Principles and advance levels for regular expenditures from the State Budget through the State Treasury of Vietnam

Principles and advance levels for regular expenditures from the State Budget through the State Treasury of Vietnam​ - Illustrative Image.

In Clause 1, Article 7 of Circular 62/2020/TT-BTC of the Ministry of Finance of Vietnam, the principles of advance payments for regular expenditures from the state budget through the State Treasury include:

- Advances apply to state budget expenditures of budget-using units that do not yet meet the conditions for direct payment from the State Treasury.

- The content of the advance: according to the provisions of the contract (for cases performed under the contract) and at the request of the budget-using unit (for cases without a contract or contracts valued at or below 50 million VND).

Additionally, in Clause 2, Article 7 of Circular 62/2020/TT-BTC of the Ministry of Finance, the levels of advance payments for regular expenditures from the state budget through the State Treasury are specified as follows:

For expenditures with contract values over 50 million VND, the advance level is as stipulated in the signed contract between the state budget-using unit and the supplier of goods and services. The budget-using unit is allowed to advance funds either once or multiple times for one contract, but not exceeding 50% of the contract value at the time of signing and not exceeding the annual estimate approved by the competent authority for that expenditure, except in the following cases:

• Payment for imported goods and specialized equipment that the budget-using unit must import directly from abroad (or through an entrusted import unit) requiring the opening of a Letter of Credit (L/C) at a bank and where the supplier's contract requires a larger advance but not exceeding the annual estimate approved by the competent authority for that expenditure.
• Other specific cases with separate guidance from a competent state authority, where advances are made within the allocated estimate, according to the signed contract between the budget-using unit and the supplier and following the decision of the competent authority.

For expenditures without a contract and those with contract values not exceeding 50 million VND: The advance level is based on the request of the budget-using unit and within the allocated estimate. The budget-using unit is responsible for the advance request level in conformity with conformable regulations.

For the full text, refer to Circular 62/2020/TT-BTC, issued on June 22, 2020.

Le Vy

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