Management, Payment, Recovery, and Finalization of Advance Allocations from Budget Estimates

Management, payment, recovery, and settlement of advance capital from budget estimates (Illustrative photo)

Circular 85/2014/TT-BTC regulates the management, payment, recovery, and settlement of advance capital from the next year's budget estimates for projects as follows:

- The advance of the next year's budget estimate to implement forest protection and development projects is carried out in accordance with the provisions of Article 61 of Decree 60/2003/ND-CP and Circular 59/TT-BTC and supplementary or replacement documents (if any).- After the project is approved to advance capital by the competent authority, ministries, sectors, and localities shall allocate the correct list assigned. The Ministry of Finance notifies ministries, sectors, and localities of the list, total advance amount, advance sources, and recovery period, and sends a copy to the State Treasury for payment to the project. If ministries, sectors, and localities allocate incorrect lists and advance amounts as notified by the Ministry of Finance, the State Treasury shall suspend payment and report to the Ministry of Finance for consideration and handling.- Payment deadline: same as the investment capital payment deadline in the annual plan. Other special cases are decided by the Prime Minister of the Government of Vietnam. After the payment deadline, the State Treasury processes the cancellation of the unused advance capital amount.- Recovery of capital: ministries, sectors, and localities are responsible for arranging the capital plan for the project in the budget estimate of the following year to repay the advance capital. When verifying the annual investment capital allocation, for central budget capital, the Ministry of Finance simultaneously notifies the recovery of advance capital, with the maximum recovery amount equal to the advanced amount unless approved by the Prime Minister of the Government of Vietnam not to recover. For local budget capital and supplementary funds with specific targets from the higher level budget to the lower level budget, if People's Committees at all levels do not arrange or arrange insufficient recovery capital as stipulated, local State Treasury shall notify the Department of Finance, Finance-Planning Department to report to the People's Committees at all levels to arrange for the recovery of advance capital as stipulated.- Capital settlement: The settlement deadline for advance capital is according to the time allocated for recovery. In cases where the project's advance capital is recovered over several years, the recovered capital of each year's plan is settled into the budget of that year, and the paid but unrecovered capital is carried forward to the following year for settlement in line with the recovery plan.

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

Ty Na

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