Circular No. 99/2001/TT-BTC guides the prioritization of funds for the application and development of information technology.

CIRCULAR

Guidelines for Prioritizing Budget Funds for the Application and Development of Information Technology

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Implementing Decision No. 81/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister approving the Action Program to implement Directive No. 58 CT/TW of the Politburo on accelerating the application and development of information technology in the industrialization and modernization process from 2001 to 2005.

The Ministry of Finance provides guidelines for prioritizing budget allocation for the application and development of information technology by ministries, sectors, and localities as follows:

I - GENERAL PROVISIONS

- Ministries, sectors, and localities have the responsibility to create favorable conditions and prioritize budget allocation for subordinate units to implement the application and development of information technology (IT) in accordance with Directive No. 58 CT/TW of the Politburo on accelerating the application and development of IT to serve the cause of industrialization and modernization; Decision No. 81/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister approving the Action Program to implement Directive No. 58 CT/TW of the Politburo on accelerating the application and development of IT in the industrialization and modernization process from 2001 to 2005.

- Units using state budget funds shall annually base their budget allocation on the planned indicators and budget estimates assigned by the supervising authority, and proactively prioritize budget allocation to complete the plan for applying and developing IT within their units.

- The application and development of IT at units must ensure principles of economy, effectiveness, practical service for enhancing productivity and quality of specialized work, aligning with the IT application and development plan until 2005 of the ministry, sector, and locality, and specific conditions of each unit.

- Budget funds for the application and development of IT are balanced into the annual budget estimate of ministries, sectors, and localities.

II- SPECIFIC PROVISIONS

1 - Building and implementing plans for the application and development of IT:

- Ministries, agencies equivalent to ministries, government agencies, People's Committees of provinces and centrally governed cities shall implement the construction of five-year and annual plans for the application and development of IT in accordance with Directive No. 58 CT/TW of the Politburo on accelerating the application and development of IT to serve the cause of industrialization and modernization; Decision No. 81/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister approving the Action Program to implement Directive No. 58 CT/TW of the Politburo on accelerating the application and development of IT in the industrialization and modernization process from 2001 to 2005; considering this as a priority component in the economic and social development plan of their units.

- Administrative and public service units shall base their five-year and annual plans for the application and development of IT on the plans of their respective ministries, sectors, and localities, and the specific circumstances of each unit, construct five-year and annual plans (including regular expenses and construction investment) for the application and development of IT within their units, and submit them to higher-level management authorities for approval.

In the five-year and annual plans for the application and development of IT of ministries, sectors, localities, and administrative and public service units, the budget estimates for each application and development content must be clearly explained, along with the annual implementation plan, and the investment objectives and expected benefits must be analyzed clearly.

2- Contents of expenditure for the application and development of IT:

- Expenditure for maintaining, repairing, and improving the efficiency and performance of IT systems (including purchasing hardware, software, infrastructure improvements, and other services).

- Expenditure for applying IT to specialized work (gradually converting paper-based information to electronic form; gradually forming and utilizing electronic data repositories; building electronic information systems to meet societal needs; improving management processes, enhancing productivity and quality of specialized work...).

- Expenditure for training staff on IT.

- Construction investment according to projects approved by competent authorities.

3- Financial Mechanism:

3.1- Preparing the budget estimate for the application and development of IT:

- Annually, units using state budget funds shall base their budget estimate for the application and development of IT on the approved IT application and development plan, incorporate it into the overall budget estimate of the unit according to the current state budget classification system, and submit it to the supervising authority.

- The state budget estimate of ministries, sectors, and localities submitted to the finance and planning and investment authorities must clearly explain the budget allocation for the application and development of IT according to the state budget classification system, and this portion of the budget is prioritized after the salary and salary-like allowances.

3.2- Allocation and assignment of annual state budget estimates:

- Regarding budget allocation: Primary budget units, based on the annual state budget estimates assigned by the competent authority, must prioritize budget allocation for the application and development of IT for subordinate units, ensuring that these units can fully implement the approved IT application and development plan and align with the progress of plan implementation. Financial authorities at all levels have the responsibility to coordinate and provide opinions with the supervising authorities at the same level in the allocation of budget funds for subordinate units, ensuring the principle of prioritizing budget funds for the application and development of IT after salaries, wages, allowances, and contributions related to salaries (social insurance, health insurance).

- Regarding budget allocation: Primary budget units have the responsibility to allocate the budget for expenditure on the application and development of information technology (IT) to subordinate units together with the overall budget for expenditure of their unit. In cases where primary budget units have not been able to allocate the overall budget for expenditure to subordinate units by January 25 each year, then such primary budget units must first allocate the budget for expenditure on the application and development of IT to subordinate units, ensuring that the budget for expenditure on the application and development of IT is allocated in January of each year, thereby creating conditions for units to proactively implement the application and development of IT from the beginning of the year.

3.3- Compliance with the budget:

- Units using state budget funds must ensure at least the minimum budget allocated for expenditure on the application and development of IT by the supervisory agency, while striving to save other expenses to accelerate investment progress for the application and development of IT within their own units.

- Expenditures for the application and development of IT shall be tendered in accordance with the guidelines set forth in Circular No. 121/2000/TT-BTC dated December 29, 2000 of the Ministry of Finance, if it involves purchasing materials and equipment; in cases of investment and construction, they shall be carried out in accordance with the current investment and construction management regulations of the Government and the guiding documents of relevant ministries.

- The use of state budget funds to purchase assets, materials, and equipment must be sourced from domestically produced goods, utilizing domestic IT products and services that have been recognized as meeting quality standards suitable for Vietnam's conditions, particularly for software and hardware products listed in the country's key industrial product catalog (except for types of assets, materials, and equipment that cannot currently be produced domestically) according to Directive No. 21/2001/CT-TTg dated September 11, 2001 of the Prime Minister.

Within the scope of the annual budget allocation and retained revenue sources, ministries, sectors, and localities should prioritize allocating a portion of funds for the application and development of IT, ensuring the implementation of IT application and development plans; guiding and directing subordinate units to effectively implement IT application and development plans, ensuring timely progress and high efficiency, serving practical professional tasks in the process of industrialization and modernization, gradually integrating with countries in the region and worldwide.

3.4- Management, distribution, and inspection of fund usage:

- Funds for implementing the application and development of IT shall be managed, distributed, and settled according to the provisions of the State Budget Law and current financial regulations. At the same time, financial agencies, supervisory agencies, and treasury departments at all levels have the responsibility to create favorable conditions and quickly implement necessary procedures to assist units in ensuring the progress of implementing IT application and development plans.

- Supervisory agencies shall cooperate with financial agencies at the same level to regularly inspect and monitor the implementation of IT application and development plans according to approved plans and the use of allocated budget funds.

- Unit heads are responsible for the implementation of IT application and development plans and the use of funds within their units.

4- Accounting and settlement:

- Regarding categories and items: Funds used for the application and development of IT shall be accounted for and settled in the corresponding source of funds, in accordance with the current national budget classification system.

- Regarding expense items: Based on actual expenditures for the application and development of IT, units shall settle expenditures in corresponding items as stipulated by the current national budget classification system.

- Funds for the application and development of IT shall be settled collectively in the unit's settlement in accordance with the current accounting regulations of the State.

III- IMPLEMENTATION PROVISIONS

This Circular takes effect 15 days from the date of signature and is implemented during the period from 2001 to 2005. During the implementation period, if there are difficulties, units, ministries, sectors, and localities are requested to report to the Ministry of Finance for research and appropriate amendments.