Annual estimates of expenditure and revenue of the developers and Management boards of projects funded by state budget in Vietnam

Annual estimates of expenditure and revenue of the developers and Management boards of projects funded by state budget in Vietnam (Internet image)

On October 1, 2024, the Minister of Finance issued Circular 70/2024/TT-BTC stipulating the management and use of revenue from consulting and project management activities by developers and Management boards of projects funded by state budget in Vietnam.

Annual estimates of expenditure and revenue of the developers and Management boards of projects funded by state budget in Vietnam

According to Article 5 of Circular 70/2024/TT-BTC, the annual estimates of expenditure and revenue of the developers and Management boards of projects funded by state budget in Vietnam are regulated as follows:

- Based on the specific conditions of the project, the project owner decides whether to prepare and approve a single consolidated estimate for both the project owner and the project management board, or to prepare and approve two separate estimates to facilitate management and use. If a single consolidated estimate is prepared for both the project owner and the project management board, it is necessary to clearly identify the expenditure items for the project owner and the project management board.

- Annually, the project owner and project management board, based on the project implementation timeline, project management organization form, project management work scale, characteristics, and related policies, determine the project management costs for each project in accordance with the amount of management tasks and work of the project management in the year, and are responsible for this content. The revenue arising from project costs managed by a competent authority's decision is accounted for into the capital of that project.

The project owner and project management board are responsible for ensuring sufficient project management costs to organize and conduct project management until the project is approved for investment capital settlement as per regulations.

- The annual revenue and expenditure budget is prepared in accordance with Form No. 03/DT-QLDA issued in conjunction with Circular 70/2024/TT-BTC.

Basis for preparing revenue and expenditure Estimates of developers and Management boards of projects funded by state budget in Vietnam

The basis for preparing revenue and expenditure estimates of developers and Management boards of projects funded by state budget in Vietnam is stipulated in Article 7 of Circular 70/2024/TT-BTC as follows:

- Decision to establish the project management board in accordance with the law.

- Decision approving investment policy, project approval decision, decision approving the estimate.

- Cost estimates for investment preparation activities (for revenue and management costs during the investment preparation stage).

- Revenue sources stipulated in Articles 2 and 6 of Circular 70/2024/TT-BTC. In cases where the revenue sources have not been specifically determined at the time of the estimate preparation, the project owner and project management board base on the actual situation to project the revenue and are responsible for the content.

- Current regulations on cost allocation.

- Annual salary calculation table for each employee participating in project management according to Form No. 02/DT-QLDA issued in connection with Circular 70/2024/TT-BTC.

- Current financial management regulations applicable to project owners and project management boards.

- The internal expenditure regulation of the unit constructed and promulgated in accordance with legal compliance.

- Other project bases (if any).

More details can be found in Circular 70/2024/TT-BTC which comes into force in Vietnam from November 15, 2024.

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