What are management, disbursement and final accounting of stage budget advances in the outyear in Vietnam?

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Question date: 28/11/2022

What are management and disbursement of stage budget advances in the outyear in Vietnam? What are recovery and final accounting of stage budget advances in the outyear in Vietnam?

Please advise. Thankyou.

    • What are management, disbursement and final accounting of stage budget advances in the outyear in Vietnam?
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    • 1. What are management and disbursement of stage budget advances in the outyear in Vietnam?

      In Clause 1, Clause 2, Clause 3, Clause 4, Clause 5, Article 12 of Decree 99/2021/ND-CP stipulates as follows:

      1. Advance on the outyear’s state budget funding shall be subject to the regulations of the Law on State Budget, the Law on Public Investment and the Government’s regulations on advance on the outyear's state budget funding.

      2. Managing agencies shall allocate advance on the outyear’s state budget funding to mandates or projects on the permissible investment portfolios and at the amounts authorized by competent authorities. The process for checking the apportionment, prepaid payment and settlement of the advance on the outyear’s state budget funding shall be carried out in the same manner as state budget investments authorized by competent authorities according to the budgetary year’s budget.

      3. Ministries, central authorities, financial authorities at all levels and regulatory payment bodies (State Treasury) shall enter and confirm the advance on the outyear’s state budget funding on Tabmis under their delegated authority and according to regulations currently in force.

      4. Time limits for utilization of the advance on the outyear's state budget funding: These time limits shall be subject to the same regulations as those applied to time limits for disbursement/settlement of the budgetary year’s state budget-derived public investments if the advance on the outyear’s budget for use as such investments is authorized by competent authorities. In special cases where the Prime Minister is vested with authority to decide the time limit for utilization of the advance on central budget-derived funding; the Presidents of People’s Committees at all levels are accorded authority to decide the time limit for utilization of the advance on local budget-derived funding under their respective jurisdiction, all of the time limits shall not be later than December 31 in the following year.

      5. Upon expiry of the final deadlines for availability and disbursement, the remaining amounts of advance funding shall be treated in the same manner as the budgetary year’s state budget-derived public investments.

      2. What are recovery and final accounting of stage budget advances in the outyear in Vietnam?

      According to Clause 6, Clause 7, Article 12 of Decree 99/2021/ND-CP stipulates as follows:

      6. Recovery of advance funding: Managing agencies shall make funding for projects in the outyear’s state budget estimate available for use as repayments on the advance funding. Managing agencies and regulatory payment bodies shall carry out regulatory procedures for recovery of the advance funding from the budgeted amounts authorized by competent authorities in the budgetary year.

      a) For the advance on central budget-funded public investments: Where any ministry or central authority fails to provide or inadequately provides the minimum budget for recovery of the advance funding according to the decision to assign the annual plan issued by the Prime Minister, the Ministry of Finance shall issue a written notification to request them to make an adequate budget available for recovery of the advance funding in accordance with regulations. Within 10 days after receipt of the written notification from the Ministry of Finance, if they fail to provide the budget in full for recovery of the advance funding according to the plan assignment decision of the Prime Minister, the Ministry of Finance shall report to the Prime Minister and request regulatory payment bodies in writing to temporarily suspend funding for the project failing to meet the requirement for recovery of advance funding pending the Prime Minister's directives.

      b) For the advance on local budget funding or targeted transfers from the superior budget to the inferior budget: Where first-line local budget units fail to provide or inadequately provide the budget for recovery of the advance funding in accordance with regulations, Departments of Finance and Divisions of Finance – Planning shall issue the written notification to these units so that they arrange to recover the advance funding in accordance with regulations. Within 10 working days after receipt of the written notification from financial authorities, if these units fail to arrange to recover the budget according to the budget assignment decision, Departments of Finance and Divisions of Finance and Planning shall report to the same-level People’s Committees and request regulatory payment bodies in writing to temporarily suspend funding for the project failing to meet the requirement for recovery of the advance funding pending the instructions of the same-level People's Committees.

      7. Final accounting of advance funding: The advance funding recovered in a budgetary year shall be subject to the final accounting in that year provided that such final account is in line with the plan for recovery of the advance funding approved by competent authorities.

      Best Regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

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