Conditions added and deposit fee of the State budget increased

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In order to be deposited, the local budget must meet some conditions. Photo: The internet.

In the Circular, the Ministry of Finance stipulates: The purpose of depositing the State fund for the State budget to handle the temporary shortage of State budget fund and meet unexpected expenditure needs when the State budget has not gathered revenue sources and the purpose of depositing the State fund for the local budget to implement investment projects on socio-economic infrastructure under the annual public investment plans and medium- term budget for local capital balance decided by the provincial People’s Council and included in the annual budget estimates approved by the Provincial People's Council in order to speed up the progress to early complete and use.

In particular, in this Circular, the Ministry of Finance added a new point compared to the current provisions, that is condition of state budget deposit for local budget, accordingly, the amounts deposited and refunded in the same budget year must have: Resolution of the provincial People’s Council or written approval of the provincial Standing People's Council on State fund deposit to implement projects; and the local budget has not overdue debts of state fund deposit at the time of requesting for deposit.

For the local budget, the State fund deposit with deposit deadline which lasts over the budget year, besides the above two conditions, the locality should provide the amount of requested deposit which must be in the remaining debt limit for local budget as described in the State Budget Law 2015 and guiding documents; and the amount of requested deposit must be in the over-expenditure of state budget annually decided by the National Assembly in accordance with the State Budget Law 2015 and other guiding documents; also ensuring the proportion of loans to make up the local budget’s over-expenditures with short-term loans under the decision of competent authorities.

The Circular also provides the principles of State fund deposit for the State budget. Specifically: State fund deposit for the State budget is implemented safely and effectively, and ensuring that it does not affect the payment capability of the State Treasury.

The deposit must be decided by the competent authorities and complied with the provisions of State Budget Law 2015 and the guiding documents and the provisions of this Circular. The State fund deposit shall be implemented at the State Treasury and the provincial State Treasury; District state treasuries are not allowed to deposit the State budget funds to local budgets as well as any other objects which are inconsistent with regulations.

Any State fund deposit for the State budget must be refunded fully, on time and in accordance with regulations, except for deposit extension approved by the Minister of Finance. The approved State fund deposits for improper purposes shall not be allocated and retrieved before the deadline.

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The fee of the State fund deposit for the State budget and the local budget is uniformly applied and increased to 0.21% per month of deposit debts and actual days of deposit instead of 0.15% per month as the current time (on basis of 30 days per month).

This Circular takes effect from June 5, 2017, and replaces the Ministry of Finance's Circular No. 162/2012/TT-BTC stipulating capital deposit of State Treasury and Ministry of Finance's Circular 62/2015/TT-BTC amending and supplementing a number of articles of Circular No. 162.