Reduction of Cash Payment Amount from the Budget to VND 50 Million per Transaction

This is one of the regulations that have just been supplemented in the draft Circular amending and supplementing certain articles of Circular 13/2017/TT-BTC dated February 15, 2017, of the Ministry of Finance governing the management of revenue and expenditure in cash through the State Treasury system, which is currently being consulted by the Ministry of Finance.

The draft circular stipulates that units and economic organizations with accounts at banks or the State Treasury (KBNN) shall make payments to the state budget (NSNN) by means of non-cash payment or by cash deposited at commercial banks to be transferred into the State Treasury’s account, except for payments to the state budget with a value below VND 5 million.

In addition to non-cash payment methods, the draft circular also stipulates a reduction in the amount of cash transactions that budget-using units must perform through commercial banks from VND 1 billion or more per transaction to VND 50 million or more per transaction.

Furthermore, the draft has amended the process of individual payments through accounts for individuals receiving salaries from the state budget as follows: commercial banks transfer money to individuals according to the payment list for beneficiaries that has been authenticated by the State Treasury (in case the transaction unit sends paper documents and vouchers to the State Treasury for the purpose of controlling state budget expenditure) or is posted on the State Treasury's electronic data exchange portal to prevent exploitation of loopholes in the salary payment process and embezzlement of state and laborers' funds. Additionally, it provides guidance on the process of individual payments through accounts on the State Treasury's public service information page.

Besides, the draft also supplements regulations related to the costs that units must bear when organizing the collection of the state budget; collecting from non-state budget public service activities through banks or intermediary payment service providers as directed by the Prime Minister of the Government of Vietnam in Decision 241/QD-TTg. The costs associated with organizing the collection of the state budget by fee and charge collecting agencies through banks or intermediary payment service providers are state budget expenses and are accounted for and settled under the expenditure item for other expenses and the sub-item for unit's fee and charge expenditures.

The costs associated with the delegation of collection through banks or intermediary payment service providers for revenues from non-state budget public service activities are a regular expenditure of public service providers and are carried out in accordance with the regulations of Decree 16/2015/ND-CP dated February 14, 2015, of the Government of Vietnam governing the self-financing mechanism of public service providers.

This Circular will take effect as of January 1, 2019, to implement the decisions of the Prime Minister of the Government of Vietnam regarding the development of non-cash payments in Vietnam.

Source: Vietnam Financial Times Online

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