How is the Preparation of Cost Estimates for Maintenance and Repair of Public Property Regulated?

Budgeting for the maintenance and repair costs of public assets is stipulated in Article 4 of Circular 65/2021/TT-BTC. Specifically:

- The preparation of a budget for the maintenance and repair of public assets shall comply with policies, standards, economic and technical norms as stipulated by the law on the state budget.

- This Circular provides additional guidance on the preparation of the budget as follows:

+ Annually, based on the guidelines for the preparation of the state budget from the competent authority, and the responsibility for the maintenance and repair of public assets, along with the policies, standards, economic and technical norms for the maintenance and repair of public assets as stipulated in Article 3 of this Circular; the agencies and units assigned to manage and use public assets shall prepare a budget for the maintenance and repair of public assets, consolidating it into their unit's budget, and send it to the superior managing agency for review. The superior managing agency shall then consolidate it into the budget of the level I budgeting unit and submit it to the financial authority at the same level to be presented to the competent authority in accordance with the law on the state budget.

+ The documents accompanying the budget estimate for the maintenance and repair of works and equipment include: the name of the public asset that needs maintenance and repair; the last maintenance and repair time of the public asset; reasons, objectives, and work volume for maintenance and repair; estimated costs, execution, and completion time.

- During the year, if any additional need for the maintenance and repair of public assets arises beyond the allocated budget, the agency or unit shall adjust within the scope of the allocated budget and ensure the documentation as stipulated in clauses 1 and 2 of this Article.

- In cases of damage to public assets due to natural disasters, epidemics, fires, or other force majeure reasons where the managing agency or unit cannot cover the repair costs from the allocated budget; based on the damage assessment report on public assets, the agencies and units assigned to manage and use public assets shall prepare a budget for repairing and restoring normal operations of the public assets and submit it to the superior managing agency for review. The superior managing agency shall then consolidate it and send it to the financial authority at the same level to be presented to the competent authority for the decision on the allocation of funds to repair damages and restore normal operations of public assets in accordance with the extent of damage, the state budget's balancing capacity, and the appropriate decentralization of the state budget. The preparation of the budget for repairing and restoring normal operations of public assets shall be done according to the provisions of clauses 1 and 2 of this Article.

Sincerely.