Control Over the recurrent use of State Budget by the State Treasury in Vietnam

Control Over the recurrent use of State Budget by the State Treasury in Vietnam

At Point d, Clause 2, Article 6 of Circular 62/2020/TT-BTC, it is stipulated that for funds assigned for tasks, orders, and bidding for the provision of public products and services using the state budget from regular expenditure funds, the following additional contents must be controlled:

- Controlling payment for funds assigned for public product and service tasks:

+ The State Treasury (KBNN) controls based on the budget estimates assigned by the competent authority; Decisions of the superior management agency assigning the public service provision tasks using the state budget for public service providers; List of public service products using state budget funds assigned for tasks, orders, or bidding (Form No. 01, Appendix I issued together with Decree 32/2019/ND-CP dated April 10, 2019, of the Government of Vietnam, which regulates assigning tasks, ordering, or bidding for the provision of public products and services using the state budget from regular expenditure funds (Decree 32/2019/ND-CP) or Decisions of the competent authority regarding the list of public service products using state budget funds executed through task assignment);

When advancing, paying, the State Treasury controls based on contracts, assignment documents, or internal outsourcing contracts (for cases of self-implementation), acceptance records of each payment; Acceptance documents of the assigned tasks between the superior management agency and the public service provider to make payments to the unit.

+ In case sectoral law already provides regulations for assigning tasks to produce, supply public products, and services, the payment for assigned tasks shall comply with the provisions of the State Budget Law, sectoral law, other related laws, and current regulations.

- Controlling, paying funds for orders, and bidding:

+ Controlling payment for order funds for public service providers under its management:

The State Treasury controls based on the budget estimates assigned by the competent authority; Decisions of the superior management agency to order the affiliated public service providers to provide public services using state budget funds; List of public service products using state budget funds assigned for tasks, orders, or bidding and the list of public utility products and services executed through orders or bidding (Appendix I and Appendix II issued together with Decree 32/2019/ND-CP) or Decisions of the competent authority regarding the list of public service products using the state budget funds executed through orders; prices or order price;

When advancing, paying, the State Treasury controls based on contracts, assignment documents, or internal outsourcing contracts (for cases of self-implementation) and acceptance records of each payment; acceptance records of products according to the competent authority's regulations and annual acceptance records of orders between the superior agency and the public service provider according to the provisions in Form No. 02 issued together with Decree 32/2019/ND-CP to make payments to the unit.

+ Controlling funds in order contracts, bidding for other public service providers; manufacturers, suppliers of public utility products, and services:

The State Treasury controls based on the budget estimates assigned by the competent authority; List of public service products using state budget funds assigned for tasks, orders, or bidding, and the list of public utility products and services executed through orders or bidding (Appendix I and Appendix II issued together with Decree 32/2019/ND-CP) or Decisions of the competent authority issuing the list of public service products using state budget funds executed through orders; contracts signed between the ordering agency and other public service providers; manufacturers, suppliers of public utility products and services (according to Form No. 03 issued together with Decree 32/2019/ND-CP); price or order price, subsidy price, consumption price, acceptance records of products according to the competent authority's regulations; acceptance records of each payment and acceptance, termination records of contracts according to the provisions in the contract (according to Form No. 04 issued together with Decree 32/2019/ND-CP) for control and payment.

In the case other public service providers; manufacturers, suppliers of public utility products, and services open deposit accounts at the State Treasury: When making payments from the deposit account, the State Treasury at the transaction location checks and controls the legality and validity of the payment orders to make payments to beneficiaries, ensuring it is within the balance of the deposit account of the unit at the State Treasury.

- Funds for orders, contracts for the provision of public products and services; the difference between revenue exceeding expenditure from orders, contracts (if any) is executed in accordance with the provisions of Clause 3, Article 24, Decree 32/2019/ND-CP.

- When task assignment, orders, or bidding concludes and the superior management agency accepts products that do not meet the requirements or do not fully perform the quantity and volume of public products and services assigned tasks, orders, or bidding or for reasons that must stop implementation: The State Treasury acts in accordance with the provisions of Clause 4, Article 24, Decree 32/2019/ND-CP.

For detailed content, see the full text at Circular 62/2020/TT-BTC, which comes into effect in Vietnam from August 6, 2020.

Le Vy

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