Based on the Forecast of Temporarily Idle and Temporarily Deficit State Budget Funds

According to the provisions of Circular 64/2019/TT-BTC, based on the forecast of the possibility of temporarily idle state treasury funds (STF) or temporarily short-term STF in the period, the State Treasury (ST) develops a plan to manage STF, seeks opinions from the Department of State Budget, the Department of Finance of Banks and Financial Institutions, and submits to the Ministry of Finance for approval under the provisions of Article 5 of Decree 24/2016/ND-CP, specifically in the following two cases:

Illustration (source: internet)

First: In case of forecasted temporarily idle STF in the quarter or year, the STF management plan clearly states the limits for using temporarily idle STF as stipulated in Article 13 of Circular 314/2016/TT-BTC.

Second: In case of forecasted temporarily shortfall STF in the quarter or year, the STF management plan clearly states the total amount of treasury bills issued to compensate for temporarily shortfall STF; the total amount of early withdrawal from time deposits at commercial banks (if any).

Furthermore, according to the provisions in Circular 314/2016/TT-BTC, temporarily idle STF or temporarily shortfall STF in the period is determined according to the following formula: Estimated STF balance at the beginning of the period plus (+) the total potential STF revenue in the period (including recoverable due STF amounts) minus (-) the total STF expenditure needs in the period (including repayment of borrowed funds to cover temporarily shortfall STF due in the period) minus (-) the minimum STF balance in the period. Cases:

- The positive difference is the temporarily idle STF in the period.- The negative difference is the temporarily shortfall STF in the period.

See more regulations in Circular 64/2019/TT-BTC effective from November 1, 2019.

Thu Ba

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