Guidelines for Management and Utilization of Funds from Forest Plantation Liquidation

Currently, the costs for liquidating afforested areas that do not become forests include the expenses for organizing the liquidation of the forest and harvesting forest products, specifically:

Illustration (source: internet)

- The cost level for organizing the liquidation of the forest and harvesting forest products is implemented according to standards, norms, and policies stipulated by the competent state agency; in cases where there are no standards, norms, and policies stipulated by the competent state agency, the level of expenditure is decided by the authority that approves the liquidation of afforested areas that do not become forests, ensuring economy, compliance with the current state financial management policies, and taking responsibility for their decision after consulting with the financial agency at the same level.- In cases where a new forest planting project is immediately implemented due to the liquidated forest area, the costs for logging and collecting forest products are not considered liquidation costs but are instead funded by the investment capital of the new forest planting project, from the phase of site preparation.

Article 7 of Circular 18/2013/TT-BTC provides guidance on the management and use of revenue from the liquidation of afforested areas that do not become forests. Specifically:

Regarding the management of revenue from the liquidation of afforested areas:

- The costs for organizing the liquidation of the forest and handling harvested forest products are advanced by the organization or individual purchasing the forest products and deducted from the value of the harvested forest products payable to the state.- If no organization or individual proposes to purchase the harvested forest products, the liquidation costs and handling of harvested forest products are advanced from the local state budget for afforested areas managed by the locality. For afforested areas managed by central government bodies, the costs are advanced from the state budget allocated to these central government bodies. These advances are reimbursed from the revenue obtained from the liquidation of the forest and harvested forest products.- If the costs for organizing the liquidation of the forest and handling harvested forest products exceed the revenue from the liquidation of the forest and harvested forest products, the provincial People's Committee will resolve the shortfall using the local budget for afforested areas managed by the locality. For afforested areas managed by central government bodies, the central government bodies with liquidated forests will resolve the shortfall using their annual allocated budget.- The agency deciding on the liquidation of afforested areas that do not become forests will approve the final settlement of expenses for organizing the liquidation of the forest and handling harvested forest products as per regulations.

Regarding the use of revenue from the liquidation of afforested areas:

- Revenue from the liquidation of the forest and harvested forest products, after settling the reimbursement of state budget advances for liquidation costs, is distributed according to benefit-sharing policies as stipulated by forest investment and development laws. The part of the value belonging to the state is paid into the state budget as per state budget laws: into the central budget for forests managed by central ministries/agencies and into local budgets for forests managed by localities.- If afforested areas were funded by the state budget but lacked benefit-sharing policies, the revenue from the liquidation of the forest and harvested forest products, after clearing advances for liquidation costs, is paid into the state budget as per state budget laws.

More details can be found in Circular 18/2013/TT-BTC effective from April 5, 2013.

Thu Ba

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