Management of estimate allocation, disbursement, payment, and settlement of authorized expenditures in Vietnam

Management of estimate allocation, disbursement, payment, and settlement of authorized expenditures in Vietnam (Illustrative image)

Circular 107/2008/TT-BTC stipulates the management of estimate allocation, disbursement, payment, and settlement of authorized expenditures as follows:

- In case a superior state management agency authorizes a subordinate state management agency to perform duties within its functions, it must allocate the necessary funds to the subordinates to carry out those duties.

- When allocating and assigning the authorized funds, the authorizing agency considers the subordinate agency as a special estimate unit and allocates and assigns the estimate as if it were a direct subordinate unit; at the same time, it must inform the People’s Committee at the same level as the authorized agency to coordinate management and ensure the authorized funds are used appropriately and in accordance with the stipulated policies.

- In cases where Ministries simultaneously authorize agencies and units at provincial and district levels, if it is not feasible to allocate and assign estimates directly to district-level units, they may assign the tasks to the provincial-level agency and authorize these units to further allocate and assign estimates to district-level units.

- The payment and disbursement of authorized funds are carried out in the form of withdrawing estimates if the authorization involves regular expenditures and in the form of disbursement and payment of investment capital if the authorization involves investment capital. When disbursing and paying the authorized funds, they must be accounted into the program and budget level of the authorizing unit.

- The State Treasury and the authorized unit shall separately account for and report the expenditures of the authorized funds. The authorized unit must report the settlement of funds directly to the authorizing unit; the authorizing unit reviews and consolidates these into its final budget settlement according to regulations.

More details can be found in Circular 107/2008/TT-BTC, effective from December 18, 2008.

Ngoc Tai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE