Joint Circular No. 61 TT/LB guides the implementation of the State budget index

JOINT CIRCULAR

Guidelines for Implementing the Budget Item List of the State

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In order to gradually improve the work of preparing and implementing the State Budget, linking financial-budgetary work with planning and statistical work, combining management under the main administrative sector with national economic sector management, the Minister of Finance has issued Decision No. 300/TC/NSNN promulgating the Budget Item List of the State to be implemented from the 1988 fiscal year.

To effectively implement the new Budget Item List of the State, the Ministry of Finance and General Statistics Office provide guidance on some points as follows:

I. On the Chapters of the Budget Item List of the State

The Chapters of the Budget Item List only indicate the main managing agency. Each Chapter will reflect all activities of revenue and expenditure of the State Budget of a main managing agency, including the agency itself and all subordinate units.

According to the current administrative structure of the State, there are four levels of main managing agencies: Central, provincial (city, special administrative region directly under the Central Government), the list of Chapters of the Budget Item List of the State includes: Chapters of central-level main managing agencies (List A), Chapters of provincial-level main managing agencies (List B), Chapters of county-level main managing agencies (List C), and Chapters of commune-level main managing agencies (List D).

Thus, each list of Chapters corresponds to the list of main managing agencies at each level, the code number of the Chapter (each list) is uniformly defined according to the code number of the main managing agency.

To promptly meet the implementation of the new Budget Item List of the State, the Ministry of Finance and General Statistics Office temporarily issue along with this Circular the Lists of Chapters for the Budget Item List of the State.

During the process of using the Chapters of the Budget Item List of the State, attention should be paid to:

- The Chapter is the main managing agency, for units at the grassroots level that belong to multiple main managing agencies, the Chapter is the highest main managing agency (at each level).

- The lists of Chapters already issued are used nationwide, absolutely not to be added to or changed without authorization, in cases where there is no name in the prescribed lists, it should be recorded under Chapter 96 "Other Units".

- In addition to Chapters indicating main managing agencies, due to the particularities of financial management, three special Chapters are also opened:

+ Chapter 97: Taxes collected from collective economy

+ Chapter 98: Taxes collected from individual economy

+ Chapter 99: Other relationships of the State Budget

Based on the lists of Chapters already issued and the above guidance points, main managing agencies at all levels shall proceed to determine their own Chapters and those of subordinate units, together with determining the Type, Item, and Class of such units (which will be discussed in Part II of this Circular).

II. ON THE TYPES, ITEMS, AND CLASSES OF THE BUDGET ITEM LIST OF THE STATE

Types, Items, and Classes of the Budget Item List of the State correspond to the first, second, and third levels of the National Economic Industry Classification Table issued along with Decree No. 177/HĐBT dated October 18, 1982 of the Council of Ministers and Decision No. 637/TCTK/PPCĐ dated October 25, 1982 of the General Statistics Office.

- The National Economic Industry Classification Table has 16 first-level industries, Code numbers from 01 to 16, the Budget Item List of the State has types from 01 to 16 corresponding to the first-level industries of the National Economic Industry Classification Table and additionally opens type 17 "National Defense Security" (Code number 30) according to the special requirements of financial management.

- The National Economic Industry Classification Table has 64 second-level industries. The Budget Item List also has 64 items corresponding and the middle code is the same as the code of the second-level industry of the National Economic Industry Classification Table.

- The National Economic Industry Classification Table has 133 third-level industries, to simplify record-keeping, the Budget Item List only has 62 classes. A class is a group of several third-level economic industries and has some special classes required by financial management, the code of the class does not use the code of the third-level industry but is separately defined according to Decision No. 300 TC/NSNN.

To be able to record revenues and expenditures according to the Budget Item List of the State, all agencies, enterprises, economic organizations, and individuals having relations with the State Budget (hereinafter referred to as units) must be classified according to the first and second levels of the National Economic Industry Classification Table, thereby determining the Type, Item, and Class of their unit in the Budget Item List of the State.

The determination of the code numbers of Types, Items, and Classes of units is carried out as follows:

1/ For state-owned enterprises:

The Provincial Department of Finance (city, special administrative region) cooperates with the Provincial Bureau of Statistics to compile a list of enterprise units, classified by industry according to the first, second, and third levels, based on which they report to the enterprise, the main managing agency, the finance and banking institutions where transactions take place (according to Model No. 1).

2/ For administrative and service units:

Based on the principles of industry classification stipulated in Decision No. 637 TCTK - PPCĐ of the General Statistics Office and the guidelines provided in this Circular, the main managing agencies cooperate with the same-level statistics agencies to determine the first, second, and third-level industries and thereby determine the Type, Item, and Class of the Budget Item List of the State for subordinate units (according to Model No. 2) and send them to the same-level finance agency, the finance agency reviews and notifies back to the main managing agency and the banking institution where transactions take place.

3/ For cooperative societies and stable individual businesses:

The Finance Section, Taxation and Commerce Section cooperate with the Statistics Section, Market Management Board, Small and Medium Enterprises Association, based on the nature of the industry declared in the business registration of cooperative societies and individual businesses to determine the Type, Item, and Class of the Budget Item List for each establishment (according to Model No. 3) and send it to the banking institution where transactions take place.

Cooperative societies engaged in agriculture with multiple industries but not yet operating independently, and agricultural-industrial-commercial-credit cooperative societies, are all classified under Type 03 of the Budget Item List of the State.

4/ For unstable individual businesses:

Not to classify industries according to units but to base on the nature of each revenue and expenditure item (revenue from what activity, expenditure for what purpose...) to determine the Type, Item, and Class of each revenue and expenditure transaction directly on the budget revenue and expenditure vouchers. The Provincial Department of Finance and the Taxation and Commerce Bureau need to guide the business staff to thoroughly understand the method of determining the Type, Item, and Class of the Budget Item List of the State according to the National Economic Industry Classification Table.

Units shall not arbitrarily change their chapter code, type, clause, or category. In cases where there are changes in organizational structure or business tasks, they must work with the same-level statistical and financial authorities to re-determine these codes. The process of determining the chapter, type, clause, and category for all units nationwide according to the above guidance must be completed before December 31, 1987, to ensure that the state budget revenue and expenditure accounting under the new State Budget Structure can proceed normally from the beginning of the 1988 fiscal year.

The Ministry of Finance and the General Statistics Office will provide specific guidelines on the accounting, reporting, and analysis of state budget revenues and expenditures to align with the new State Budget Structure.

Above, the Joint Ministry of Finance and General Statistics temporarily stipulates certain specific points regarding operational procedures to implement the new State Budget Structure.

All Ministries, sectors, localities, and financial and statistical agencies at all levels must strictly comply with the regulations and guidelines set forth in this Circular. Any provisions or guidelines concerning the State Budget Structure that conflict with this Circular shall have no effect.

During implementation, if any difficulties arise, please promptly report them to the Joint Ministry for appropriate resolution measures to be taken./.