5 Principles of Control and Payment of State Budget through the State Treasury in Vietnam

5 Principles of Control and Payment of State Budget through the State Treasury in Vietnam

Article 3 of Circular 62/2020/TT-BTC stipulates 5 principles for controlling and paying through the State Treasury in Vietnam as follows:

1. State budget expenditures must meet the conditions of state budget expenditures as stipulated in Article 2 of Circular 62/2020/TT-BTC.

2. State budget expenditures are conducted on the principle of direct payment from the State Treasury to salary, allowance, subsidy recipients, and suppliers of goods and services. In cases where certain expenditures do not yet meet the conditions for direct payment from the State Treasury, the budget-using unit may advance funds to proactively spend according to the allocated estimate, then settle with the State Treasury in accordance with Article 7 of Circular 62/2020/TT-BTC.

3. State budget expenditures are accounted for in Vietnamese Dong. In cases where state budget revenues and expenditures are in foreign currency, they are converted into Vietnamese Dong at the accounting exchange rate stipulated by the competent authority for accounting of state budget revenues and expenditures at the time of occurrence.

4. Advances and payments in cash must comply with the provisions of Circular 13/2017/TT-BTC dated February 15, 2017 of the Ministry of Finance on cash management through the State Treasury system (Circular 13/2017/TT-BTC) and Circular 136/2018/TT-BTC dated December 28, 2018 of the Ministry of Finance amending and supplementing a number of provisions of Circular 13/2017/TT-BTC (Circular 136/2018/TT-BTC).

5. In cases where state budget expenditures are conducted through electronic transactions via the State Treasury's public service information portal, the control and payment by the State Treasury must comply with regulations on electronic transactions in the State Treasury's operations as stipulated in Decree 165/2018/ND-CP dated December 24, 2018 of the Government of Vietnam on electronic transactions in financial activities; Decree 11/2020/ND-CP.

Details of the document at Circular 62/2020/TT-BTC, which comes into effect in Vietnam from August 6, 2020.

Le Vy

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