How is the Treasury's Account Utilized?

Section 2 of Article 5 Circular 58/2019/TT-BTC stipulates that depending on the type of account opened at the State Bank of Vietnam and commercial banks (hereinafter abbreviated as CBs), there will be different purposes for the use of the accounts. Specifically, as follows:

Illustrative image (source internet)

- The central State Treasury's consolidated payment account opened at the State Bank of Vietnam's Transaction Office:

- Used to ensure the overall payment capability of State Treasury units (Central, State Treasury Transaction Office, Provincial State Treasuries, and District State Treasuries - if any) through the interbank electronic payment channel.- Transactions conducted through this account include: revenue and expenditure transactions of the State Treasury Transaction Office, Provincial State Treasuries, and District State Treasuries (if any); transactions related to debt management; transactions managing account balances to ensure the payment capability of the entire State Treasury system; transactions utilizing temporarily idle state funds, handling temporarily deficient state funds according to prescribed policies, and other transactions (if any) according to legal regulations.

- The central State Treasury's consolidated payment account opened at the headquarters of a CB:

- Used to ensure the overall payment capability for the State Treasury Transaction Office, Provincial State Treasuries, and District State Treasuries with accounts at the same CB system through the bilateral electronic payment channel. Transactions conducted through this account include state fund transfer transactions; end-of-day settlement transactions from payment accounts and specialized revenue accounts at the CB.

- The central State Treasury's specialized revenue account opened at the headquarters of a CB:

- Used to conduct end-of-day settlement transactions from specialized revenue accounts of Provincial State Treasuries and District State Treasuries at the same CB system, and end-of-day state fund transfer transactions to the central State Treasury's consolidated payment account at the State Bank of Vietnam's Transaction Office.

- VND payment account of the State Treasury Transaction Office opened at a CB branch:

- Used to conduct revenue and expenditure transactions of state funds, transactions related to debt management; transactions utilizing temporarily idle state funds, handling temporarily deficient state funds according to prescribed policies, and state fund transfer transactions.

- VND payment account of Provincial State Treasuries opened at a CB branch:

- Used to concentrate revenue of state funds by transfer and cash; to pay and disburse state fund expenditures in cash, and to conduct state fund transfer transactions.

- Foreign currency payment account of the State Treasury Transaction Office and Provincial State Treasuries at a CB: Used to conduct revenue and expenditure transactions of state funds in foreign currency.- Payment account of District State Treasuries opened at a CB: Used to conduct revenue and expenditure transactions of state funds; state fund transfer transactions.- Specialized revenue account of Provincial State Treasuries and District State Treasuries opened at CBs: Used to concentrate state budget revenues.

More details can be found in Circular 58/2019/TT-BTC effective from November 1, 2019.

Thu Ba

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