Level of State Treasury Advances Applied from June 1, 2020

Illustrative image (Source: Internet)

Circular 23/2020/TT-BTC stipulates the specific level of State Treasury advances as follows:

- The level of State Treasury advances for the central budget to handle temporary deficits in the central budget fund is decided by the Minister of Finance within the scope of temporarily idle state treasury resources in the quarter.

- The level of State Treasury advances to handle temporary deficits in the provincial budget fund must not exceed the remaining amount of the local budget expenditure estimate assigned by the Ministry of Finance to each locality at the time of the State Treasury advance proposal; additionally, it is not counted towards the local budget debt limit stipulated in Clause 6, Article 7 of the State Budget Law.

Additionally, the Circular also guides the process and procedures for State Treasury advances to the central budget with the following steps:

- When a need for State Treasury advances arises, the State Budget Department - Ministry of Finance (hereinafter referred to as the State Budget Department) shall issue a document proposing a State Treasury advance to the State Treasury; in which, the proposed advance amount and the repayment period must be specified.

- Based on the document from the State Budget Department and the temporarily idle state treasury resources, the State Treasury shall report to the Minister of Finance to decide on the State Treasury advance for the central budget, including: the advance amount and the repayment period for the State Treasury advance.

- Based on the Decision on State Treasury advances for the central budget by the Minister of Finance, the State Budget Department shall prepare 02 copies of the State Treasury Advance Withdrawal Document according to Form 03/TU issued with this Circular and submit them to the State Treasury to execute the State Treasury advance for the central budget.

For more details, see Circular 23/2020/TT-BTC, effective from June 1, 2020.

Le Hai

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