Circular No. 57/2010/TT-BTC stipulates the preparation of budgets, use, and settlement of funds for organizing compensation, support, and resettlement when the State recovers land.

CIRCULAR

Regulations on the preparation of budgets, use, and settlement of funds for organizing compensation, support, and resettlement when the State recovers land. These regulations apply to the preparation of budgets, use, and settlement of funds for organizing compensation, support, and resettlement when the State recovers land for national defense, security, national interests, public interest, and economic development purposes as prescribed by the Government's guidelines for implementing the Land Law, including cases where competent state agencies decide to separate the compensation, support, and resettlement components of projects under ministries and sectors into separate sub-projects.

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Based on the Land Law dated November 26, 2003;

Based on Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the State recovers land;

Based on Decree No. 69/2009/NĐ-CP dated August 13, 2009 of the Government providing additional provisions on land planning, land prices, land recovery, compensation, support, and resettlement;

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

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;

The Ministry of Finance shall stipulate the preparation of budgets, use, and settlement of funds for organizing compensation, support, and resettlement when the State recovers land as follows:

Article 1. Scope of Regulation

This Circular stipulates the preparation of budgets, use, and settlement of funds for organizing compensation, support, and resettlement when the State recovers land for national defense, security, national interests, public interest, and economic development purposes as prescribed by the Government's guidelines for implementing the Land Law, including cases where competent state agencies decide to separate the compensation, support, and resettlement components of projects under ministries and sectors into separate sub-projects.

Article 2. Applicability

1. The Compensation, Support, and Resettlement Council at the district level; Land Development Fund organizations entrusted with the task of compensation, support, and resettlement when the State recovers land (hereinafter referred to collectively as Organizations entrusted with the task of compensation, support, and resettlement).

Other entities related to the preparation, use, and settlement of funds for organizing compensation, support, and resettlement when the State recovers land.

Article 3. Sources and levels of funding to ensure the organization of compensation, support, and resettlement work

1. The source of funding to ensure the organization of compensation, support, and resettlement work shall be extracted not exceeding 2% of the total compensation and support funds of the project or sub-project; except in the case provided for in Clause 2 of this Article.

2. For projects or sub-projects implemented in areas with difficult socio-economic conditions or extremely difficult conditions, and projects or sub-projects constructing infrastructure works along routes, the Organizations entrusted with the task of compensation, support, and resettlement may prepare budgets based on actual workload and the extraction rate specified in Clause 3 of this Article, without being restricted to the 2% ratio of the total compensation and support funds of the project or sub-project.

3. Based on the actual situation in the locality, the Department of Finance shall submit to the People's Committee of the province or centrally-administered city (hereinafter referred to collectively as the Provincial People's Committee) specific extraction rates as stipulated in Clauses 1 and 2 of this Article, suitable to the scale, nature, and characteristics of each type of project or sub-project for uniform application in the locality.

4. In localities where a Compensation, Support, and Resettlement Plan Review Board or a Provincial Land Clearance Work Steering Committee has been established, based on the tasks of the Review Board or the Provincial Land Clearance Work Steering Committee, the Department of Finance shall submit to the Provincial People's Committee specific decisions on the allocation ratio of the organizational implementation funds for compensation, support, and resettlement of projects or sub-projects to be used for the activities of the Organizations entrusted with the task of compensation, support, and resettlement, the Review Board, and the Provincial Land Clearance Work Steering Committee, as appropriate.

5. In cases of hiring enterprises to provide services related to compensation and land clearance, the costs paid to the enterprise providing such services also fall within the organizational implementation costs for compensation, support, and resettlement of projects or sub-projects.

Article 4. Contents of expenses for organizing compensation, support, and resettlement

1. Expenses for propaganda and announcement of decisions on land recovery and policies and mechanisms for compensation, support, and resettlement when the State recovers land; organizing mobilization of related subjects to implement land recovery decisions; surveying and investigating economic and social conditions, current land status, assets within the scope of projects and sub-projects.

2. Expenses for inventorying and assessing actual losses of land and assets including: distributing declaration forms, guiding those suffering losses to declare their losses; determining land area, inventorying quantity and value of houses, constructions, crops, livestock, and other assets damaged when the State recovers land from each organization, household, and individual; checking and comparing declarations with inventory results, determining the extent of damage for each specific subject whose land is recovered; calculating the value of losses of land, houses, constructions, crops, livestock, and other assets, etc.

3. Expenses for establishing, approving, and publicly announcing compensation, support, and resettlement plans from the initial stage of calculating compensation indicators to the approval stage of compensation plans and public announcement of compensation plans.

4. Expenses for reviewing compensation, support, and resettlement plans.

5. Expenses for serving inspection, guidance on implementation of compensation policies, resolving difficulties in compensation work, and organizing payment of compensation.

6. Expenses for renting office space and working equipment of organizations assigned to carry out compensation, support, and resettlement and review agencies (if any).

In cases where specialized organizations assisting the Compensation, Support, and Resettlement Councils and the Review Councils of projects and sub-projects have long-term operations without working equipment or purchasing such equipment is more effective than renting, they may purchase working equipment to serve their tasks. The acquisition of assets shall be carried out in accordance with current laws.

7. Expenses for printing, photocopying documents, and office supplies.

8. Expenses for advance capital fees of the Land Development Fund or the State Treasury to organize compensation, support, and resettlement (if any).

9. Expenses for hiring labor to carry out compensation, support, and resettlement work (if any).

10. Expenses for organizing compensation, support, and resettlement work under the responsibility of the project leader for land clearance in cases where competent authorities decide to separate compensation, support, and resettlement contents of projects under ministries and sectors into separate sub-projects.

11. Service charges paid to enterprises in cases of hiring enterprises to perform services related to compensation and land clearance.

12. Other expenses directly related to organizing compensation, support, and resettlement.

Article 5. Levels of expenses for organizing compensation, support, and resettlement

1. For expenses that have standard rates, standards, or unit prices prescribed by the competent state authority, they shall be implemented according to current regulations.

2. For expenses that do not have standards, norms, or unit prices prescribed by competent state agencies, the People's Committee of the province shall base on the actual situation in the locality to prescribe accordingly, except for expenses stipulated in Clauses 3, 4, and 5 of this Article.

3. For offices and working equipment of organizations assigned to carry out compensation, support, and resettlement and review agencies: Organizations assigned to carry out compensation, support, and resettlement and the leading review agency shall be responsible for arranging and organizing within their existing working house fund and working equipment fund to serve the work.

In cases where it is not possible to arrange within the existing working house fund and working equipment fund, renting offices and working equipment is allowed. Renting offices and working equipment shall be implemented in accordance with Article 7 and Article 8 of Decree No. 52/2009/ND-CP dated June 3, 2009, of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Assets, and Articles 6 and 7 of Circular No. 245/2009/TT-BTC dated December 31, 2009, of the Ministry of Finance implementing certain contents of Decree No. 52/2009/ND-CP.

4. Printing, photocopying expenses, office supplies, fuel, logistical support services, and other expenses serving the administrative machinery shall be calculated based on the actual needs of each project and sub-project.

5. Service charges paid to enterprises in cases of hiring enterprises to perform services related to compensation and land clearance:

Hiring enterprises to perform services related to compensation and land clearance shall be carried out through contracts signed between the organization assigned to carry out compensation, support, and resettlement and the enterprise. The hired enterprise has the obligation to fulfill the contract signed and relevant laws; if the hired enterprise does not fulfill the contract signed, it will be handled according to the law. Service charges paid to the hired enterprise to perform services related to compensation and land clearance are regulated as follows:

a) The People's Committee of the province shall stipulate the maximum level of service charges payable for each type of service provided by the hired enterprise.

b) For projects and sub-projects with service charges paid to enterprises performing services related to compensation and land clearance calculated based on the level prescribed by the People's Committee of the province at point a of this clause below 500 million VND/project, sub-project, the organization assigned to carry out compensation, support, and resettlement shall negotiate with the enterprise performing services related to compensation and land clearance to submit to the competent authority for approval of the compensation, support, and resettlement plan to determine the level of service charges paid to the enterprise but not exceeding the maximum level prescribed by the People's Committee of the province.

c) For projects and sub-projects with service charges paid to enterprises performing services related to compensation and land clearance calculated based on the level prescribed by the People's Committee of the province at point a of this clause 500 million VND or more/project, sub-project, must organize bidding to select enterprises providing compensation and land clearance services. Bidding to select providers shall be carried out in accordance with the law on bidding.

d) Enterprises providing compensation and land clearance services  perform financial obligations to the State for the portion of service costs paid in accordance with the provisions of the law.

Article 6. Budgeting, using, and finalizing the expenses for organizing compensation, support, and resettlement

1. The process of budgeting, using, and finalizing the expenses for organizing compensation, support, and resettlement (except for cases stipulated in Clause 2 and Clause 3 of this Article) shall be carried out as follows:

a) Along with preparing the compensation, support, and resettlement plan, the organization entrusted with implementing compensation, support, and resettlement shall base on the contents and levels of expenditure specified in Article 4 and Article 5 of this Circular and the expected workload to prepare the budget for organizing compensation, support, and resettlement to submit for review by the Department of Finance (for projects and sub-projects approved by the Provincial People's Committee on the compensation, support, and resettlement plan) and the Financial Planning Office (for projects and sub-projects approved by the District, County, City, and Town People's Committees on the compensation, support, and resettlement plan) for approval by the respective level People's Committee.

In cases where immediate implementation of compensation, support, and resettlement tasks is required but the budget for organizing compensation, support, and resettlement of the project or sub-project has not yet been approved, the organization entrusted with implementing compensation, support, and resettlement may temporarily borrow funds from the project or sub-project investor to cover the necessary expenditures.

b)  After the budget for organizing compensation, support, and resettlement is approved, the organization entrusted with implementing compensation, support, and resettlement shall transfer one (01) copy to the project or sub-project investor for coordination in implementation.

Based on the approved budget for organizing compensation, support, and resettlement, the project or sub-project investor shall transfer the entire budget for organizing compensation, support, and resettlement according to the approved budget to the organization entrusted with implementing compensation, support, and resettlement for use in the contents specified in Article 4 of this Circular.

c) The head of the organization entrusted with implementing compensation, support, and resettlement is responsible for managing and using the budget for organizing compensation, support, and resettlement of the project or sub-project in accordance with the contents and levels of expenditure in the approved budget.

If the approved budget is insufficient to cover actual expenditures, the organization entrusted with implementing compensation, support, and resettlement shall prepare a supplementary budget, submit it for review by the finance authority specified in Point a of this Clause, and request the respective level People's Committee to consider and approve the supplementary budget; at the same time, notify the project or sub-project investor for coordination in implementation.

The use and accounting of this budget shall be carried out in accordance with the laws on the management and use of state budget funds.

d) Not later than thirty (30) days from the completion date of the compensation, support, and resettlement work of the project or sub-project, the organization entrusted with implementing compensation, support, and resettlement shall be responsible for reporting the finalization of the entire budget for organizing compensation, support, and resettlement received and used to the finance authority specified in Point a of this Clause for approval of the finalization in accordance with the laws on the management and use of state budget funds. In cases where the actual expenditures approved by the finalization are less than the received budget, the difference shall be handled as follows:- For projects and sub-projects organized by land development organizations entrusted with implementing compensation, support, and resettlement that have been granted autonomy and responsibility under the Government's regulations, the difference shall be accounted for as the operational results of the unit;

- For projects and sub-projects organized by the Compensation, Support, and Resettlement Councils at the district level or land development organizations not granted autonomy and responsibility under the Government's regulations, the difference shall be returned to the investor, who must adjust the finalization of the budget for organizing compensation, support, and resettlement according to the actual expenditures.

đ) The organization entrusted with

implementing compensation, support, and resettlement is responsible for managing the finalization files including: the approved finalization report and related documents for the finalization report on the expenses for implementing compensation, support, and resettlement of the project or sub-project. 2. In cases where capital is borrowed from the Land Development Fund or the State Treasury to organize compensation, support, and resettlement:

a) The organization entrusted with implementing compensation, support, and resettlement shall base on the contents and levels of expenditure specified in Article 4 and Article 5 of this Circular and the expected workload to prepare the budget for organizing compensation, support, and resettlement to submit for review by the Department of Finance and approval by the Provincial People's Committee. b) Based on the approved budget, the Land Development Fund or the State Treasury shall be responsible for transferring the advance capital or temporary advance capital to the organization entrusted with implementing compensation, support, and resettlement for use in the contents specified in Article 4 of this Circular.

c) The head of the organization entrusted with implementing compensation, support, and resettlement is responsible for managing and using the budget for organizing compensation, support, and resettlement in accordance with the contents and levels of expenditure in the approved budget.

If the approved budget is insufficient to cover actual expenditures, the organization entrusted with implementing compensation, support, and resettlement shall prepare a supplementary budget, submit it for review by the Department of Finance and approval by the Provincial People's Committee for supplementary approval; at the same time, notify the Land Development Fund or the State Treasury for coordination in implementation.

d) The finalization of the budget for organizing compensation, support, and resettlement of the project or sub-project and handling cases where the actual expenditures approved by the finalization are less than the received budget shall be carried out in accordance with the provisions of Point d of Clause 1 of this Article.

In case the approved budget is insufficient for actual expenditures, the organization entrusted with implementing compensation, support, and resettlement shall prepare a supplementary budget estimate, submit it to the Department of Finance for review, and request the provincial People's Committee to approve the supplementary budget; at the same time, notify the Land Development Fund or the State Treasury to coordinate in its implementation.

The use and accounting of this budget shall be carried out in accordance with the laws on the management and use of state budget funds.

d) The settlement of the project implementation costs for compensation, support, and resettlement, and the handling of cases where the actual expenditures according to the approved settlement are less than the received implementation funds as stipulated in point d, Clause 1 of this Article. As for projects and sub-projects carried out by the Land Compensation, Support, and Resettlement Council at the district level or land development funds that have not been granted autonomy and self-responsibility according to the Government's regulations, the difference between the actual expenditure approved in the final settlement and the received development land fund shall be refunded to the Development Land Fund and the State Treasury in accordance with the provisions.

implementing compensation, support, and resettlement is responsible for managing those responsible for compensation, support, and resettlement shall refund the advance capital and advance capital fees to the Development Land Fund or the State Treasury in accordance with the provisions.

e) The management of the final settlement file shall be implemented in accordance with the provisions of point đ clause 1 of this Article.

3. In cases where enterprises are hired to provide services related to compensation and land clearance, the basis for the budget estimate approved by the competent authority and the progress of implementation, the organization entrusted with compensation, support, and resettlement shall transfer funds to the enterprise to carry out the contracted service tasks in accordance with the approved budget and signed contracts.  

4. The organization entrusted with compensation, support, and resettlement shall be responsible for preparing the budget and finalizing the settlement of funds for organizing compensation, support, and resettlement in accordance with the provisions of clause 1 and clause 2 of this Article. For service rental costs settled based on the amount paid to the enterprise according to the approved budget and signed contracts to settle the contract.

Article 7. Handling cases where the Provincial People's Committee assigns additional tasks to the Land Development Organization

If the Provincial People's Committee assigns additional tasks (outside the task of organizing compensation, support, and resettlement) to the Land Development Organization, then the Chairman of the Provincial People's Committee decides on the specific content and amount of expenses from the state budget according to the laws on state budget; other expenses shall be implemented according to the financial mechanism of the Land Development Organization stipulated in Circular Joint No. 01/2010/TTLT-BTNMT-BNV-BTC dated January 8, 2010, issued by the Ministry of Natural Resources and Environment, the Ministry of Home Affairs, and the Ministry of Finance guiding the functions, responsibilities, authorities, organizational structure, and financial mechanisms of the Land Development Organization.

Article 8. Handling cases where compensation, support, and resettlement projects and sub-projects are being implemented when this Circular takes effect

For projects, sub-projects, and components that have approved compensation, support, and resettlement plans or are currently implementing compensation and support payments according to the approved plan before this Circular takes effect, the preparation of budgets, use, and finalization of settlement of funds for organizing compensation, support, and resettlement when the state recovers land shall be carried out according to previous regulations, without applying or adjusting according to the provisions of this Circular.

Article 9. Effective Date

1. This Circular takes effect from June 1, 2010.

2. Abolish the following documents of the Ministry of Finance:

a) Circular No. 116/2004/TT-BTC dated December 7, 2004 guiding the implementation of Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the state recovers land;

b) Circular No. 69/2006/TT-BTC dated August 2, 2006 amending and supplementing Circular No. 116/2004/TT-BTC dated December 7, 2004;

c) Circular No. 126/2007/TT-BTC dated October 30, 2007 guiding the preparation of budgets, use, and finalization of settlement of funds for organizing compensation, support, and resettlement for construction projects in difficult areas.

3. During the implementation of this Circular, if any difficulties arise, please promptly report to the Ministry of Finance for coordination in resolving them./.