Circular No. 97/2021/TT-BTC Amending and Supplementing Certain Articles of Circular No. 23/2020/TT-BTC dated April 13, 2020, of the Minister of Finance on Advance Payments and Borrowing from State Treasury of the State Budget

CIRCULAR

Amending and supplementing certain provisions of Circular No. 23/2020/TT-BTC

dated April 13, 2020, issued by the Minister of Finance on advance payments and borrowing from the state treasury of the state budget

borrowing from the state treasury of the state budget

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

Pursuant to the Law on Public Debt Management dated November 23, 2017;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government stipulating the regime for managing the state treasury;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the General Director of the State Treasury;

The Minister of Finance issues this Circular amending and supplementing certain provisions of Circular No. 23/2020/TT-BTC dated April 13, 2020, issued by the Minister of Finance on advance payments and borrowing from the state treasury of the state budget.

Article 1. Amending and supplementing certain provisions of Circular No. 23/2020/TT-BTC dated April 13, 2020, issued by the Minister of Finance on advance payments and borrowing from the state treasury of the state budget (hereinafter referred to as Circular No. 23/2020/TT-BTC) as follows:

1. Amending and supplementing Clause 1 and Clause 2 of Article 16 as follows:

"1. Costs of using the state treasury

The central budget when making advance payments and borrowing from the state treasury and the provincial budget when making advance payments from the state treasury shall be responsible for paying the costs of using the state treasury to the State Treasury on a monthly basis (no later than the 10th day of the following month) at a rate equal to the interest rate applied to deposits in Vietnamese dong of the State Treasury at the State Bank of Vietnam as decided by the Governor of the State Bank of Vietnam during the same period. Specifically, the costs of using the state treasury for the month when the advance payment or borrowing from the state treasury is due for repayment shall be paid to the State Treasury simultaneously with the repayment of the advance payment or borrowing from the state treasury. Monthly costs of using the state treasury are calculated as follows:

Costs of using the state treasury = Σ(Actual outstanding balance of advance payments and borrowing from the state treasury x Actual number of days maintaining the outstanding balance x Rate of costs of using the state treasury)/365

Where:

a) The actual outstanding balance of advance payments and borrowing from the state treasury is determined at the end of each day within the period for calculating the costs of using the state treasury.

The period for calculating the costs of using the state treasury is monthly, starting from the withdrawal date for the first period of calculating the costs of using the state treasury or the first day of the month for subsequent periods until the last day of the month for calculating the costs of using the state treasury or the day immediately preceding the repayment date for the advance payment or borrowing from the state treasury for the final period of calculating the costs of using the state treasury.

b) The actual number of days maintaining the outstanding balance (including holidays and public holidays as prescribed by law) is the number of days that the actual outstanding balance of advance payments and borrowing from the state treasury at the end of each day remains unchanged within the period for calculating the costs of using the state treasury as specified in point a of this clause.

c) The rate of costs of using the state treasury is equal to the interest rate applied to deposits in Vietnamese dong of the State Treasury at the State Bank of Vietnam as decided by the Governor of the State Bank of Vietnam during the same period. In case the Governor of the State Bank of Vietnam issues a decision to adjust the interest rate applied to deposits in Vietnamese dong of the State Treasury at the State Bank of Vietnam, the new interest rate shall be applied from the effective date of such interest rate.

2. Overdue costs of using the state treasury

In case the advance payment or borrowing from the state treasury of the central budget, or the advance payment from the state treasury of the provincial budget exceeds the repayment deadline, the central budget and the provincial budget shall be responsible for paying the overdue costs of using the state treasury at a rate of 150% of the costs of using the state treasury as stipulated in point c of Clause 1 of this Article, applicable on the day immediately preceding the period for calculating the overdue costs of using the state treasury. The overdue costs of using the state treasury shall be paid once to the State Treasury upon recovery of the overdue advance payment or borrowing from the state treasury and shall be calculated as follows:

Where:

a) The actual outstanding balance of overdue advance payments and borrowing from the state treasury is determined at the end of each day within the period for calculating the overdue costs of using the state treasury.

The period for calculating the overdue costs of using the state treasury starts from the due repayment date when the advance payment or borrowing from the state treasury has not been repaid until the day immediately preceding the actual repayment date of the overdue advance payment or borrowing from the state treasury.

b) The actual number of days maintaining the overdue outstanding balance (including holidays and public holidays as prescribed by law) is the number of days that the actual outstanding balance of overdue advance payments and borrowing from the state treasury at the end of each day remains unchanged within the period for calculating the overdue costs of using the state treasury as specified in point a of this clause.

c) The rate of costs of using the state treasury is the interest rate as stipulated in point c of Clause 1 of this Article applicable on the day immediately preceding the period for calculating the overdue costs of using the state treasury."

2. Supplementing point d to Clause 5 of Article 19 as follows:

"d) Notify the Department of State Budget, Provincial Department of Finance, and the State Treasury of the province about the level and timing of adjustment of the costs of using the state treasury no later than five working days from the date of receipt of the Governor's decision on the interest rate applied to deposits in Vietnamese dong of the State Treasury at the State Bank of Vietnam."

Article 2. Transitional Provisions

1. The outstanding balance of advance payments and borrowing from the state treasury of the state budget as of the date this Circular takes effect shall apply the costs of using the state treasury and overdue costs of using the state treasury (if any) as prescribed in this Circular from the date this Circular takes effect.

2. Advance payments and loans from the state budget that were approved before this Circular takes effect but are withdrawn after it becomes effective shall be subject to the applicable costs for using the state budget and overdue state budget usage fees (if any), as stipulated in this Circular.

Article 3. Effectiveness and Implementation

1. This Circular takes effect from January 1, 2022.

2. The State Treasury and relevant agencies, units, organizations, and individuals shall be responsible for implementing this Circular./.