Types and purposes of expenditure; amounts of expenditure for organizing festivals in Vietnam

The Minister of Finance of Vietnam promulgates Circular 04/2023/TT-BTC dated January 19, 2023 providing guidelines for management, collection and use of funding for organization of festivals and religious donations or grants for relic sites and festivities.

Types and purposes of expenditure; amounts of expenditure for organizing festivals in Vietnam (Internet image) 

1. Types and purposes of expenditure; amounts of expenditure for organizing festivals in Vietnam  

Article 7 of Circular 04/2023/TT-BTC stipulates the types and purposes of expenditure; amounts of expenditure for organizing festivals as follows:

- Expenditures shall be meant for:

+ PR, communication and advertising activities;

+ Installation, placement of instruction signs; decoration; sound and lighting systems used for attracting visitors to come to join and discover festivals;

+ Restoration and performance of traditional rituals; application of science and technology advances to organization of festivals;

+ Organization of entertainment, recreational, cultural, art and sports activities, conferences, seminars and events providing information about the cultural values ​​of each festival;

+ Security, health, food safety, hygiene, environmental protection, fire prevention and control at festival venues;

+ Stationery supplies, printing, photocopying of materials, electricity, water, telephone bills, postal charges, internet bills, guest reception, front desk, utilization of technical utilities, rental of venues, equipment, event staff and other rental;

+ Remunerations paid to members of Festival Organizing Committees and persons appointed by the Festival Organizing Committee to participate in festivities;

+ Scented incense, worship flowers, offerings, lamps; charity and humanitarian activities; others that may vary depending on the current development of each festival.

- Amounts of expenditure shall be decided by the Chairs of the Festival Organizing Committees according to the Regulations on organization of and financing for the festival on condition that they are aligned with the actual situation, and used in an efficient and effective manner; should conform to the regulations, standards and norms of budget expenditure set forth by competent state agencies.

2. Regulations on state budget’s grants for traditional festivals in Vietnam

According to Article 8 of Circular 04/2023/TT-BTC, the state budget’s grants for traditional festivals are as follows:

- The state budget’s grants shall be spent on restoration and promotion of values ​​of traditional festivals with the aim of arousing patriotism and national pride; maintaining unique and typical cultural values; and meeting the spiritual needs of the people.

- The state budget’s grants shall vary according to the festival organization plan approved by the competent authority; the ability to call for off-budgetary sources of funding for organization of each festival; the availability of the state budget’s funds, and shall be decided by competent authorities in accordance with laws on state budget and within their delegated authority to decide state budget expenditure.

- The state budget’s grants for traditional festivals shall be implemented only when receiving budget estimates from authorities having competence in authorizing use of the budget, and complying with regulations, standards and norms of expenditure set forth by competent state agencies.

- Units designated to play the leading role in receiving, managing and using funds for organization of festivals shall make budget estimates; perform the assigned tasks relating to the state budget, accounting and financial reporting of these grants in accordance with laws on state budget.

The state budget’s grants shall be recorded into the account 160 or 161 (cultural and information services), including items or sub-items defined in the State Budget Index System.

3. Sources of funding for organizing festivals in Vietnam 

Article 4 of Circular 04/2023/TT-BTC stipulates 04 sources of funding for organizing festivals, including:

- Religious donations or grants used for financing festivities; aids or voluntary contributions of domestic and foreign entities or persons.

- Revenues earned from services carried out within festival venues, including leasing of facilities intended for selling souvenirs, food and beverages; filming, photography; parking; transporting tourists; and other services conforming to regulations of local jurisdictions.

- Interest on deposit accounts opened at State Treasuries or commercial banks according to regulations.

- State budget’s grants for traditional festivals (if any).

Circular 04/2023/TT-BTC takes effect from March 19, 2023.

Nhu Mai

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