Circular No. 88/2008/TT-BTC guides the determination of needs, sources, and methods of expenditure to implement hardship allowances for cadres, civil servants, public officials, and armed forces personnel with low salaries and difficult living conditions, as well as adjustments to allowances for village cadres who retired in 2008.

CIRCULAR

Guidelines for determining needs, sources, and methods of implementing hardship allowances for cadres, civil servants, public officials, and armed forces personnel with low salaries and difficult living conditions and adjusting allowances for cadres who retired in 2008 Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance; Pursuant to Decision No. 127/2008/QĐ-TTg dated September 15, 2008 of the Prime Minister on hardship allowances for cadres, civil servants, public officials, and armed forces personnel with low salaries and difficult living conditions;

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Pursuant to Decree No. 101/2008/NĐ-CP dated September 12, 2008 of the Government adjusting pensions, social insurance benefits, and monthly allowances for retired village cadres;

The Ministry of Finance hereby guides the determination of needs, sources, and methods of disbursing funds to implement hardship allowances for cadres, civil servants, public officials, and armed forces personnel and adjust allowances for retired village cadres in 2008 as follows:

I. GENERAL PROVISIONS:

1. This Circular stipulates the determination of needs, sources, and methods of disbursing funds to implement hardship allowances under Decision No. 127/2008/QĐ-TTg for state agencies, state-owned institutions; units under the armed forces; Party organizations, political-social organizations, and occupational-political-social organizations, social organizations, social-occupational organizations, non-governmental organizations, projects, and international organizations based in Vietnam with cadres, civil servants, and public officials assigned by the State to work within the state budget and receiving salaries from the state budget according to the salary table prescribed by the State, and adjusting allowances for retired village cadres under Decision No. 130-CP dated June 20, 1975 of the Council of Ministers and Decision No. 111-HĐBT dated October 13, 1981 of the Council of Ministers (hereinafter referred to as retired village cadres) as prescribed in Decree No. 101/2008/NĐ-CP.

2. Based on the provisions of Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP, ministries, ministerial-level agencies, government agencies, and other central agencies (hereinafter referred to as ministries and central agencies) and provincial-level cities directly under the central government have the responsibility to organize, guide, and aggregate financial requirements and sources to implement hardship allowances and adjust allowances for retired village cadres of their agencies, units, and subordinate levels in accordance with specific provisions of this Circular.

3. Ministries and central agencies, People's Committees at all levels, budgetary units at all levels, and budget users have the responsibility to determine and allocate sources to implement hardship allowances and budget support (if any) to pay hardship allowances to cadres, civil servants, and public officials of their units and adjust allowances for retired village cadres in accordance with prescribed regulations and the provisions of this Circular.

4. The implementation, accounting, and settlement of funds for implementing hardship allowances and adjusting allowances for retired village cadres shall be carried out in accordance with prescribed regulations and specific provisions of this Circular.

II. SPECIFIC PROVISIONS:

1. Regarding the determination of financial needs for implementing hardship allowances as stipulated in Decision No. 127/2008/QĐ-TTg and adjusting allowances for retired village cadres as stipulated in Decree No. 101/2008/NĐ-CP in 2008:

a) Financial needs for implementing hardship allowances as stipulated in Decision No. 127/2008/QĐ-TTg are determined based on the number of individuals mentioned in Clause 2, Article 1 of Decision No. 127/2008/QĐ-TTg present as of October 1, 2008, and the allowance amount of VND 270,000/person.

The allowance of VND 270,000/person is paid according to the payroll period for three months (October, November, December 2008) and is not used to calculate contributions or benefits under social insurance and health insurance.

b) Financial needs for implementing adjusted allowances as stipulated in Decree No. 101/2008/NĐ-CP are determined based on the number of village, town, and township cadres who have retired and are present as of October 1, 2008, and the additional adjustment amount between Decree No. 101/2008/NĐ-CP and the amount prescribed in Decree No. 184/2007/NĐ-CP.

2. Regarding the determination of sources to ensure financial needs for implementing hardship allowances as stipulated in Decision No. 127/2008/QĐ-TTg and adjusting allowances for retired village cadres as stipulated in Decree No. 101/2008/NĐ-CP in 2008:

a) Ministries, central agencies, and provincial-level cities directly under the central government shall use the remaining funds from the salary reform fund specified in Circular No. 154/2007/TT-BTC dated December 18, 2007 of the Ministry of Finance, after ensuring the financial needs for implementing Decrees No. 166/2007/NĐ-CP and No. 184/2007/NĐ-CP in 2008 (if any), to ensure financial needs for implementing hardship allowances as stipulated in Decision No. 127/2008/QĐ-TTg and adjusting allowances for retired village cadres as stipulated in Decree No. 101/2008/NĐ-CP in the fourth quarter of 2008.

b) In cases where the source as stipulated in point a, Clause 2, Section II above is less than the financial needs for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2008 as stipulated in Clause 1, Section II of this Circular, the central budget will supplement the shortfall for ministries, central agencies, and provincial-level cities directly under the central government to ensure sufficient sources.

c) In cases where the sources as stipulated in point a, Clause 2, Section II above exceed the financial needs for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2008 as stipulated in Clause 1, Section II of this Circular, ministries, central agencies, and provincial-level cities directly under the central government shall self-fund the financial needs for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2008 as stipulated in Clause 1, Section II of this Circular; the remaining funds shall be transferred to 2009 to cover the increased salary system when the State continues to issue; these remaining funds shall not be used for other purposes.

b) In case the source as prescribed in point a, Clause 2, Section II above is less than the funding requirement to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2008 as stipulated in Clause 1, Section II of this Circular, the central budget will supplement the shortfall for the ministries, central agencies, and centrally governed cities and provinces to ensure sufficient resources for implementation.

c) In case the sources as prescribed in point a, Clause 2, Section II above exceed the funding requirement to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2008 as stipulated in Clause 1, Section II of this Circular, the ministries, central agencies, and centrally governed cities and provinces shall self-fund the implementation of Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2008 as stipulated in Clause 1, Section II of this Circular; the remaining funds will be transferred to the year 2009 for expenditure on implementing the new salary regime when the State continues to issue it; these remaining funds shall not be used for other purposes.

In special cases, where Ministries, central agencies, and provinces and centrally governed cities have remaining funds after ensuring the financial needs for salary reform according to the prescribed timeline, they shall report to the Ministry of Finance for consideration and resolution in accordance with the prescribed regulations.

d) The expenses for providing hardship allowances to personnel and workers of the various levels of the trade union system shall be paid from the 2% trade union revenue; these expenses shall not be included in the financial needs for providing hardship allowances of Ministries, central agencies, and provinces and centrally governed cities.

đ) The expenses for providing hardship allowances to the Vietnam Social Security System shall be guaranteed from the surplus growth interest as prescribed.

e) The expenses for providing hardship allowances to workers in agencies and units that have implemented cost allocation, where the decision allowing cost allocation by the competent authority has stipulated that during the allocation period, the unit must arrange within the allocated amount to ensure new policies and regulations (such as Tax agencies, Customs, State Treasury, Vietnam Television, etc.), such agencies and units must self-fund the hardship allowance expenses within the total allocated budget.

3. Regarding the reporting system on the financial needs and sources for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP:

Ministries, central agencies, and provinces and centrally governed cities are responsible for organizing, guiding, reviewing, and consolidating reports on the financial needs and sources for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in the fourth quarter of 2008, to be submitted to the Ministry of Finance no later than October 31, 2008 (including those Ministries, central agencies, and provinces and centrally governed cities that have sufficient sources to implement).

(Ministries and central agencies shall submit reports on needs and sources using attached forms 1 and 2; provinces and centrally governed cities shall submit reports on needs and sources using attached forms 3a, 3b, and 4).

4. Regarding the method of disbursing funds for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP:

a) For budget-funded entities with more financial resources than required to implement Decision No. 127/2008/QĐ-TTg, they may proactively use these resources to pay hardship allowances to cadres, civil servants, and public officials of their own entity in accordance with the prescribed regulations.

b) For Ministries, central agencies, provinces and centrally governed cities, and budget-funded entities with greater financial needs to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP than available resources, based on the reports from Ministries, central agencies, and provinces and centrally governed cities, the Ministry of Finance will review and notify additional funding to ensure that Ministries, central agencies, and provinces and centrally governed cities have sufficient resources to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP.

- Based on the reports from Ministries, central agencies, and provinces and centrally governed cities, the Ministry of Finance will review and notify additional funding to ensure that Ministries, central agencies, and provinces and centrally governed cities have sufficient resources to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP.

- On this basis, Ministries and central agencies will notify additional funding to subordinate budget-funded entities; local financial authorities at all levels will report to the People's Committees at the same level to notify additional funding to budgetary units under their jurisdiction and lower-level budgets to provide hardship allowances to cadres, civil servants, and public officials and additional allowances for retired village cadres in accordance with the prescribed regulations (after utilizing the source to provide allowances as prescribed but still lacking resources).

- Based on the aforementioned notification, local financial authorities at all levels will implement the budget adjustment to allocate and record it in the supplementary targeted budget for 2008.

- Level I budgetary units are responsible for allocating the aforementioned notification to subordinate budget-funded entities (after utilizing the source to provide allowances as prescribed but still lacking resources). Budget-funded entities will withdraw money from the State Treasury within the supplemented amount, while also proactively using retained income according to the regulation and saving 10% of regular expenditures (if available) to pay hardship allowances to cadres, civil servants, and public officials of their own entity in accordance with the prescribed regulations.

c) For Ministries, central agencies, and provinces and centrally governed cities with more financial resources than needed to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP:

- Ministries, central agencies, and provinces and centrally governed cities shall direct and guide subordinate budget-funded entities and local budgets with more financial resources than needed to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP to proactively use these resources to pay hardship allowances to cadres, civil servants, and public officials and additional allowances for retired village cadres in accordance with the prescribed regulations.

- Provinces and centrally governed cities shall proactively use resources to implement Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP as prescribed: increased local government revenue, saving 10% of regular expenditures (the portion retained centrally) to supplement the financial resources for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP for budgetary units at the same level and subordinate local budgets that lack implementation resources for Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP following the similar process outlined in paragraph b above.

d) While awaiting authorized supplementation of funds, budget-funded entities and village budgets may proactively use the 2008 budget allocation and retained income according to the regulations to promptly pay hardship allowances to cadres, civil servants, public officials, and armed forces personnel and additional allowances for retired village cadres.

In the case where the budget estimate for the year 2008 has been allocated, if the retained revenue under the existing regime does not ensure sufficient funds to pay hardship allowances to officials, civil servants, public employees, armed forces personnel, additional allowances to village cadres who have retired, and this affects the performance of tasks, then the ministries, central agencies, and provincial cities directly under the central government shall report to the Ministry of Finance for consideration and resolution.

d) The resources for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP that have not been fully utilized shall be carried over to the following year to continue funding salary reform, and the remaining funds shall not be used for other purposes.

e) Accounting and settlement: The accounting and settlement of funds for paying hardship allowances to officials, civil servants, public employees, and armed forces personnel, and additional allowances to village cadres who have retired shall be conducted in accordance with the provisions of the State Budget Law and current legal documents.

The funds for paying hardship allowances according to Decision No. 127/2008/QĐ-TTg in 2008 shall be recorded in Item 108, Sub-item 99. The funds for paying hardship allowances according to Decision No. 127/2008/QĐ-TTg in 2009 shall be recorded in Item 6400, Sub-item 6449.

The funds for paying additional allowances to village cadres who have retired according to Decree No. 101/2008/NĐ-CP in 2008 shall be recorded in Item 122, Sub-item 01. The funds for paying additional allowances to village cadres who have retired according to Decree No. 101/2008/NĐ-CP in 2008 shall be recorded in Item 7150, Sub-item 7151.

III. IMPLEMENTATION:

1. Based on the provisions of this Circular, the ministries, central agencies, and People's Committees of provinces and centrally-administered cities shall be responsible for organizing and guiding agencies, units, and subordinate levels to determine the needs and sources of funds for implementing Decision No. 127/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2008.

Depending on the specific situation of their own agencies and localities and the provisions of this Circular, the heads of ministries, central agencies, and People's Committees of provinces and centrally-administered cities shall stipulate the time frame and reporting forms for units and subordinate budgets in accordance with the regulations on consolidation and reporting to the Ministry of Finance as set out in this Circular.

2. This Circular shall take effect fifteen days from the date of publication in the Official Gazette. Any difficulties encountered during implementation should be reported to the Ministry of Finance for prompt resolution./.