Advance Payment for Regular Expenditures from the State Budget through the State Treasury

Advance Payment for Regular Expenses from the State Budget through the State Treasury - Illustrative Photo

According to Clause 3, Article 7 of Circular 62/2020/TT-BTC issued by the Ministry of Finance, budget-using units must make advance payments to the State Treasury at the transactional location immediately after the advance expenditure has been completed with sufficient documentation and payment receipts, specifically as follows:

1. For expenditures without contracts or expenses not required to send the contract to the State Treasury, the budget-using unit must make the advance payment to the State Treasury by the last day of the month following the month of advance (except for allowance and subsidy expenses complying with Circular 101/2018/TT-BTC and Joint Circular 29/2014/TTLT-BLDTBXH).

2. For expenditures requiring a contract sent to the State Treasury (in case the contract value exceeds 50 million VND), the budget-using unit makes the advance payment starting from the first payment of the completed volume of the contract. The amount of each advance payment is agreed upon by the budget-using unit and the supplier and specified in the contract, ensuring full payment when the payment value (including both advance and completed volume payments) reaches 80% of the contract value.

3. When making an advance payment, the budget-using unit is responsible for sending the advance payment request form to the State Treasury (clearly stating the content of the advance payment request in line with the content already requested in the Budget Withdrawal Paper/Check No., date, month, year). If the advance payment request form does not fully display the content of the advance payment, the unit must declare on the payment/advance payment content list (for expenses without contracts or with contracts valued at not more than 50 million VND); corresponding documents and records according to the provisions of Article 7 of Decree 11/2020/ND-CP for the State Treasury to control and make the payment.

- In case the conditions are met, the State Treasury makes the advance payment to the budget-using unit as follows:

- If the amount requested for payment is greater than the advanced amount: Based on the unit's advance payment request form (controlled and accepted by the State Treasury), the State Treasury processes the conversion from advance to payment (amount advanced); simultaneously, the unit prepares an additional state budget withdrawal paper/check to send to the State Treasury to pay the difference between the accepted payment amount and the advanced amount.- If the amount requested for payment is less than the advanced amount: Based on the unit's advance payment request form (controlled and accepted by the State Treasury), the State Treasury processes the conversion from advance to payment (amount accepted for advance payment), and the difference will be tracked for recovery or the next payment.- If the amount requested for payment equals the advanced amount: Based on the unit's advance payment request form (controlled and accepted by the State Treasury), the State Treasury processes the conversion from advance to payment (amount accepted for advance payment).

- All advanced amounts (including cash advances and transfers) according to the state budget estimate until the end of the finalization adjustment period without sufficient documents and payment procedures are handled according to the provisions at Article 42 of Decree 163/2016/ND-CP and Article 26 of Circular 342/2017/TT-BTC.

For more details, see Circular 62/2020/TT-BTC, effective August 6, 2020.

Le Vy

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