Circular No. 60/2017/TT-BTC guiding the management, use, payment, and settlement of expenses for road maintenance and management

 

CIRCULAR

Guidelines on the management, use, payment, and settlement of road administration and maintenance fundsquyết toán kinh phí quản lý, bảo trì đường bộ ||| settlement of road management and maintenance经费决算

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Pursuant to the Road Traffic Law 2008 dated November 13, 2008;

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

Pursuant to the Law on Fees and Registration Fees dated November 25, 2015;

Pursuant to Decree No. 18/2012/NĐ-CP dated March 13, 2012; Decree No. 56/2014/NĐ-CP dated May 30, 2014, and Decree No. 28/2016/NĐ-CP dated April 20, 2016 of the Government on the Road Maintenance Fund;

Pursuant to the Decree No. 11/2010/NĐ-CP dated February 24, 2010 of the Government on management and protection of road infrastructure;

Pursuant to Decree No. 10/2013/NĐ-CP dated January 11, 2013 of the Government on the management, use, and operation of road infrastructure assets;

Pursuant to Decree No. 120/2016/NĐ-CP dated August 23, 2016 of the Government detailing and guiding the implementation of certain provisions of the Law on Fees and Charges;

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

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;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular guiding the regime for the management, use, payment, and settlement of road administration and maintenance funds.

Article 1. General Provisions

1. Scope of Regulation: This Circular guides the regime for the management, use, payment, and settlement of road administration and maintenance funds as prescribed in Decree No. 120/2016/NĐ-CP dated August 23, 2016 of the Government detailing and guiding the implementation of certain provisions of the Law on Fees and Charges; Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law; Decree No. 18/2012/NĐ-CP dated March 13, 2012, Decree No. 56/2014/NĐ-CP dated May 30, 2014, and Decree No. 28/2016/NĐ-CP dated April 20, 2016 of the Government on the Road Maintenance Fund;

2. Applicability: Agencies, organizations, and individuals related to the management and use of road administration and maintenance funds.

3. The Road Maintenance Fund is a state fund with legal personality, having a seal and an account opened at the State Treasury. The Fund is established at the central level called the Central Road Maintenance Fund (hereinafter referred to as the Central Fund) and is established at the provincial level called the Provincial Road Maintenance Fund (hereinafter referred to as the Provincial Fund).

4. Sources of the Road Maintenance Fund:

a) Sources of the Central Fund include:

- The central budget allocated from the revenue from the road usage fee paid to the central budget (65% of the total national road usage fee revenue forecast);

- Additional funding from the central budget for the Central Fund. - Other revenues related to road usage and other sources as provided by law.

b) Sources of the Provincial Fund include:

- Additional funding from the central budget targeted to the provincial budget from the revenue from the road usage fee paid to the central budget (35% of the total national road usage fee revenue forecast);

- Additional funding from the provincial budget for the Provincial Fund.

- Other revenues related to road usage and other sources as provided by law.

5. The Central Fund ensures the funding for the management and maintenance of national highways; the Provincial Fund ensures the funding for the management and maintenance of local roads.

6. Opening Accounts:

a) The Central Fund opens an account at the State Treasury (State Treasury Branch) to receive the Fund's financial resources.

The Road Management Bureaus, Departments of Transport (for national highways authorized to manage), Project Management Boards, and other units assigned tasks and funding for road management and maintenance by the Ministry of Transport (hereinafter referred to as other units), and the Central Fund Office open accounts at the State Treasury branch where transactions take place to receive financial resources and implement payments from the Central Fund.

b) The Provincial Fund opens an account at the State Treasury of the province or centrally administered city to receive the Fund's financial resources.

Units assigned tasks and funding for road management and maintenance at the local level open accounts at the State Treasury branch where transactions take place to receive financial resources and implement payments from the Provincial Fund.

7. The Road Maintenance Fund is subject to inspection, audit, and review by state agencies as prescribed; annually, the preparation of budgets, allocation, assignment of budgets, and management, payment, and settlement of income and expenditure of the Fund are carried out according to current regulations.

8. The Road Maintenance Fund must disclose the management and use of the Fund and report on the implementation of financial disclosure as prescribed.

Article 2. Contents of the budget for managing and maintaining national roads

1. Costs for regular maintenance of road construction projects.

2. Costs for periodic repair of road construction projects.

3. Emergency repair costs: to address the consequences of natural disasters, floods, typhoons, to handle black spots and potential traffic accident points, or other unusual causes, and land clearance costs (if necessary) to ensure smooth and safe road traffic operations according to regulations issued by the Minister of Transport and laws on land management.

4. Costs for activities of fixed and mobile vehicle weight inspection stations, including: regular operating expenses, non-regular expenses (purchase, repair, testing equipment; repair and upgrade station buildings).

5. Support for ferry service fees (the portion not included in the price) according to the provisions of the competent authority.

6. Costs for inspecting, monitoring, and testing the quality of road construction projects in accordance with laws on maintaining construction works; costs for establishing procedures and standards for managing and operating the maintenance of operational road construction projects with special requirements.

7. Costs for purchasing and repairing equipment and facilities directly serving state management functions related to road maintenance activities.

8. Costs for purchasing patrol uniforms.

9. Costs for repairing and renovating district offices.

10. Costs for the operation of the management machinery of the Road Maintenance Fund: applied according to the standards of state agencies (for staff assigned to perform dedicated tasks) and other expenses according to the prescribed system to ensure the operation of the Management Council of the Road Maintenance Fund and its supporting machinery.

11. Costs for supervisory and inspection activities of road infrastructure (including support costs for local traffic supervision to carry out tasks on national highways under delegation (if applicable).

12. Costs for supporting vehicle weight inspection work of the Vietnam Highway Administration.

13. Costs for applying technology and leasing/purchasing technological products and services to improve the quality and efficiency of road construction project management and maintenance.

14. Costs for overseeing and preserving road construction projects in certain special cases as decided by the Minister of Transport (for national highways) and the Chairman of the People's Committee of provinces and centrally-administered cities (for local roads).

15. Costs for installing speed reduction barriers and warning signs at intersections between roads and railways.

16. Costs for purchasing and repairing equipment and facilities to serve river-crossing operations (self-propelled ferries, steel ferries, and towing boats) to ensure smooth traffic flow on the road network according to regulations issued by the Minister of Transport, after being reviewed and decided by the Road Maintenance Fund Management Council.

17. Other costs directly related to the management and maintenance of road construction projects as decided by the Road Maintenance Fund Management Council.

Article 3. Establishment and allocation of the budget for road usage fees

1. Establishment of the revenue budget

a) Annually, based on the Circular stipulating the rates, collection, payment, exemption, management, and use of road usage fees issued by the Ministry of Finance, units tasked with collecting road usage fees establish their revenue budget at the same time as building their unit’s budget, and submit it to the Central Management Council of the Fund.

b) The Central Management Council of the Fund establishes the revenue budget along with detailed explanatory calculations; determining the portion retained for the fee collection organization and the portion submitted to the central government budget according to the prescribed system, and sends it to the Ministry of Transport.

c) The Ministry of Transport reviews and consolidates the Central Fund’s revenue budget into the annual revenue and expenditure budget plan of the Ministry, and submits it to the Ministry of Finance for inclusion in the annual central government revenue distribution plan for review and decision by the competent authorities.

2. Allocation of the revenue budget

Based on the road usage fee revenue budget allocated by the competent authority, the Ministry of Transport allocates the road usage fee revenue budget to the Central Fund. The Central Management Council of the Fund then allocates the road usage fee revenue budget to units tasked with collecting road usage fees.

Article 4. Establishment and allocation of the central fund budget

1. Budget establishment

a) Annually, based on the status of road construction projects; economic and technical standards; expenditure contents stipulated in Article 2 of this Circular; unit prices and expenditure standards prescribed by competent authorities; current financial expenditure regulations; the Central Fund Office shall establish the budget for operational expenditures and submit it to the Central Fund Management Board; the Road Administration Bureau, Provincial Department of Transport (for national highways authorized to manage), and other units shall establish budgets for management and maintenance needs of national highways, at the same time as establishing their unit budgets, and submit them to the Vietnam Highway Administration for consolidation and submission to the Central Fund Management Board.

b) The Central Fund Management Board shall establish the budget for expenditures, accompanied by detailed explanations of the basis for calculation, orientation, principles of distribution, and priority order for each group of tasks of the central fund, and submit it to the Ministry of Transport.

c) The Ministry of Transport shall review and consolidate the central fund's budget into the annual state budget revenue and expenditure plan of the Ministry, and submit it to the Ministry of Finance for inclusion in the annual central government budget allocation plan for consideration and decision by competent authorities.

2. Allocation of budget

a) Based on the budget for expenditures allocated by the competent authority, the Ministry of Transport shall notify the central fund of the budget for highway management and maintenance.

b) The Central Fund Management Board shall notify the Vietnam Highway Administration of the budget for highway management and maintenance, and the Central Fund Office of the budget for operational activities, to develop plans for allocating the budget for highway management and maintenance.

c) Based on the approved highway management and maintenance plan by the Ministry of Transport and the notification of the budget for highway management and maintenance from the Central Fund Management Board, the Vietnam Highway Administration shall develop plans for allocating the budget for highway management and maintenance to the Road Administration Bureaus, Provincial Departments of Transport (for national highways authorized to manage), and other units according to the expenditure contents stipulated in Article 2 of this Circular, detailing each project with specific sections of roads, routes, quantities, and implementation funds (excluding projects to mitigate flood and storm damage and ensure initial traffic flow as specified in Circular No. 30/2010/TT-BGTVT dated October 1, 2010 of the Ministry of Transport on flood and storm prevention and mitigation work in the road sector). For projects with a construction period exceeding one year, the annual budget allocation must be consistent with the approved construction volume and duration in the investment decision; no budget allocation should be made to repay debts for volumes completed in previous years but not included in the previous year's maintenance plan (except for urgent repairs, weak bridges, black spots, locations with potential traffic accidents, and other objective reasons approved by competent authorities without allocated funds); report to the Central Fund Management Board for consideration and decision.

d) After approval, the Central Fund Management Board shall allocate the operational budget to the Central Fund Office and notify the budget for highway management and maintenance to the Road Administration Bureaus, Provincial Departments of Transport (for national highways authorized to manage), and other units (if applicable).

The allocated and notified budgets to the units as stipulated in point d clause above, the Central Fund Management Board shall also send to the Ministry of Transport, Ministry of Finance, Vietnam Highway Administration, State Treasury, and the State Treasury where the unit has its transaction account for coordination in implementation. (See Appendix I attached to this Circular for the consolidated notification and allocation of the budget from the central fund to the units).

3. Based on the allocated budget for highway management and maintenance, the Road Administration Bureaus, Provincial Departments of Transport (for national highways authorized to manage), and other units shall conduct bidding, place orders, and implement highway management and maintenance plans according to current regulations.

4. For expenditure tasks with investment characteristics (routine repairs; emergency repairs (excluding projects to mitigate flood and storm damage and ensure initial traffic flow); major repairs of vehicle weight control stations, road administration houses, and other expenditure tasks with investment characteristics): Implement in accordance with the legal provisions on the management and use of regular funding for administrative agencies and public institutions for repair, renovation, expansion, and upgrading of existing facilities; maintenance of headquarters.

5. The situation of annual road usage fee collection deposited into the central government budget serves as the basis for establishing the budget for road usage fees deposited into the central government budget and state budget expenditures for road management and maintenance in the planning year, in accordance with the State Budget Law and guiding documents of the State Budget Law.

Article 5. Establishment and Allocation of Local Road Maintenance Fund Budget

1. Based on the principle of dividing funds for each local road maintenance fund as stipulated in Clause 3, Article 6 of Decree No. 18/2012/NĐ-CP dated March 13, 2012 of the Government on the Road Maintenance Fund (length of roads in the locality, number of registered standard cars in the locality, and the difficulty coefficient of revenue sources for each locality), the Central Fund Management Board shall develop a plan to allocate the revenue from road usage fees paid to the central budget (the portion allocated to localities) for the entire period of budget stability and establish a plan to allocate the annual budget expenditure from road usage fees (35% of the total national road usage fee revenue) for each locality at the same time as preparing the annual state budget, to be submitted to the Ministry of Transport for consolidation by the Ministry of Finance into the annual state budget, and then submitted to the competent authorities for decision in accordance with the State Budget Law.

For the year 2017, the Central Fund Management Board shall develop a plan to allocate the 35% of the total national road usage fee revenue according to the approved budget estimates for each local fund, to be submitted to the Ministry of Transport and consolidated by the Ministry of Finance, and then submitted to the Prime Minister for decision to supplement the target-oriented budget for localities.

2. Based on the supplementary budget expenditure from road usage fees allocated to localities (35% of the total national road usage fee revenue) approved by the competent authority, the Ministry of Finance shall allocate the supplementary target-oriented budget from the central budget to the local budget to provide funding for the local road maintenance funds.

3. Based on the supplementary budget for managing and maintaining roads provided by the central budget for the local road maintenance fund and the needs for managing and maintaining roads under local management, the Department of Transport, in coordination with the Department of Finance, shall submit to the People's Committee of the province or centrally-administered city (hereinafter referred to as the Provincial People's Committee) the budget for expenditures from the local budget for the local road maintenance fund and specify the procedures for establishing and allocating the budget for expenditures of the local road maintenance fund in accordance with the分级授权的省级或直辖市人民代表大会的规定。

4. For expenditure tasks with investment characteristics (routine repairs; emergency repairs (excluding projects to mitigate flood and storm damage and ensure initial traffic flow); major repairs of vehicle weight control stations, road administration houses, and other expenditure tasks with investment characteristics): Implement in accordance with the legal provisions on the management and use of regular funding for administrative agencies and public institutions for repair, renovation, expansion, and upgrading of existing facilities; maintenance of headquarters.

Article 6. Provisions on Granting, Advance Payment, and Settlement of Funds

1. Provisions on Granting Funds from the State Budget to the Central Fund For the first quarter of the planning year: Based on the approved budget for implementing road maintenance and management work on national highways, the Central Fund Management Board shall issue a document requesting the Ministry of Transport to request the Ministry of Finance to grant funds (in the form of payment orders) into the account of the Central Fund, up to a maximum of 25% of the annual budget.

For subsequent quarters: Based on the progress of implementing work and the disbursement of funds for managing and maintaining national highways in the previous quarter, the Central Fund Management Board shall issue a document requesting the Ministry of Transport to request the Ministry of Finance to grant funds (in the form of payment orders) into the account of the Central Fund for advance payment and settlement. The second quarter grant shall not exceed 35%, the third quarter grant shall not exceed 20%, and the fourth quarter grant shall be the remaining budget for the year.

2. Provisions on Granting Funds from the State Budget to Local Funds:

a) For the targeted supplementary funds from the central budget for local funds: Annually, based on the approved budget for targeted supplementary funds from the central budget for the local budget to implement road management and maintenance work and the notification from the Ministry of Finance to each locality, the Department of Finance shall allocate funds to the local road maintenance fund according to the plan approved by the Provincial People's Committee.

b) For the supplementary funds from the local budget for local funds: The Department of Transport, in coordination with the Department of Finance, shall submit to the Provincial People's Committee the specific level of allocation from the local budget supplementary funds for the local road maintenance fund.

c) The Department of Finance shall submit to the Provincial People's Committee the decision on the method and schedule for quarterly allocation of funds to the local road maintenance fund in accordance with the requirements of the locality.

3. Provisions on the Method of Transferring Road Maintenance Fund Funds

a) For the Central Fund

Based on the budget for funds granted by the Ministry of Finance, the budget for expenditures of the Central Fund, the Central Fund Management Board shall decide to allocate and transfer funds of the Central Fund to the Highway Administration Bureau, the Department of Transport (for national highways authorized to manage), other units (if any), the Central Fund Office, and send it to the State Treasury; the State Treasury shall transfer funds into the accounts of the relevant agencies and units at the State Treasury where transactions take place.

(See Appendix II attached to this Circular for the summary table of fund transfers from the Central Fund to units.)

b) For Local Funds

Based on the allocated budget for funds and the budget for expenditures of the local fund, the Local Fund Management Board shall decide to allocate and transfer funds of the local fund to the agencies and units assigned tasks and road maintenance management funds in the locality, to be sent to the local State Treasury; the local State Treasury shall transfer funds into the accounts of the relevant agencies and units at the State Treasury where transactions take place.

4. Provisions on Advance Payment and Settlement by the State Treasury

a) Based on the allocated budget for managing and maintaining roads, the agencies and units shall request the State Treasury where transactions take place to make advance payments and settlements to units providing public goods and services for road management and maintenance in accordance with current regulations.

b) The basis for the State Treasury to carry out settlements

- Included in the list and budget for expenditures assigned by the competent authority;

- Based on the balance in the account of the agency or unit at the State Treasury where transactions take place;

- Decision to transfer funds from the Road Maintenance Fund to units assigned budget expenditures;

- Decision to approve economic-technical reports or investment project plans for expenditure tasks that must prepare economic-technical reports or investment project plans according to mandatory regulations; tender results, procurement orders, and plans assigned by the competent authority;

- Contract for providing public goods and services for road management and maintenance.

- The acceptance report of the product and the payment statement for the management and maintenance costs of completed road construction projects;

- Approval of expenditures by the head of the unit entrusted with managing the fund's budget, along with relevant documents as prescribed;

c) State Treasury control over expenditures: The State Treasury branch where transactions take place shall check the bases specified in point b, Clause 4, Article 7 of this Decree, and implement control over disbursements from the Road Maintenance Fund before advancing funds or making payments at the request of the head of the unit entrusted with managing the budget according to current regulations, specifically:

For recurring expenditure tasks: Advance payments and settlements shall be carried out in accordance with the provisions of Circular No. 161/2012/TT-BTC dated October 2, 2012, issued by the Ministry of Finance on the regime of control and settlement of state budget expenditures through the State Treasury, Circular No. 39/2016/TT-BTC dated March 1, 2016, amending and supplementing certain articles of Circular No. 161/2012/TT-BTC dated October 2, 2012, issued by the Ministry of Finance, and other amended and supplemented documents (if any).

For investment-oriented expenditure tasks: Advance payments and settlements shall be carried out in accordance with the legal provisions governing the disbursement of regular operating funds by administrative agencies and units for repairs, renovations, expansions, upgrades of existing facilities, and maintenance of headquarters.

Article 7. Settlement of receipts and expenditures of the Road Maintenance Fund

1. Preparation and approval of the annual settlement report on receipts and expenditures of the Central Fund.

a) Settlement of receipts: Units collecting road usage fees prepare and submit the settlement report on receipts to the Central Fund Management Council and other receipts as prescribed.

b) Settlement of expenditures: Units entrusted with managing and using the Central Fund's budget prepare and submit the settlement report on the use of funds according to the prescribed forms and requirements for the settlement of state budget expenditures.

The settlement report shall be accompanied by a list of projects assigned plans for settlement during the year, detailed according to the expenditure items stipulated in Article 2 of this Circular.

c) Content, procedures for review, verification, and notification of annual settlement: These shall be carried out in accordance with the guidelines of the Ministry of Finance on the review, verification, and notification of annual settlements for administrative agencies, public institutions, organizations supported by the state, and budgets at various levels, and the provisions of this Circular, including:

- The Vietnam Highway Administration is responsible for reviewing the annual settlement reports of the Road Management Bureaus, Provincial Departments of Transport (for national highways under delegated management), and other units, and submitting them to the Central Fund Management Council.

- The Central Fund Management Council is responsible for approving the annual settlement reports on the operational expenditures of the Central Fund Office.

- The Central Fund Management Council approves the annual settlement reports on receipts and expenditures of the Central Fund and submits them to the Ministry of Transport. The Ministry of Transport is responsible for verifying the annual settlement report of the Central Fund and incorporating it into its own settlement report, which is then submitted to the Ministry of Finance.

- The Ministry of Finance is responsible for verifying the annual settlement report of the Ministry of Transport, including the annual settlement report of the Central Fund, and incorporating it into the state budget settlement report as prescribed.

d) At the end of the year, any surplus funds in the Central Fund's budget shall be transferred to the next year in accordance with the provisions of the State Budget Law and related guiding documents.

2. Preparation and approval of the annual settlement report on receipts and expenditures of the Local Fund.

a) The Department of Finance, in conjunction with the Department of Transport, shall coordinate with the People's Committee of the province to establish regulations on the preparation, review, verification, and notification of annual settlements for the Local Fund, ensuring compliance (including the portion of central budget supplements with specific purposes for local budgets allocated to the Local Fund) and consolidation into the local budget settlement report in accordance with the State Budget Law and related guiding documents.

b) At the end of the year, any surplus funds in the Local Fund's budget shall be transferred to the next year in accordance with the provisions of the State Budget Law and related guiding documents.

3. For investment-oriented expenditure tasks, the settlement must be carried out in accordance with the provisions of the Ministry of Finance regarding the settlement of repair, maintenance, renovation, upgrade, and expansion expenses from regular operating funds, as stipulated by the State Budget Law and related guiding documents.

Article 8. Inspection Work

To ensure the proper and effective use of the Road Maintenance Fund for its intended purpose, the Ministry of Transport, the Management Board of the Road Maintenance Fund, and the Department of Transport shall coordinate with the financial authorities at the same level to conduct regular and spot inspections of the management, use, and settlement of the Road Maintenance Fund.

During the management and inspection process, if any expenditures not in accordance with regulations, or expenditures that deviate from the prescribed content as stipulated in this Circular and current legal documents are discovered, they must be refunded to the Road Maintenance Fund (central and local levels) according to the分级制度; meanwhile, the individual who made the erroneous expenditure decision shall bear responsibility in accordance with the law.

Article 9. Implementation Organization

1. This Circular takes effect from August 1, 2017, and applies from the 2017 budget year.

2. The Joint Circular No. 230/2012/TTLT-BTC-BGTVT dated December 27, 2012, issued by the Ministry of Finance and the Ministry of Transport guiding the management, settlement, and final accounting of the Road Maintenance Fund (hereinafter referred to as Joint Circular No. 230/2012/TTLT-BTC-BGTVT) shall cease to be effective from the date this Circular takes effect.

3. For investment-related expenditures as stipulated in Joint Circular No. 230/2012/TTLT-BTC-BGTVT that have been allocated budgets and provided funds prior to the effectiveness of this Circular, the remaining budget (if any) shall continue to be arranged for implementation until the task is completed.

4. In cases where the referenced documents in this Circular are amended, supplemented, or replaced, they shall be applied according to the amended, supplemented, or replacement documents.

5. During the implementation process, if there are any difficulties, it is recommended that relevant agencies and units report them to the Ministry of Finance for timely resolution.