Circular No. 63/2009/TT-BTC stipulates on the work of preparing budgets, organizing budget implementation, and settling accounts for districts (urban districts), wards that do not organize People's Councils.

CIRCULAR

Provisions on the preparation of budgets, implementation of budget estimates, and finalization of county, district, and commune-level budgets where People's Councils are not organized.

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Pursuant to Resolution No. 26/2008/QH12 dated November 15, 2008 of the National Assembly, Session 4, regarding the pilot implementation of not organizing People's Councils at the county, district, and commune levels.

Pursuant to Resolution No. 725/2009/UBTVQH12 dated January 16, 2009 of the Standing Committee of the National Assembly, concerning adjustments to the tasks and powers of People's Councils and People's Committees at the provincial level and regulations on the tasks, powers, and organizational structure of People's Committees at the county, district, and commune levels where People's Councils are not organized.

Pursuant to Resolution No. 724/2009/UBTVQH12 dated January 16, 2009 of the Standing Committee of the National Assembly, concerning the list of counties, districts, and communes in central cities and provinces implementing the pilot program of not organizing People's Councils at the county, district, and commune levels.

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;

Implementing Decision No. 241/QĐ-TTg dated February 23, 2009 of the Prime Minister approving the Plan for Implementing Resolution No. 26/2008/QH12 dated November 15, 2008 of the National Assembly, Session 4, regarding the pilot implementation of not organizing People's Councils at the county, district, and commune levels.

The Ministry of Finance stipulates provisions on the preparation of budgets, implementation of budget estimates, and finalization of county, district, and commune-level budgets where People's Councils are not organized as follows:

I. GENERAL PROVISIONS:

1. Scope of application: This Circular provides for the preparation of budgets, implementation of budget estimates, and finalization of budgets for counties (districts) and communes where People's Councils are not organized.

2. Counties (districts) and communes in central cities and provinces piloting the non-organization of People's Councils continue to be decided by the Provincial People's Council on the allocation of revenue sources and expenditure responsibilities in accordance with the economic and social management hierarchy, national defense, and security management of the State and the administrative capacity of each level within their jurisdiction, as prescribed by the State Budget Law and guiding documents of the State Budget Law. In addition to the provisions of this Circular, counties (districts) and communes in central cities and provinces piloting the non-organization of People's Councils continue to implement provisions on the preparation of budgets, implementation of budget estimates, finalization, and public disclosure of budgets as prescribed by the State Budget Law and guiding documents of the State Budget Law.

II. SPECIFIC PROVISIONS:

1. Preparation, decision-making, allocation, and assignment of budget estimates:

a) For county (district) budgets: The County (District) Department of Finance and Planning collaborates with relevant agencies to prepare the state budget revenue estimate for the area; the county (district) budget revenue and expenditure estimate is reported to the County (District) People's Committee and sent to the Provincial Department of Finance for review and consolidation before being submitted to the Provincial People's Committee for decision by the Provincial People's Council. Within five days from the date of the Provincial People's Council's decision, the Provincial People's Committee is responsible for assigning the revenue and expenditure budget estimates to the counties (districts).

After receiving the decision on the assignment of revenue and expenditure tasks from the Provincial People's Committee, within ten days from the date of the Provincial People's Council's decision on the budget estimate and allocation, the County (District) People's Committee decides specifically on the state budget revenue estimate for the area; the local budget revenue and expenditure estimate; allocates the county (district) budget; assigns the revenue and expenditure budget estimates to units at the same level and to lower levels.

b) For commune budgets under districts: The commune finance officer prepares the state budget revenue estimate for the area; the commune budget revenue and expenditure estimate is reported to the Commune People's Committee and sent to the District Department of Finance for review and consolidation before being submitted to the District People's Committee for decision. After receiving the decision on the assignment of revenue and expenditure tasks from the District People's Committee, the Commune People's Committee allocates its commune budget estimate within ten days from the date of the District People's Committee's decision on the revenue and expenditure budget estimate.

c) For commune budgets under towns directly under provinces: The commune finance officer prepares the state budget revenue estimate for the area; the commune budget revenue and expenditure estimate is reported to the Commune People's Committee and sent to the Town Department of Finance for review and consolidation before being submitted to the Town People's Committee for decision by the Town People's Council. Within five days from the date of the Town People's Council's decision, the Town People's Committee is responsible for assigning the revenue and expenditure budget estimates to the communes. After receiving the decision on the assignment of the revenue and expenditure budget estimates from the Town People's Committee, the Commune People's Committee allocates the commune budget estimate within ten days from the date of the Town People's Council's decision on the revenue and expenditure budget estimate.

The County (District) and Commune People's Committees are responsible for reporting to the higher-level People's Committee and financial department the results of the allocation and assignment of local budget estimates within five days after the revenue and expenditure budget estimates and budget allocation plans have been decided by the competent authority.

If the budget estimates of the counties (districts) and communes are not consistent with the revenue and expenditure budget estimates decided by the competent authority, the higher-level financial department reports to the same-level People's Committee to request the lower-level People's Committee to adjust the revenue and expenditure budget estimates accordingly.

The Provincial People's Committee provides specific guidance on the content, requirements, and time frame for preparing the budget estimates of counties (districts) and communes where People's Councils are not organized, ensuring consistency with the requirements, content, and time frame for preparing the local budget estimates.

2. Implementation of budget estimates:

The County (District) and Commune People's Committees are responsible for implementing the assigned budget estimates. During the implementation of the budget estimates, if there are changes in revenue and expenditure:

a) In case there is a change in the district (city district), ward budget that requires adjustment, the ward's financial work officer reports to the People's Committee of the ward, the District Finance - Planning Office (city district) reports to the same-level People's Committee to decide on adjusting the district (city district), ward budget forecast; at the same time report to the higher-level finance authority to report to the competent authority that has decided on the annual budget forecast;

b) The increased revenue and reduced expenditure compared to the assigned forecast, after allocating sources for salary reform as prescribed, shall be used to increase investment development expenditure and increase budget reserves. The ward's financial work officer reports to the People's Committee of the ward, the District Finance - Planning Office (city district) reports to the same-level People's Committee to decide on the plan to use the increased revenue and reduced expenditure for each local expenditure task;

c) In case the revenue does not meet the forecasted amount, the competent authority decides, the ward's financial work officer reports to the People's Committee of the ward, the District Finance - Planning Office (city district) reports to the same-level People's Committee to adjust and reduce some expenditure items accordingly, while reporting to the higher-level finance authority to report to the competent authority that has decided on the annual budget forecast;

3. Budget settlement:

a) For the ward budget: The ward's financial work officer prepares the budget revenue and expenditure settlement report, which is reported to the People's Committee of the ward for approval, then sent to the District Finance - Planning Office (city district) for review and consolidation, and reported to the People's Committee of the city district (city under province) for approval; for wards under a township (city under province), it is sent to the Township Finance - Planning Office (city under province) for review and consolidation, and reported to the People's Committee of the township (city under province) for submission to the same-level People's Council for ratification;

b) For the district (city district) budget: The District Finance - Planning Office (city district) prepares the report on the settlement of state budget revenue in the district (city district) and the settlement of district (city district) budget revenue and expenditure, which is reported to the People's Committee of the district (city district) for approval, then sent to the Department of Finance for review and consolidation, and reported to the Provincial People's Committee for submission to the same-level People's Council for ratification;

c) Based on the decision approving the budget settlement of the People's Committee of the district (city district), ward, in case there is a surplus in the budget, the District Finance - Planning Office (city district), People's Committee of the ward shall issue a document to the State Treasury where transactions are conducted to process the accounting transfer into the next year's budget revenue according to the prescribed regulations;

d) The provincial People's Committee shall specify the time for submitting the budget settlement report for budgetary units under the local budget and budgets at various levels in the locality to ensure the deadline for submitting the local budget settlement report as prescribed;

4. Documents for presenting the budget forecast and settlement, and budget allocation indicators for districts (city districts), wards where the People's Council is not organized, shall be implemented in accordance with the provisions of the State Budget Law and guiding documents of the State Budget Law;

III. IMPLEMENTATION

1. This Circular takes effect from April 1, 2009;

2. During implementation, if there are difficulties, please promptly reflect them to the Ministry of Finance for study and supplementary guidance./.