Principles of Advance Payments and Settlement of Advances for State Budget Expenditures
Regulations on Principles of Advance Payment and Settlement of Advance Payment for State Budget Expenditures
Based on Clause 1, Article 7 of Circular 62/2020/TT-BTC, the principles of advance payment and settlement of advance payment are stipulated as follows:
a) Advance payments apply to state budget expenditures of budget-using units that do not yet meet the conditions for direct payments from the State Treasury.
b) Contents of the advance: according to the contract (for cases executed under a contract) and as per the request of the budget-using unit (for cases without a contract or the contract value does not exceed 50 million VND).
Regulations on the Advance Payment Rate and Settlement for State Budget Expenditures
Based on Clause 2 of this Article, the advance payment rate and settlement for state budget expenditures are specified as follows:
- Advance rate:
a) For expenditures with a contract value exceeding 50 million VND, the advance rate follows the terms stipulated in the contract signed between the state budget-using unit and the provider of goods and services. The budget-using unit may advance funds once or multiple times for a contract, but the maximum amount should not exceed 50% of the contract value at the time of signing and should not exceed the annual estimate approved by the authorized authority for that expenditure, except for the following cases:
- Payment for imported goods, specialized equipment that the budget-using unit must directly import from abroad (or through an entrusted import unit) requires opening an L/C at a bank, and the supplier's contract demands an advance greater than the estimate approved for that expenditure.
- Other specific cases with individual guidance by competent state agencies, the advance is carried out within the allocated estimate, as per the signed contract between the budget-using unit and the provider and according to the decision of the competent authority.
b) For expenditures without a contract and those with a contract value not exceeding 50 million VND: the advance rate follows the request of the budget-using unit and within the allocated estimate. The budget-using unit is responsible for the requested advance amount in conformity.
Sincerely!
