the approved purpose, fully repaying the advance on time, and paying a fee to the State Treasury on the amount temporarily advanced according to the regulations of the Minister of Finance. The budget level that temporarily advances funds is responsible for repaying the temporary advance to the State Treasury; the central budget is not responsible for repaying the temporary advances made by the State Treasury to the local budget.

4. The temporary advance of idle funds from the State Treasury to the State Budget can only be implemented at the Central State Treasury and the State Treasury of provinces and centrally-administered cities. District, county, town, and area State Treasuries are not permitted to temporarily advance funds to any entity.

II. SPECIFIC PROVISIONS

1. Purpose of Temporary Advance of Funds:

The State Treasury temporarily advances funds to the central budget and local budgets to address the following needs:

- Regular expenditures of the State Budget recorded in the approved budget estimate;

- Unexpected expenditures such as disaster relief, storm and flood recovery, and budget revenue shortfalls approved by the competent authority;

- Investment projects and construction works recorded in the State Budget but requiring accelerated progress to achieve economic benefits.

2. Temporary Advance Limits:

- The temporary advance limit is the maximum outstanding balance that the State Treasury can lend to the State Budget in a fiscal year.

- Annually, based on the budget estimates for revenue and expenditure of the State Budget, the Central State Treasury submits to the Minister of Finance for approval the temporary advance limits for the central budget and the provincial and centrally-administered city budgets.

- On the basis of the approved temporary advance limits for the State Treasury by the Minister of Finance, the General Director of the State Treasury implements the temporary advance of funds from the State Treasury to the provincial and centrally-administered city budgets when there is a need for a temporary advance.

- In cases where the temporary advance exceeds the limit, it must be decided by the Minister of Finance.

3. Procedures for Temporary Advances:

3. 1. Temporary Advance for the Central Budget: When there is a need for a temporary advance, the Department of State Budget prepares a request for a temporary advance (with the opinion of the Central State Treasury) and submits it to the Minister of Finance for consideration and decision. Based on the Minister's decision, the State Treasury cooperates with the Department of State Budget to implement it.

3. 2. Temporary Advance for Local Budgets: When there is a need for a temporary advance, the People's Committee of the province or centrally-administered city issues a letter and prepares a request for a temporary advance (according to the attached form) and sends it to the Central State Treasury for approval. The People's Committee of the province is responsible for managing and using the temporarily advanced funds in accordance with current regulations and commits to repaying the State Treasury both principal and fees on time. In cases where the requested temporary advance of provinces and centrally-administered cities exceeds the approved temporary advance limit, the Central State Treasury reports to the Minister of Finance for consideration and decision.

4.1. Duration of Temporary Advance:

4. 1. Temporary Advance Period:

- For advances to the central budget, they are decided by the Minister of Finance.

- For advances to local budgets, they are decided by the General Director of the State Treasury, with a maximum period of up to 12 months for each temporary advance.

- For advances exceeding 12 months, they are approved by the Minister of Finance.

- The central budget and local budgets must repay the temporary advance to the State Treasury according to the agreed repayment deadline in the request for a temporary advance, except in cases where an extension of the debt is granted by the General Director of the State Treasury or the Minister of Finance.

4. 2. Recovery of Temporary Advances:

Fifteen days before the repayment deadline, the State Treasury proactively informs the financial agency to arrange the budget reserve to repay the temporary advance. For overdue advances, the State Treasury has the right to automatically deduct from the budget reserve to recover the debt; simultaneously, it notifies the Department of Finance and Prices (for local budgets) and the Department of State Budget (for the central budget).

5. Temporary Advance Fee: Financial agencies pay a fee to the State Treasury based on the outstanding balance of the temporary advance, calculated based on the actual number of days of the temporary advance. The unified rate for the temporary advance fee for the State Budget is 0.2% per month (30 days) on the outstanding balance of the temporary advance. The temporary advance fee is accounted for and used according to the regulations of the Ministry of Finance.

6. Accounting and Reporting: Temporary advances, repayments of temporary advances, and advance fees are accounted for according to the current state budget accounting chart and in accordance with the regulations of the Ministry of Finance. - Regularly (monthly, quarterly, annually), the State Treasuries of provinces and centrally-administered cities report the situation of temporary advances and their recovery to the Central State Treasury.

III. IMPLEMENTATION

1. Units of the State Treasury, financial agencies need to closely coordinate in planning budget revenues and expenditures, urging timely collection, ensuring reasonable, prompt, and effective use of funds, full and timely repayment.

2. Units of the State Treasury must closely monitor the cash balance of the State Treasury in their respective areas. In case the cash balance of the State Treasury at the local level is insufficient for payment, they must immediately report to the Central State Treasury for prompt resolution.

3. This Circular replaces Circular No. 84TC/KBNN dated November 17, 1995 of the Ministry of Finance and shall take effect fifteen days from the date of signature. Previous regulations of the Ministry of Finance and the State Treasury regarding the advance funding for the state budget that conflict with this Circular are no longer in effect.