Circular 85: Control of Payment by the State Treasury

Circular 85: Payment Control by the State Treasury (Illustrative Image)

Circular 85/2014/TT-BTC regulating the payment control by the State Treasury for state budget investment capital used in forest protection and development plans is as follows:

- Based on the payment request dossier of the investor, the State Treasury relies on the payment terms specified in the contract. For projects where the investor implements the project by themselves, the dossier is the job assignment document or internal contract, based on the content of the job assignment document or internal contract of the investor (number of payments, payment stages, payment time, and payment conditions) and the value of each payment to make payments to the investor. The investor bears responsibility for the accuracy and legality of the work volume performed, norms, unit prices, cost estimates of types of work, and the quality of works; the State Treasury does not bear responsibility for these issues. The State Treasury bases on the payment dossier and performs payment according to the contract.- The State Treasury performs payment control based on the principle of "payment first, control later" for each payment and "control first, payment later" for the final payment of the contract. The State Treasury provides specific guidelines on the payment control method within the State Treasury system, ensuring convenience for investors, contractors, and compliance with state regulations.- Within 07 working days for cases of "control first, payment later" and within 03 working days for cases of "payment first, control later", from the date of receipt of the complete payment dossier as required by the investor, based on the contract (or approved cost estimate for works done without a contract) and the amount requested for payment by the investor, the State Treasury controls, allocates payment capital for the project, and recovers the advance capital as stipulated.- For investment projects using official development assistance (ODA) funds, if the international treaty signed by the competent authority of the Socialist Republic of Vietnam has provisions on payment management and finalization of capital different from the regulations of this Circular, the provisions of the international treaty shall apply.- The amount of capital paid for each work item or project section must not exceed the approved cost estimate or the package price; the total amount of capital paid for the project must not exceed the approved total investment level. The amount of capital paid for the project in a year (including advance payments and payments for completed volumes) must not exceed the annual capital plan allocated for the project. As for ODA projects, advance payments and payments for completed volumes are not restricted by the project's annual financial plan but should not exceed the overall financial plan for the entire project.- For some particularly important projects requiring a payment mechanism different from the above regulations, after receiving opinions from competent authorities, the Ministry of Finance will issue separate guidelines.- The annual capital plan for the project is only paid for completed volumes that have been accepted, the payment deadline (including payments to recover advanced capital) is regulated.

Details can be found at Circular 85/2014/TT-BTC effective from August 15, 2014.

Ty Na

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