Decree No. 62/2018/ND-CP on financial support for the use of public utility products and services in water conservancy

DECREE

Regulations on financial support for the use of public goods products and services in water conservancy

Pursuant to the Law on Government Organization dated June 19, 2015;

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

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

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to the Ordinance on Exploitation and Protection of Water Conservancy Works dated April 4, 2001;

At the proposal of the Minister of Finance;

The Government promulgates this Decree on financial support for the use of public goods products and services in water conservancy.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the subjects, scope, amount, and methods of financial support for the use of public goods products and services in water conservancy.

Article 2. Applicability

This Decree applies to agencies, organizations, and individuals participating in the exploitation of water conservancy works within the territory of Vietnam, including owners of water conservancy works; managers of water conservancy works; organizations and individuals exploiting water conservancy works; organizations and individuals using public goods products and services in water conservancy, and other related organizations and individuals.

Chapter II

FINANCIAL SUPPORT FOR THE USE OF PUBLIC GOODS PRODUCTS AND SERVICES IN WATER CONSERVANCY

Article 3. Subjects eligible for financial support for the use of public goods products and services in water conservancy

1. All areas of agricultural land serving research and experimental production, areas of annual crop land that have at least one rice crop in a year; areas of salt production land. Areas of annual crop land that have at least one rice crop in a year include land with plans to plant at least one rice crop in a year or land with plans to plant annual crops but actually have at least one rice crop in a year.

2. All areas of agricultural land allocated or recognized by the State for poor households. The identification of poor households is based on the poverty standard issued by the Prime Minister's Decision.

3. Agricultural land within the allocation limit for the following subjects:

a) Households and individuals engaged in agriculture that are allocated or recognized by the State for agricultural production, including inherited, donated, or transferred land. Households and individuals engaged in agriculture include: People with permanent residence registration in the locality; people whose main source of livelihood is agricultural production, aquaculture, or salt production, confirmed by the People's Committee of communes, wards, or towns as long-term residents in the locality without permanent residence registration; households and individuals previously working in non-agricultural industries and having permanent residence registration in the locality who now lack employment; state officials, civil servants, employees, workers, and soldiers who have retired due to health reasons or job restructuring and are living permanently in the locality; children of state officials, civil servants, employees, and workers living in the locality who have reached working age but are unemployed.

b) Households and individuals who are members of agricultural production cooperatives that have received stable land allocation from cooperatives or state farms (or agricultural companies converted from state farms) for agricultural production in accordance with the law. The allocation of land by cooperatives and state farms (or agricultural companies converted from state farms) for agricultural production shall be carried out in accordance with the provisions of Government Decree No. 168/2016/NĐ-CP dated December 27, 2016.

c) Households and individuals who are state farm workers that have received stable land allocation from state farms for agricultural production in accordance with the law. State farm workers include: Officials, workers, and staff currently working for state farms; households with members currently working for state farms or who have retired or are receiving benefits due to health issues and are residing in the area; households with a need for direct agricultural production or aquaculture residing in the area.

d) Households and individuals engaged in agricultural production that have the right to contribute their agricultural land to establish agricultural production cooperatives in accordance with the Law on Cooperatives.

4. Cases not falling under the subjects eligible for financial support as stipulated in this Article must pay for the use of water conservancy products and services in accordance with the regulations.

Article 4. Level of support for water conservancy public goods products and services

1. Level of support for water conservancy public goods products and services for rice cultivation land:

a) In cases where partial active irrigation and drainage are implemented, the level of support shall be 60% of the support level specified in the above table.

b) In cases where only gravity-based irrigation and drainage sources are created, the level of support shall be 40% of the support level specified in the above table.

c) In cases where only power-based irrigation and drainage sources are created, the level of support shall be 50% of the support level specified in the above table.

d) In cases where tidal currents are utilized for irrigation and drainage, the level of support shall be 70% of the support level for gravity-based irrigation and drainage as specified in the above table.

đ) In cases where sources must be created from the second tier or higher for works constructed according to approved planning, the level of support shall be increased by 20% compared to the support level specified in the above table.

e) In cases where separate levels of support are required for irrigation and drainage on the same area, the support level for irrigation shall be calculated at 70%, and for drainage at 30% of the support level specified in the above table.

2. The level of support for areas cultivating seedlings, vegetables, crops, short-term industrial plants including winter crops shall be 40% of the support level for rice cultivation land.

3. The level of support applied to salt production shall be 2% of the value of finished salt.

4. The level of support for supplying water for aquaculture and irrigation for long-term industrial crops, fruit trees, flowers, and medicinal plants shall be calculated according to the following table:

a) In cases where water supply for aquaculture utilizes tidal currents, it shall be calculated at 50% of the support cost specified in the above table.

b) In cases where water supply for irrigation of long-term industrial crops, fruit trees, flowers, and medicinal plants cannot be calculated based on cubic meters (m³), it shall be calculated based on area (ha), with the support cost being 80% of the support level for water conservancy public goods products and services for rice cultivation land for one year as stipulated.

The level of support prescribed in this Article is the maximum level of support based on the maximum price, applicable to each irrigation and drainage method, each region, and calculated at the headgate of the cooperative organization's water use to the main work of the water conservancy project. The actual level of support must be based on the support ratio and specific price determined by the Ministry of Agriculture and Rural Development for central water conservancy project exploitation organizations and by the provincial People's Committee for local water conservancy project exploitation organizations at the time of support.

Article 5. Method of support and state budget expenditure tasks

1. The state budget pays the cost of using water conservancy public goods products and services directly to water conservancy project exploitation organizations based on the acceptance of area, volume, irrigation and drainage methods, and the support level as prescribed in this Decree.

a) The central budget pays the cost of using water conservancy public goods products and services for central water conservancy project exploitation organizations.

b) The local budget pays for local water conservancy project exploitation organizations.

2. Localities use the local budget and central budget support (if any) to support local water conservancy project exploitation organizations. The central budget supports according to the principle of targeted support from the central budget to the local budget to implement social welfare policies decided by the Prime Minister.

Chapter III

ESTABLISHMENT, ALLOCATION, ISSUANCE OF PROVISIONAL DECISIONS ON THE COST OF SUPPORT FOR USING WATER CONSERVANCY PUBLIC GOODS PRODUCTS AND SERVICES

Article 6. Preparation of Budget Estimates for Support Expenses

1. In accordance with the State Budget Law, organizations operating water conservancy works shall prepare budget estimates for support expenses for using products and public services of water conservancy works, and other support expenses, and report to the competent authority:

a) Organizations operating central water conservancy works shall report to the Ministry of Agriculture and Rural Development and the Ministry of Finance; the Ministry of Agriculture and Rural Development shall consolidate and submit to the Ministry of Finance.

b) The Department of Finance shall take the lead in coordinating with the Department of Agriculture and Rural Development to consolidate the budget estimates of local water conservancy work operating organizations and report to the provincial People's Council for approval by the provincial People's Council, while also reporting to the Ministry of Finance.

c) Organizations operating water conservancy works managed by the district level shall be led by the District Financial Planning Office, coordinating with the District Department of Agriculture and Rural Development to inspect and consolidate the budget estimates and report to the district People's Committee to send to the Department of Finance for consolidation.

2. The Ministry of Finance shall consolidate the budget estimates for support expenses for using products and services of water conservancy works from organizations operating central water conservancy works, and the budget estimates of localities into the central state budget estimate to report to the Government for submission to the National Assembly for approval.

Article 7. Allocation of Budget Estimates for Support Expenses

1. The Ministry of Finance shall allocate support expenses for using products and public services of water conservancy works to the Ministry of Agriculture and Rural Development and localities based on the state budget approved by the National Assembly and the Decision of the Prime Minister.

2. The provincial People's Committee shall implement the allocation of budget estimates for support expenses for using products and public services of water conservancy works to organizations operating water conservancy works and districts. The Department of Finance shall take the lead in coordinating with the Department of Agriculture and Rural Development to consolidate and present to the provincial People's Committee for allocation of support expenses to organizations operating water conservancy works and districts.

Article 8. Issuance and Payment of Support Expenses

Based on the allocated budget estimates, financial agencies shall issue and pay support expenses for using products and public services of water conservancy works to organizations operating water conservancy works through payment orders. The issuance to organizations operating water conservancy works shall be carried out in accordance with current regulations.

Article 9. Settlement of Support Expenses

1. The settlement of support expenses for using products and public services of water conservancy works shall be conducted in accordance with the State Budget Law and guiding documents. The district budget shall be settled with the provincial (local) budget, and the local budget shall be settled with the central budget.

2. Organizations operating water conservancy works must have complete documents as the basis for settlement: Water supply, drainage, and water supply contracts between organizations operating water conservancy works and organizations and individuals using products and public services of water conservancy works; acceptance certificates and liquidation certificates of water supply, drainage, and water supply contracts; volumes of maintenance, repair, and dredging of water conservancy works funded by support expenses for using products and public services of water conservancy works.

3. The Ministry of Agriculture and Rural Development shall take the lead in coordinating with the Ministry of Finance to organize inspections and approve the support expenses for using products and public services of water conservancy works of central water conservancy work operating organizations.

4. The provincial People's Committee shall be responsible for organizing inspections and approving the settlement of support expenses for using products and public services of water conservancy works of local water conservancy work operating organizations (including companies and districts). The Department of Finance shall take the lead in coordinating with the Department of Agriculture and Rural Development to organize financial statement inspections and report to the provincial People's Committee for approval.

5. Organizations operating water conservancy works shall be responsible for the accuracy and honesty of the reported data.

Article 10. Policy towards organizations operating water conservancy works

1. Organizations operating water conservancy works, in addition to the portion of the cost of using products and services of public interest in water conservancy that is paid by the state, shall also enjoy subsidies, price supports (except for cases where products and services of public interest in water conservancy are provided through bidding), and financial support according to the provisions of the law based on the budget capacity at each level.

2. The central budget shall provide subsidies, price supports, and financial support for organizations operating central-level water conservancy works.

3. Local budgets shall provide subsidies, price supports, and financial support for organizations operating local-level water conservancy works.

Chapter IV

IMPLEMENTATION

Article 11. Responsibilities of organizations operating water conservancy works

1. To fully and promptly serve agricultural production, aquaculture, and salt-making with quality water, irrigation, and drainage services in accordance with the schedule, while thoroughly implementing water-saving policies.

2. To use allocated funds for their intended purposes and effectively.

3. To prepare budgets, develop business plans, and consolidate final accounts reports for submission to competent authorities for approval as follows:

a) Organizations operating water conservancy works under central management shall report to the Ministry of Agriculture and Rural Development and the Ministry of Finance.

b) Organizations operating water conservancy works under local management shall report to the People's Committee of the province for reporting to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

Article 12. Responsibilities of the Ministry of Agriculture and Rural Development

1. To decide on the method of supplying products and services of public interest in water conservancy for centrally-managed organizations operating water conservancy works in accordance with regulations.

2. To lead the supervision of the management and operation of the system of water conservancy works and policies supporting users of products and services of public interest in water conservancy.

3. To coordinate with the Ministry of Finance to guide, inspect, and supervise the implementation of policies supporting the costs of using products and services of public interest in water conservancy by localities.

Article 13. Responsibilities of the Ministry of Finance

1. To consolidate budgets and final accounts when implementing policies supporting the costs of using products and services of public interest in water conservancy for centrally-managed organizations operating water conservancy works and organizations operating water conservancy works of provinces and centrally-administered cities, and to report to the Government for submission to the National Assembly for decision in accordance with the State Budget Law.

2. To lead and coordinate with the Ministry of Agriculture and Rural Development to guide, inspect, and supervise the use of financial support for the use of products and services of public interest in water conservancy by localities.

3. To guide models of reports on preparing budgets and final accounts for financial support for the use of products and services of public interest in water conservancy.

Article 14. Responsibilities of the People's Committees of Provinces

1. To implement specific management levels for water conservancy works according to the guidance of the Ministry of Agriculture and Rural Development.

2. To supervise the establishment and issuance of labor norms and economic and technical norms for organizations operating water conservancy works.

3. To decide on the method of supplying products and services of public interest in water conservancy for locally-managed organizations operating water conservancy works; to approve budgets, allocate budgets, distribute funds; manage settlement and final accounts of funds; and to stipulate measures for water conservancy works for locally-managed organizations operating water conservancy works.

4. To prepare, consolidate budgets, and final accounts of financial support for the use of products and services of public interest in water conservancy for organizations operating water conservancy works, and to submit them to the People's Councils of provinces and centrally-administered cities for consideration and decision; to consolidate and report to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

5. To guide, inspect, and audit the implementation of policies supporting the costs of using products and services of public interest in water conservancy by locally-managed organizations operating water conservancy works and the use of funds for support from the budget in accordance with the State Budget Law.

Article 15. Effective Date

1. This Decree takes effect from the date of issuance. The period for supporting the costs of using products and services of public interest in water conservancy runs from January 1, 2017 to June 30, 2018.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, and chairpersons of provincial people's committees directly under the central government are responsible for implementing this Decree./.