Circular No. 55/2017/TT-BTC detailing the management and use of state budget for certain activities in the field of security and public order and social safety.

MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 55/2017/TT-BTC	Hanoi, May 19, 2017

CIRCULAR

DETAIL REGULATIONS ON MANAGEMENT AND USE OF THE STATE BUDGET FOR CERTAIN ACTIVITIES IN THE FIELD OF NATIONAL SECURITY AND SOCIAL ORDER AND SAFETY

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 165/2016/NĐ-CP dated December 24, 2016 of the Government on management and use of state budget for certain activities in the defense and security sectors;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

In accordance with the proposal of the Director of the Department of Defense and Security Finance, particularly;

The Minister of Finance issues this Circular detailing the management and use of the state budget for certain activities in the field of national security and social order and safety.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular details the procedures for preparing, allocating budgets, organizing revenue and expenditure from the state budget, accounting, and finalizing the state budget in the field of national security and social order and safety under the responsibility of the Ministry of Public Security.

2. Matters not specified in this Circular shall be implemented in accordance with the State Budget Law and guiding documents therefor.

Article 2. Applicability

This Circular applies to the Ministry of Public Security, agencies, units, organizations, and individuals related to the use of the state budget in the field of national security and social order and safety under the responsibility of the Ministry of Public Security.

Article 3. Principles of Management, Use, and Accounting of Revenue and Expenditure from the State Budget in the Field of National Security and Social Order and Safety

1. All revenues and expenditures from the state budget in the field of national security and social order and safety shall be accounted for in Vietnamese Dong, within the fiscal year, budget level, and state budget classification. Revenues and expenditures from the state budget in foreign currency shall be converted into Vietnamese Dong at the accounting exchange rate prescribed by the Ministry of Finance for accounting purposes at the time of occurrence.

2. All expenditures from the state budget in the field of national security and social order and safety must be subject to inspection and control during payment and settlement. Expenditures must be included in the allocated state budget, in accordance with regulations and standards set by the competent authority and approved by the head of the budget-using unit or the person authorized to decide. chuẩn, the expenditure quota as prescribed by the competent authority and approved by the head of the budget-using unit or the authorized representative.

The person making the expenditure decision shall be responsible for their decision. If expenditures are incorrect, they must compensate and repay the state budget, and may also face disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation.

Article 4. Revenues and Expenditures from the State Budget in the Field of National Security and Social Order and Safety

1. Revenues from the state budget in the field of national security and social order and safety under the responsibility of the Ministry of Public Security as stipulated in Clause 1, Article 4 of Decree No. 165/2016/NĐ-CP.

Agencies and units assigned the task of collecting revenues shall organize collection and remittance to the state budget fully and timely in accordance with the provisions of the law for each type of revenue and the guidance provided in this Circular.

2. Expenditures from the state budget in the field of national security and social order and safety under the responsibility of the Ministry of Public Security as stipulated in Article 8 of Decree No. 165/2016/NĐ-CP and the provisions of the law on fees and charges.

Expenditures allocated in the state budget of the Ministry of Public Security must comply with current regulations, standards, and expenditure limits, and ensure the specific nature required to serve the tasks of national security and social order and safety.

Chapter II

PREPARATION, ALLOCATION, AND ASSIGNMENT OF THE STATE BUDGET ESTIMATE

Article 5. Preparation of the State Budget Estimate

Based on the Prime Minister's regulations on developing economic and social development plans and the next year's state budget estimate, the guidance of the Ministry of Finance on requirements, contents, deadlines for preparing the budget estimate, and notifications of the examination figures for the budget estimate, and the requirements and tasks to ensure national security and maintain social order and safety to be carried out in the planning year, the Ministry of Public Security guides subordinate units to implement the preparation of the state budget estimate according to the following contents:

1. Guidance and notification of the examination figures for the budget estimate to units based on the principle:

a) Higher-level units provide guidance and notify the examination figures for the budget estimate to directly subordinate units.

b) The content of the notification of the examination figures for the budget estimate to budget estimate units must be consistent with the examination figures for the budget estimate notified by the Ministry of Finance. Specifically: Revenue figures must not be lower than the examination figures; expenditure figures must be consistent with the examination figures regarding the total amount and the content of expenditures in each field.

2. Procedure for preparing and submitting the budget estimate:

Based on the guidance of the Ministry of Public Security, units prepare the budget estimate according to the following procedure:

a) Units using the budget prepare their own budget estimates and submit them to the directly superior management agency for review, consolidation, and submission of the budget estimate within their management scope to the directly superior agency.

b) Level 2 budget estimate units review the budget estimates of subordinate budget estimate units, consolidate, and prepare the revenue and expenditure budget estimates within their management scope and submit them to the level 1 budget estimate unit.

c) Level 1 budget estimate units review the budget estimates of level 2 budget estimate units (or budget estimate units directly related to level 1 budget estimate units), consolidate, and prepare the revenue and expenditure budget estimate of the Ministry of Public Security.

d) The revenue and expenditure budget estimate of the Ministry of Public Security is submitted to the Ministry of Finance, the Ministry of Planning and Investment, and relevant ministries managing sectors and fields, along with detailed allocation plans for the next year's budget by sector and down to level 2 budget estimate units (or budget estimate units directly related to level 1 budget estimate units) as prescribed by the State Budget Law.

3. Requirements for preparing the budget estimate:

a) The revenue budget estimate of the Ministry of Public Security must not be lower than the examination figures, with explanations of the basis for calculating each revenue item, assessment of the implementation of revenue and remittance of the state budget in the previous year, mechanisms and policies, and economic and social conditions affecting revenue.

b) The expenditure budget estimate of the Ministry of Public Security must fully explain the basis for calculation, preparation, and assessment of the implementation of the previous year's budget tasks; regulations, policies, standards, and expenditure limits; personnel strength and staffing; tasks to ensure national security and maintain social order and safety, and the examination figures for state budget expenditures notified by the Ministry of Finance.

c) For the budget estimate of public security and local fire prevention and firefighting, clear distinctions must be made:

The portion guaranteed by the central budget shall be consolidated and submitted to the superior level according to the分级管理 of the Ministry of Public Security.

The portion guaranteed by the local budget in accordance with Clause 2, Article 11 and Clause 2, Article 12 of Decree No. 165/2016/ND-CP shall be sent to the local financial authority at the same level for submission to the People's Council of the locality for decision, and simultaneously forwarded to the superior levels according to each level for consolidation.

Article 6. Allocation and Transfer of State Budget Estimates

1. After being assigned the state budget estimates by the Prime Minister and the Ministry of Finance, the Ministry of Public Security shall implement the allocation and transfer of budget expenditure estimates to the second-level budget units (or budget units directly related to first-level budget units), while authorizing the second-level units to allocate and transfer estimates to subordinate budget-using units.

The allocation and transfer of estimates to budget-using units must be carried out strictly in accordance with Clause 1, Article 19 of Decree No. 165/2016/ND-CP and must include:

a) Allocating all assigned budget estimates in detail by each field and revenue and expenditure tasks of the state budget.

b) Clearly defining the form of implementing budget expenditure tasks through withdrawing estimates from the State Treasury or payment orders.

Expenditure tasks shall be implemented in the form of withdrawing estimates and payment orders as stipulated in Article 11 of this Circular.

c) The state budget estimates allocated to budget-using units must include funds for centralized procurement and provision of equipment in kind.

2. The results of the allocation and transfer of state budget estimates to subordinate units must be submitted to the Ministry of Finance, the State Treasury, and the State Treasury where transactions take place (through the budget-using unit submitting detailed state budget estimates of the unit).

The Ministry of Finance shall conduct checks on the allocation and transfer of estimates by the Ministry of Public Security. In case of discovering that the allocation does not comply with the total amount and details by each field and task of the assigned state budget estimates; does not comply with policies and regulations, the Ministry of Finance shall request the Ministry of Public Security to adjust within the latest 10 working days from the date of receipt of the report.

Based on the state budget estimates assigned by the competent authority and the results of the allocation of state budget estimates, the State Treasury shall record accounting entries, and shall not enter the state budget expenditure estimates of subordinate units of the Ministry of Public Security into the budget and treasury management information system (TABMIS).

3. For local public security agencies and fire prevention and firefighting police: After receiving the decision on the allocation of estimates from the People's Committee of the locality, local public security agencies and fire prevention and firefighting police shall report upwards level by level until reaching the Ministry of Public Security for consolidation.

4. The allocation and transfer of estimates to budget-using units must be completed before December 31 of the previous year.

Article 7. Preparation, Allocation, and Transfer of Supplementary State Budget Estimates for Important and Urgent Tasks

1. In cases where important tasks arise concerning national security and social order and safety, and other urgent tasks not included in the initial state budget estimates assigned at the beginning of the year require supplementary state budget estimates, the preparation of supplementary estimates shall be carried out as follows:

a) Based on new requirements and tasks arising and the expenditure task delegation provisions stipulated in Article 8 of Decree No. 165/2016/ND-CP, units under the Ministry of Public Security shall prepare supplementary estimates based on current systems, policies, standards, and norms, and submit them to the superior management authorities for consolidation and submission to the Ministry of Public Security.

b) The Ministry of Public Security shall review the supplementary estimate proposals of the units, self-balance, arrange, and adjust within the scope of the initial year's allocated budget to fulfill the tasks. If it is impossible to balance the funding sources to implement the tasks, they shall consolidate and submit to the Ministry of Finance and the Ministry of Planning and Investment for consideration and submission to the competent authority for decision in accordance with the State Budget Law and guiding documents.

2. Based on the decision on supplementary state budget estimates of the competent authority, the Ministry of Public Security shall implement the allocation and transfer of estimates to budget-using units in accordance with Article 6 of this Circular.

Chapter III

ORGANIZATION OF STATE BUDGET COLLECTION AND EXPENDITURE

Article 8. Organization of State budget revenue collection

1. Agencies and units assigned the task of collecting state budget revenues must organize the collection according to the provisions of the law for each type of revenue and the guidance of the Ministry of Finance on state budget revenue and expenditure work. Specifically:

a) Collection of fees and charges: Implement the submission of state budget revenues in accordance with the Law on Fees and Charges, the State Budget Law, and guiding documents.

b) Collection from the liquidation of state assets, from the sale of property attached to land, and from the transfer of land use rights: Implement the submission of state budget revenues in accordance with the Law on Management and Use of State Assets, the Land Law, the State Budget Law, and guiding documents.

c) Collection from administrative penalties: Submit all collected funds into the state budget in accordance with the Law on Administrative Violation Handling, the State Budget Law, and guiding documents.

2. Responsibilities of the Ministry of Public Security and other agencies and units:

a) Collection agencies cooperate with financial agencies at the same level and the State Treasury where transactions take place to ensure accurate, complete, and timely collection of revenues to be submitted to the state budget as stipulated by law.

b) Heads of agencies and units are responsible for urging and inspecting agencies, units, and individuals directly involved in collection to submit all revenues required to be submitted to the state budget fully and on time.

c) Higher-level management agencies and the Ministry of Public Security are responsible for inspecting and supervising revenues included in the annual budget estimate and other revenues as prescribed by law. They must compile and report state budget revenues according to established regulations.

d) Implement regular and ad hoc reporting systems as required by competent state agencies and as stipulated in Article 17 of this Circular.

Article 9. Conditions for State budget expenditures

1. Included in the allocated budget estimate. In cases where the budget estimate and budget allocation have not been decided by the competent authority, the Minister of Finance may decide to temporarily allocate funds for non-postponable tasks.

2. Comply with the standards, norms, and criteria issued by competent state authorities applicable to national security and social order and safety fields.

3. Approved by the head of the budget-using unit or the authorized person through written documentation or approval on payment vouchers and settlement documents.

4. In addition to the above conditions, when using state budget capital and funds for basic construction investment, production investment, procurement of equipment and working tools, and other tasks, bidding procedures must be organized in accordance with the Bidding Law.

Article 10. Principles of Payment for State Budget Expenditures

1. The Ministry of Finance and the State Treasury are responsible for inspecting, supervising, and making full and timely payments according to the progress of tasks allocated in the budget estimate; they have the right to refuse payments that do not meet the conditions set out in Article 9 of this Circular and bear responsibility for their decisions in accordance with the law.

2. Payments from the state budget are made directly from the Ministry of Finance and the State Treasury to salary recipients, allowance recipients, subsidy recipients, suppliers of goods and services, or budget-using units for expenditures requiring high confidentiality. In urgent cases, some expenditures that do not yet meet the conditions for direct payment from the Ministry of Finance and the State Treasury can be temporarily advanced by budget-using units based on their allocated estimates, followed by settlement with the Ministry of Finance and the State Treasury in accordance with the regulations of the Ministry of Finance.

3. Regular expenditures are arranged evenly throughout the year; investment construction tasks, large-scale procurement and repair, and other non-regular expenditures are guaranteed sources of payment according to the progress and within the scope of the budget estimate allocated to the Ministry of Public Security.

Article 11. Forms of Implementing State Budget Expenditure

1. State budget expenditure shall be implemented through the withdrawal of budget estimates for the following tasks:

a) Regular expenditure on security and public order, except for expenditures carried out under the cash payment order form as stipulated in Clause 2 of this Article;

b) Activities of public services as specified in Clause 3, Article 8 of Decree No. 165/2016/NĐ-CP, except for contents of expenditure provided in the form of cash payment orders according to the decision of the competent authority.

2. State budget expenditure shall be implemented through the issuance of cash payment orders for regular expenditure on security and public order, including:

a) Secret fees, territorial fees, special funds for intelligence forces, and funds for the Ministry of Public Security's representative offices abroad;

b) Purchase of assets, equipment, and means using foreign currency; investment construction expenditure with high confidentiality requirements;

c) Recording of state budget revenue and expenditure for certain specific revenue and expenditure items as prescribed by the Ministry of Finance;

d) Urgent tasks and other unexpected expenditures as decided by the Minister of Finance.

3. National reserve expenditure shall be implemented in accordance with the laws on national reserves.

4. Development investment expenditure, national target programs, and target programs (investment capital) shall be implemented in accordance with the regulations on management and settlement of investment capital from the state budget issued by the Ministry of Finance.

Article 12. State Budget Expenditure in the Form of Withdrawal of Budget Estimates

1. Based on the decision to allocate the budget estimate and the demand for expenditure tasks, the head of the budget unit shall prepare a withdrawal of budget estimate form, accompanied by the payment documentation (except for expenditures with high confidentiality requirements), and send it to the State Treasury at the transaction location for control and payment purposes.

2. The State Treasury at the transaction location shall check the budget balance, the legality of the documents submitted by the unit, and the conditions for expenditure as stipulated in Article 9 of this Circular, and implement the withdrawal of funds and accounting of expenditure or advance budget payments according to the payment settlement principles set forth in Article 10 of this Circular.

In cases where direct payment through the State Treasury is not yet possible for all expenditures, the State Treasury may provide advances for some expenditures as prescribed. After completing the work and having sufficient payment documents, the State Treasury shall conduct control, payment, and accounting as prescribed.

3. For expenditures with high confidentiality requirements, the State Treasury will not review the payment documents but will make payments and settle accounts according to the request of the head of the budget-using unit. The Ministry of Public Security and the budget-using units are responsible for the content of the expenditure, the legality, and the validity of the state budget expenditure documents.

High confidentiality requirements include: salaries; salary allowances; scholarships for students and pupils; contributions; personal payments; professional business expenses; purchase of specialized assets; construction and equipment costs.

4. When implementing state budget expenditure in the form of withdrawal of budget estimates, the budget-using units and the State Treasury must account according to the current state budget classification.

Article 13. State Budget Expenditure in the Form of Cash Payment Orders

1. Based on the allocated budget estimate and the need for state budget expenditure, the Ministry of Public Security shall issue a letter requesting funding and submit relevant documents as prescribed to the Ministry of Finance.

2. The Ministry of Finance shall examine and verify the expenditure request documents; when ensuring all conditions for expenditure and the legality of the documents as prescribed, it shall issue a cash payment order for the budget-using unit, service provider, contractor, or organization/person as requested by the Ministry of Public Security and send it to the State Treasury.

The Ministry of Public Security and the budget-using units are responsible for the content of the expenditure, the legality, and the validity of the state budget expenditure documents.

3. Based on the cash payment order from the Ministry of Finance, the State Treasury shall withdraw state budget funds and transfer funds into the bank account of the budget-using unit, service provider, contractor, or organization/person entitled to receive the budget according to the prescribed regulations and the content of the cash payment order. If the cash payment order is invalid or illegal, the State Treasury must notify the Ministry of Finance within one working day from the date of receipt of the cash payment order for handling.

Article 14. Provisional budget allocation and advance appropriation of the next year's budget estimate

1. In cases where at the beginning of the fiscal year, the budget estimate and the distribution plan have not yet been decided by the competent state agency, the Ministry of Finance and the State Treasury shall temporarily allocate funds according to the provisions of Clause 1, Article 51 of the State Budget Law.

To ensure regular operations for the people's police force in the first days of the new year, upon the request of the head of the budget-using unit, the State Treasury shall implement provisional payment of salaries, allowances with salary-like characteristics, professional expenses, and other necessary expenditures in December of the previous year. The maximum advance payment amount shall be equal to the average of one month of the previous year for the items that are provisionally allocated.

2. Advance appropriation of regular expenditure estimates shall be implemented for important, necessary, and urgent tasks within the expenditure responsibilities of the next year's budget and approved by the competent authority.

The principles, criteria, and conditions for advance appropriation of the next year's budget estimate shall be carried out in accordance with the provisions of Article 37 of Decree No. 163/2016/NĐ-CP.

Article 15. Opening Accounts

1. Units under the Ministry of Public Security may open budget accounts and unit budget deposit accounts (domestic and foreign currencies) at the State Treasury in accordance with the regulations of the Ministry of Finance to receive state budget funds assigned to fulfill their assigned tasks.

2. The State Treasury shall guide units under the Ministry of Public Security to open accounts in accordance with the prescribed regulations.

Chapter IV

ACCOUNTING, SETTLEMENT AND REPORTING OF THE STATE BUDGET

Article 16. Accounting and Settlement of the State Budget

1. Accounting and settlement of the state budget must be carried out in accordance with the provisions of the State Budget Law, the guidelines of the Ministry of Finance on annual closing of accounting books and settlement of the state budget; at the same time, budget units must perform:

a) Regarding state budget revenue tasks: Review amounts due to the state budget but not yet paid or insufficiently paid into the state budget (especially revenues assigned in the initial state budget estimate) to coordinate with financial agencies, revenue management agencies, and the State Treasury at the same level to take measures for handling according to the prescribed regulations.

b) Regarding state budget expenditure tasks: Review the entire budget estimate assigned by the competent authority (including supplementary budgets); check and examine temporary advances and cash balances to proactively spend and settle temporary advances during the year.

Compare with the State Treasury regarding budget estimate figures, temporary advances, surplus budget estimates, and account balances of the unit to ensure accuracy in total and detail according to the state budget schedule before preparing and reporting the annual settlement of the state budget.

c) Handle the end-of-year state budget and account balances of budget units under the Ministry of Public Security in accordance with the guidance documents of the Ministry of Finance.

2. Approval and review of the annual settlement of the state budget of budget units under the Ministry of Public Security shall be carried out in accordance with the provisions of the State Budget Law, the guidelines of the Ministry of Finance on state budget settlement work, and shall be conducted based on the following principles:

a) The head of the higher-level budget unit is responsible for reviewing the report on the settlement of the state budget (including all state budget revenues and expenditures, including retained funds for expenditures according to the prescribed regulations) and informing the lower-level budget unit of the review results of the state budget settlement; compiling and submitting the report on the settlement of the state budget within their jurisdiction to the superior management agency for examination and approval.

b) The first-level budget unit is responsible for approving the reports on the settlement of the state budget of subordinate units; compiling and submitting the annual report on the settlement of the state budget of the Ministry of Public Security to the Ministry of Finance for review in accordance with the regulations.

c) Reports on the settlement of the state budget submitted to the superior management agency and the Ministry of Finance must fully explain the implementation of the budget revenue and expenditure estimates, clearly explain the reasons for failing to meet the budget revenue and expenditure targets (if any), temporary advances, account balances; report on the implementation and handling of the recommendations of the National Audit Office.

Article 17. Reporting System

1. Monthly, units responsible for collecting state budget revenues shall report to the superior management agency and the first-level budget unit on the situation of collection and payment of state budget revenues.

2. Quarterly, the Ministry of Public Security shall report to the Ministry of Finance on the situation of state budget revenues and expenditures; report to relevant agencies on the implementation of state budget revenues and expenditures in accordance with the law.

3. Form Monthly and quarterly reports shall be carried out in accordance with the regulations of the Ministry of Finance.

Chapter V

IMPLEMENTATION

Article 18. Responsibilities for managing and using the state budget

1. The Ministry of Public Security shall be responsible for guiding, directing, inspecting, and auditing subordinate budgetary units to ensure that their revenue and expenditure budgets are implemented for the intended purposes, efficiently, and economically, in accordance with the state regulations.

2. The head of a unit using the state budget shall be responsible for managing and using the state budget according to the assigned budget, evaluating the results of tasks performed, ensuring efficiency and economy, complying with regulations, policies, standards, and budgetary norms.

The head of a unit using the state budget shall be responsible for the decision to spend and the accuracy of the spending content on the voucher sent to the State Treasury. At the same time, they shall be accountable under the law and competent authorities for applying tender selection methods and deciding on tender selections in accordance with the Bidding Law and related guidance documents.

3. The person in charge of financial and accounting work at a unit using the state budget shall be responsible for implementing financial and budget management systems, accounting systems, preventing, detecting, and recommending the head of the unit to handle violations.

4. Agencies, units, organizations, and individuals involved in using the state budget in the fields of security and public order must manage and use funds and capital for the intended purposes, economically, efficiently, and complete settlement in accordance with prescribed regulations.

5. Annually, the Ministry of Public Security shall cooperate with the Ministry of Finance to inspect the implementation of revenue and expenditure budgets of subordinate units of the Ministry of Public Security.

Article 19. Effective Date

1. This Circular takes effect from July 6, 2017, applicable from the 2017 fiscal year.

Circular Jointly Issued No. 54/2004/TTLT-BTC-BCA dated June 10, 2004, of the Ministry of Finance and the Ministry of Public Security guiding the preparation, execution, and settlement of the state budget and management of state assets for certain activities in the field of security shall cease to be effective from the date this Circular takes effect.

2. For the settlement of the state budget for the year 2016, the provisions of the State Budget Law dated December 16, 2002; Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law; Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government on the management and use of the state budget and state assets for certain activities in the fields of national defense and security; and Circular Jointly Issued No. 54/2004/TTLT-BTC-BCA dated June 10, 2004 of the Ministry of Finance and the Ministry of Public Security guiding the preparation, execution, and settlement of the state budget and management of state assets for certain activities in the field of security shall apply.

3. Ministries, ministerial-level agencies, government agencies, other central agencies, provinces, centrally governed cities, and related organizations and individuals shall be responsible for implementing this Circular.

In the course of implementation, if there are difficulties or obstacles, they are requested to report promptly to the Ministry of Finance for research and supplementary guidance.

Place of Receipt: - Prime Minister, Deputy Prime Ministers; - Central Party Office; - General Secretary's Office; - National Assembly's Office; - President's Office; - Ministries, ministerial-level agencies; - Government agency; - Supreme People's Court; - Supreme People's Procuracy; - State Audit Agency; - Official Gazette; - People's Committees, Provincial Departments of Finance, State Treasuries of centrally governed cities and provinces; - Ministry of Justice's Legal Documents Inspection Department; - Units under the Ministry of Finance; - Government Portal, Ministry of Finance Portal; - To be filed: VT, VI (300b).

DEPUTY MINISTER DEPUTY MINISTER Huynh Quang Hai