Circular No. 67/2000/TT-BTC guiding additional and amended budget classification system

CIRCULAR

Guidelines for supplementing and amending the State Budget Classification System

The Ministry of Finance has issued the State Budget Classification System pursuant to Decision No. 280 TC/QĐ/NSNN dated April 15, 1997, and supplementary and amending Circulars No. 156/1998/TT-BTC dated December 12, 1998, and No. 60/1999/TT-BTC dated June 1, 1999. To date, the Government has issued many new decisions related to the organization of state agencies and the revenue and expenditure system of the State Budget. In order to meet management requirements and budget execution according to the new Government decisions and to align with current realities, the Ministry of Finance provides guidelines, supplements, and amends certain Chapters, Types, Clauses, Sections, and Subsections of the existing State Budget Classification as follows:

A. REGARDING CHAPTERS:

1. Supplement Chapter 145A "Development Support Fund" to account for expenditures from the State Budget allocated to the Development Support Fund in accordance with Government decisions and competent state agencies.

2. Replace the guidance content at the first bullet point (revenues of units under provincial management...) in Point 7, Part I of Circular No. 444 TC/NSNN dated December 18, 1998, on "guidelines for supplementing and amending the accounting of revenues and expenditures of the State Budget according to the State Budget Classification System" as follows: Table of Contents of the State BudgetRevenues and expenditures of the State Budget of central state-owned enterprises, local state-owned enterprises, foreign-invested enterprises, and non-state-owned enterprises under the management of other provinces shall be accounted for as follows:

The revenues and expenditures of state budget of central state-owned enterprises, local state-owned enterprises, foreign-invested enterprises, and non-state-owned enterprises under the management of other provinces shall be recorded:

2.1. Account under the corresponding Chapter of the parent company if the unit is a branch or subsidiary of central state-owned enterprises or local state-owned enterprises.

For ease of monitoring, evaluation, and data conversion, revenues of state-owned enterprises' branches and subsidiaries managed by central or local state-owned enterprises will continue to be accounted for under Chapter 160B until December 31, 2000. From January 1, 2001, they shall be accounted for under the corresponding Chapter of the parent company.

2.2. In the corresponding Chapter of the enterprise type if the unit is a branch or subsidiary of foreign-invested enterprises and non-state-owned enterprises.

2.2. Account under the corresponding Chapter of the enterprise type if the unit is a branch or subsidiary of foreign-invested enterprises or non-state-owned enterprises.

3.1. Chapter 152A "Economic Units Established on the Basis of Joint Ventures with Foreign Investment": provisions for recording the revenues and expenditures of the state budget of economic units established based on joint ventures and business cooperation contracts between foreign organizations and individuals and Vietnamese organizations and individuals in accordance with the Law on Foreign Investment and approved by the Ministry of Planning and Investment.

3. Rename Chapter 152(A, B) "Joint Ventures with Foreign Capital" to "Foreign-Invested Joint Ventures":

4. Chapter 154 (B, C, D) "Non-State-Owned Mixed Economy": provisions for recording the revenues and expenditures of the state budget of economic units established based on joint ventures among organizations and individuals belonging to the non-state-owned economy sector. Such units shall be recorded in the corresponding Chapter (B, C, D) according to their level of management.

3.1. Chapter 152A "Foreign-Invested Joint Ventures": provisions for accounting revenues and expenditures of the State Budget of economic entities established based on joint ventures or cooperation contracts between foreign organizations and individuals and Vietnamese organizations and individuals in accordance with the Law on Foreign Investment and approved by the Ministry of Planning and Investment.

B. REGARDING TYPE - ARTICLE:

3.2. Chapter 152B "Foreign-Invested Joint Ventures": provisions for accounting revenues and expenditures of the State Budget of economic entities established based on joint ventures or cooperation contracts between foreign organizations and individuals and Vietnamese organizations and individuals in accordance with the Law on Foreign Investment and approved by the Department of Planning and Investment or Industrial Park Management Board.

- Rename Article 12 "Program for Exploitation and Utilization of Degraded Land, Alluvial Land, Coastal Land, and Riverbank Land" to "Program for Exploitation and Utilization of Degraded Land, Alluvial Land, Coastal Land, Riverbank Land, and Surface Water in Delta Areas".

4. Chapter 154(B, C, D) "Non-State-Owned Mixed Economy": provisions for accounting revenues and expenditures of the State Budget of economic entities established based on joint ventures between organizations and individuals belonging to the non-state-owned economy sector. Such entities shall be accounted for under the corresponding Chapter (B, C, D).

- Article 02 "Reserve of Materials, Equipment, Goods, and Preservation Services": amend the phrase "salt reserve of the Ministry of Trade" to "salt reserve of the Ministry of Agriculture and Rural Development".

5. Chapter 158(A, B, C) "State-Participated Mixed Economy": provisions for accounting revenues and expenditures of the State Budget of economic entities established based on joint ventures between state-owned economic entities and non-state-owned economic entities. Such entities shall be accounted for under the corresponding Chapter (A, B, C).

3. Type 10:

B. REGARDING TYPES AND CLAUSES:

1. Type 01:

- Rename Clause 12 "Program for Exploitation and Utilization of Degraded Land, Alluvial Land, Coastal and Riverbank Areas" to "Program for Exploitation and Utilization of Degraded Land, Alluvial Land, Coastal and Riverbank Areas, and Surface Water in Delta Regions".

+ Add Article 19 "Objective to Strengthen Material Foundations of General Education Schools".

2. Type 07:

- Clause 02 "Reserve of Materials, Equipment, Goods, and Preservation Services". Amend the phrase "salt reserve of the Ministry of Trade" to "salt reserve of the Ministry of Agriculture and Rural Development".

Starting from 2001, include the costs of activities and preservation services of the Government Cryptographic Agency.

The expenditures previously recorded under Article 17 shall be analyzed and transferred to the newly added Articles.

3. Type 10:

- Clause 03 "Financial Intermediary Activities". Amend the note section to change the phrase "National Investment Support Fund" to "Development Support Fund".

- Rename Article 08 "Concentrated Social Activities" to "Implementation of Policies for Revolutionary Meritorious Persons".

4. Type 14 "Education and Training":

- Remove Clause 17 "Target Strengthening School Infrastructure and Equipment" and add the following clauses to account for expenditures aimed at strengthening school infrastructure and equipment:

To reflect the activities implementing policies for social groups (elderly without support, orphaned children, disabled individuals, vagrants, social delinquents, etc.), including: expenditures on food allowances and living expenses for these groups, expenditures on operations of units caring for concentrated groups.

5.2. Delete Clause 10 "Other social activities."

The expenditures accounted for under the old Clause 10 shall be analyzed and transferred to account under the revised Clause 08.

5.3. Rename Clause 17 "Target for enhancing hospital equipment" to "Target for upgrading medical equipment."

5.4. Delete Clause 07 "Child welfare program" and supplement additional Clauses to account for expenditures on child welfare programs as follows:

- Supplement Clause 28 "Target for caring for children in particularly difficult circumstances."

- Supplement Clause 29 "Target for protecting children in particularly difficult circumstances and building models."

- Supplement Clause 30 "Target for communication and supervision of child welfare programs."

Expenditures previously accounted for under Clause 07 shall be analyzed and transferred to account under the newly supplemented Clauses.

5.5. Delete Clause 22 "National Program to Eradicate Poverty and Reduce Hunger during the period 1998-2000" and supplement additional Clauses to account for expenditures on each project of the national poverty eradication and hunger reduction program as follows:

- Supplement Clause 31 "Project for investment in infrastructure construction in particularly difficult communes."

- Supplement Clause 32 "Credit Project for the Poor."

- Supplement Clause 33 "Production Support and Industry Development Project."

- Supplement Clause 34 "Guidance Project for the Poor on Business Practices and Agricultural Extension."

- Supplement Clause 35 "Training Project for Staff Supporting Poverty Eradication and Hunger Reduction and Poor Commune Staff."

- Supplement Clause 36 "Settlement and Resettlement Project."

- Supplement Clause 37 "New Economic Zone Project."

- Supplement Clause 38 "Arrangement and Stabilization Project for Self-Migrated People."

- Supplement Clause 39 "Support Project for Particularly Difficult Ethnic Minorities."

- Supplement Clause 40 "Program for Building Central Commune Villages in Mountainous Areas and Highlands."

Expenditures previously accounted for under Clause 22 shall be analyzed and transferred to account under the newly supplemented Clauses (Clause 09 "Activities for Settlement and New Economic Zones" remains unchanged to account for expenditures on management activities for settlement and new economic zones funded by economic public services).

5.6. Supplement Clause 41 "Target for Ensuring Quality and Food Safety."

5.7. Supplement Clause 42 "National Nutrition Action Plan."

6. Type 16 "Cultural and Sports Activities."

- Supplement Clause 22 "Target for Investigating, Collecting, and Developing Intangible Cultural Heritage."

C. REGARDING THE ITEMS AND SUBITEMS:

1. Rename Item 026 "Additional Fees" to "Revenue from Export and Import Price Differences and Additional Fees."

1.1. Rename the following Subitems:

- Rename Subitem 01 "Stabilization Fund" to "Revenue from Export and Import Price Differences."

- Rename Subitem 02 "Telephone Installation Fee" to "Additional Fee for Telephone Installation."

- Rename Subitem 03 "Electricity Sales Price" to "Additional Fee for Electricity Sales."

- Rename Subitem 04 "Water Sales Price" to "Additional Fee for Water Sales."

- Rename Subitem 08 "Additional Fee for PVC Products" to "Additional Fee for PVC Product Sales Price."

1.2. Delete the following Subitems:

- Delete Subitem 05 "Additional Fee for Fuel Oil."

- Delete Subitem 06 "Additional Fee for Fertilizers."

- Delete Subitem 07 "Additional Fee for Coffee."

Revenue previously accounted for under the old Subitems (05, 06, and 07) shall be transferred to account under the revised Subitem 01.

2. Item 027 "Revenue from Crude Oil."

- Rename Subitem 02 "Income Tax" to "Corporate Income Tax."

3. Item 030 - Subitem (01,02,03), Item 077 - Subitem (01,02,03) and Item 151 - Subitem (01,02,03) change the phrase "...investment development system..." to "...development support fund..."

4. Item 046 "Administrative Fees," rename and supplement the following Subitems:

4.1. Rename Subitem 01 "Quota Issuance Fee" to "Fee for Issuing Export and Import Quotas."

4.2. Rename Subitem 03 "Fee for Issuing Operating Licenses for Foreign Representative Offices in Vietnam" to "Fee for Establishing and Operating Foreign Representative Offices and Economic Organizations in Vietnam and Opening Branches of Foreign Companies in Vietnam."

46 ||| 4.3. Supplement Subitem 12 "Fee for Issuing Origin Certificates for Goods."

5. Item 051 "Penalty Revenue", rename the following Sub-items:

5. Item 051 "Penalty Revenue," rename the following Subitems:

- Rename Subitem 03 "Administrative Fine for Violations in the Customs Sector" to "Administrative Fine for Tax Violations Implemented by the Customs Sector."

- Rename Subitem 04 "Administrative Fine for Tax Violations" to "Administrative Fine for Tax Violations Implemented by the Tax Sector."

6. Item 052 "Revenue from Confiscation."

Supplement Subitem 08 "Confiscation from Anti-Smuggling Operations Conducted by the Forest Protection Service."

7. Item 054 "Contributions."

Supplement Subitem 07 "Revenue from Export Support Fund Contributions by Export and Import Enterprises."

8. Item 055 "Supplementary Revenue from Higher Level Budgets," rename and supplement the following Subitems:

- Rename Subitem 02 "Targeted Supplementary Revenue from Domestic Funds" to "Targeted Supplementary Revenue from Domestic Funds."

- Supplement Subitem 03 "Targeted Supplementary Revenue from Foreign Borrowings."

- Supplement Subitem 04 "Targeted Supplementary Revenue from Non-Repayable Aid."

- Supplement Subitem 05 "Revenue for National Programs and Projects."

Revenue previously accounted for under the old Subitem 02 shall be analyzed and transferred to account under the newly supplemented and modified Subitems.

9. Item 056 "Revenue from Lower Level Budgets."

Supplement Subitem 01 "Revenue from Lower Level Budgets" to account for revenue received by higher level budgets from lower level budgets.

Higher level budgets receiving temporary advances from lower level budgets shall not be accounted for under this Item but shall reduce expenditure under Item 913 "Temporary Advances to Lower Level Budgets" (portion of provisional budget not included in budget balance).

10. Item 062 "Other Revenue."

11. Section 086 "Loans for Development Investment," shall be supplemented with the following sub-items:

- Supplement Sub-item 04 "Government Bonds Issued Through State Treasury."

- Supplement Sub-item 05 "State Bank Loans Pursuant to Government Orders."

- Supplement Sub-item 06 "Loans from Funds Outside the Budget."

- Supplement Sub-item 07 "Loans from Enterprises."

- Supplement Sub-item 08 "Private Loans."

- Supplement Sub-item 10 "Loans Pursuant to Clause 3 of Article 8 of the State Budget Law."

- Supplement Sub-item 11 "Stock Market Loans."

12. Rename Section 122 "Social Work Expenditure" to "Expenditure on Revolutionary Meritorious Persons and Social Work." Rename and further explain the expenditure of the sub-items under Section 122 as follows:

- Sub-item 01 "Monthly Allowance"

Reflects monthly expenditures according to prescribed standards paid to individuals entitled to regular preferential allowances.

- Sub-item 02 "One-time Allowance"

Reflects one-time expenditures according to regulations paid to individuals entitled to one-time preferential allowances: backdated allowances, initial allowances, funeral allowances, memorial allowances, burial fees...

- Rename Sub-item 03 "Transportation and Medical Examination" to "Other Preferential Benefits for War Invalids and Veterans"

Reflects special expenditures according to regulations for war invalids, veterans, and those treated similarly to war invalids: transportation costs, medical examinations, medical assessment fees, special equipment, special treatment drugs, support for severely disabled war invalids to rest at home.

- Sub-item 04 "Prosthetic Devices"

Reflects expenditures for the provision of prosthetic devices for functional recovery for war invalids and those treated similarly to war invalids: artificial limbs, artificial eyes, tinted glasses, hearing aids, wheelchairs, crutches...

- Rename Sub-item 05 "Health Insurance for Policy Beneficiaries, War Invalids, and Social Groups" to "Health Insurance for Policy Beneficiaries"

Reflects expenditures for purchasing health insurance cards for policy beneficiaries: revolutionary contributors, social groups, the poor.

- Rename Sub-item 06 "Living Expenses for Social Welfare Camp Residents" to "Allowances for Social Welfare Camp Residents"

Reflects monthly allowances and living expenses for social welfare residents according to prescribed regulations.

- Rename Sub-item 07 "Costs for Collecting Graves" to "Graveyard and Martyrs' Tomb Operations Costs"

Reflects expenditures for collecting, exhuming, building tombs, surveying, searching for martyrs' remains, visiting martyrs' graves, constructing and repairing graveyards, memorials, name plaques, management costs... (excluding graveyards already included in the centralized construction investment budget).

- Rename Sub-item 08 "Repair and Upgrade of Graveyards and Memorials" to "Support for Activities of Centralized Care Institutions for War Invalids and Intermittent Rehabilitation Centers for Revolutionary Contributors, Social Centers"

Reflects state budget expenditures for centralized care institutions for war invalids, intermittent rehabilitation centers for revolutionary contributors, and concentrated social groups including: payment for public services, office supplies, communication costs, rental and purchase expenses, repair and maintenance of tools and equipment serving war invalids and veterans, professional expenses, medical supplies, and other expenses according to prescribed regulations.

Expenditures previously recorded under the old Sub-item 08 will be transferred to the newly modified Sub-item 07.

- Rename Sub-item 09 "Building Homes of Benevolence" to "Housing Support for Preferential Beneficiaries"

Reflects expenditures for housing support, building, and repairing homes of benevolence for preferential beneficiaries: mothers of heroic Vietnam, revolutionary elders, war invalids, seriously ill veterans.

- Sub-item 10 "Gift and Festival Expenditures for Policy Beneficiaries"

Reflects expenditures for gifts and additional food expenses during festivals for policy beneficiaries according to prescribed regulations.

- Sub-item 11 "Expenditures for Books and Newspapers for Revolutionary Elders"

Reflects expenditures for purchasing daily newspapers for revolutionary elders according to prescribed regulations.

- Rename Sub-item 12 "Service Fees" to "Management Expenditures"

Reflects expenditures for business management fees from central funds allocated to localities, including: printing forms and documents for managing policy beneficiaries; purchasing office supplies, minor repairs and purchases of management assets; training meetings; remuneration for staff, allowance payments at commune level.

- Sub-item 13 "Educational Allowances for Policy Beneficiaries"

Reflects expenditures for educational allowances for war invalids, veterans, those treated similarly to war invalids, and their children, children of martyrs according to prescribed regulations.

- Sub-item 14 "Treatment and Rehabilitation"

Reflects expenditures according to bed treatment and rehabilitation regulations for revolutionary contributors (including food and drug costs and other expenses).

13. Section 125 "Supplementary Expenditures for Lower-level Budgets," shall be renamed and supplemented with the following sub-items:

- Rename Sub-item 02 "Targeted Supplementary Expenditures" to "Targeted Supplementary Expenditures from Domestic Sources."

- Supplement Sub-item 03 "Targeted Supplementary Expenditures from Foreign Borrowings."

- Supplement Sub-item 04 "Targeted Supplementary Expenditures from Non-Repayable Aid."

- Supplement Sub-item 05 "Supplementary Expenditures for National Programs and Projects."

Expenditures previously recorded under the old Sub-item 02 will be analyzed and transferred to the newly supplemented and modified sub-items.

14. Rename Section 126 "Expenditures from Additional Revenue" to "Export Support Fund and Additional Revenue Expenditures."

14.1. Rename Sub-item 01 "Stabilization Fund Expenditures" to "Export Support Fund."

14.2. Supplement the following sub-items:

- Supplement Sub-item 04 "Expenditures from Water Sales Additional Revenue."

- Supplement Sub-item 08 "Expenditures from Plastic Product (PVC) Sales Additional Revenue."

15. Section 127 "Aid Expenditures."

15.1. Rename the following sub-items:

- Rename Sub-item 01 "Laos (C)" to "Laos (C) Student Training Expenditures."

- Rename Sub-item 02 "Cambodia (K)" to "Cambodia (K) Student Training Expenditures."

15.2. Supplement the following sub-items:

- Supplement Sub-item 03 "Laos (C) Cooperation Support Expenditures."

- Add Subitem 04 "Expenditure for cooperation with Cambodia (K)".

- Add Subitem 05 "Expenditure for Laos assistance projects (C)".

- Add Subitem 06 "Expenditure for Cambodia assistance projects (K)".

The expenditures previously recorded under the old Subitem 01 shall be analyzed and transferred to be recorded under the new Subitems (01, 03, and 05), and the expenditures previously recorded under the old Subitem 02 shall be analyzed and transferred to be recorded under the new Subitems (02, 04, and 06) that have been added and amended.

16. Section 133 "Expenditure for payment to higher-level budget".

Add Subitem 01 "Expenditure for payment to higher-level budget" to record the expenditure of lower-level budgets paid back to higher-level budgets regarding the revenue of higher-level budgets enjoyed.

Lower-level budgets repay higher-level budgets for temporary advances which are not recorded in this Section but recorded as a reduction in revenue from borrowing from higher-level budgets in Section 809 "Borrowing from higher-level budgets" (part of provisional receipts not included in the state budget balance).

17. Section 134 "Other Expenditures".

17.1. Rename Subitem 06 "Reward for persons who discover and report violations of laws" to "Expenditure for rewards and costs to handle violations of laws in cases without sufficient income or insufficient income to cover expenses".

17.2. Add Subitem 07 "Expenditure for transferring funds from the previous year's budget to the next year's budget".

18. Section 135 "Interest Payment on Domestic Borrowings".

- Add Subitem 10 "in accordance with Clause 3, Article 8 of the State Budget Law".

- Supplement Sub-item 11 "Stock Market Loans."

19. Section 141 "Capital Support for State Enterprises", add the following Subitems:

- Add Subitem 04 "Interest Rate Subsidy Support".

- Add Subitem 05 "Capital Support for Interest Rate Subsidy After Investment".

20. Section 149 "Other Expenses".

Add Subitem 10 "Expenses for project appraisal, technical design, total budget estimate, and final account settlement".

21. Section 153 "Support for Funds", change and add the following Subitems:

21.1. Rename Subitem 01 "National Investment Support Fund" to "Capital Contribution to Development Support Fund".

21.2. Add the following Subitems:

- Add Subitem 03 "Compensation for Interest Rate Differential of the Development Support Fund".

- Add Subitem 04 "Interest Rate Subsidy Support After Investment for the Development Support Fund".

- Add Subitem 05 "Additional Capital for the Guarantee Fund of the Development Support Fund".

- Add Subitem 06 "Additional Capital for the Risk Fund of the Development Support Fund".

- Add Subitem 07 "Operating Expense Support for the Development Support Fund".

- Add Subitem 08 "Other Support for the Development Support Fund".

22. Section 158 "Principal Repayment on Investment Loan".

- Add Subitem 10 "in accordance with Clause 3, Article 8 of the State Budget Law".

- Supplement Sub-item 11 "Stock Market Loans."

23. Change the code number of Subitem 15 in all Revenue Sections and Expenditure Sections of the current State Budget Structure and in the newly added Subitem 15 in this Circular to Subitem 99, and Subitem 99 shall only record the revenue and expenditure items of that Section, but not specifically named Subitems.

D. PROVISIONAL RECEIPTS AND EXPENDITURES NOT YET INCORPORATED INTO THE STATE BUDGET BALANCE:

1. Add Section 808 "Borrowing from Accumulated Reserve Fund for Debt Repayment".

2. Add Section 809 "Borrowing from Higher-Level Budgets".

3. Rename Section 902 "Advance for Basic Construction through the Development Investment System" to "Advance for Basic Construction through the National Treasury".

4. Add Section 908 "Advance for Debt Repayment to the Accumulated Reserve Fund for Debt Repayment".

5. Add Section 913 "Advance to Lower-Level Budgets".

This Circular takes effect from January 1, 2000. The revenue and expenditure of the state budget from January 1, 2000, according to the current Chapters, Types, Clauses, Sections, and Subitems shall be analyzed and transferred to be recorded according to the Chapters, Types, Clauses, Sections, and Subitems supplemented and amended in this Circular. All previous regulations contrary to this Circular are abolished. In the course of implementation, if there are any difficulties, units are requested to send letters to the Ministry of Finance for study and timely revision.