Vietnam: 03 important contents regarding the use of the Fund for assistance to foreign affairs

Vietnam: 03 important contents regarding the use of the Fund for assistance to foreign affairs (Illustrative image)

Article 7 of Circular 42/2011/TT-BTC stipulates the estimation, allocation, finalization, and mechanism for using the Fund for assistance to foreign affairs in Vietnam as follows:

1. Estimation and allocation of the Fund for assistance to foreign affairs in Vietnam:

- Annually, the Fund, based on the goals, economic diplomatic missions, and specific requirements of the agencies using the Fund to implement economic diplomatic tasks, consolidates and makes the budget estimate to send to the Ministry of Foreign Affairs for overall incorporation into the budget estimate of the Ministry of Foreign Affairs, then submits it to the competent authority as prescribed by the Law on State Budget and guiding documents.

- Based on the approved budget estimate, the Minister of Foreign Affairs proposes the budget allocation plan for the Fund (together with explanations of the use of the Fund by each project and specific economic diplomatic tasks), sends it to the Ministry of Finance for appraisal according to regulations.

Based on the budget allocated by the Ministry of Foreign Affairs (by each budget-using unit), the Fund withdraws the budget from the State Treasury to cover the management of the Fund and provides funding to agencies using the Fund according to the implementation plan of projects and specific tasks approved by the competent authority.

During the budget year, if there is an adjustment of increase or decrease in the estimate among budget-using units, the Fund is responsible for consolidating the adjustment needs, reporting to the Ministry of Foreign Affairs to send to the Ministry of Finance for appraisal according to regulations.

2. Finalization of the Fund for assistance to foreign affairs in Vietnam:

- Annually, the Fund is responsible for finalizing the used budget according to the Law on State Budget and other related state regulations on budget finalization related to the Fund's affairs. Agencies using the Fund are responsible for reporting the finalized budget used and simultaneously sending the original spending documents to the Fund's Office for inspection, approval, and consolidation in the finalization report sent to the Ministry of Foreign Affairs.

- The Ministry of Foreign Affairs is responsible for reviewing and approving the revenue-expenditure finalization of the Fund and consolidating it in the annual finalization report of the Ministry of Foreign Affairs sent to the Ministry of Finance for appraisal according to the Law on State Budget and guiding documents.

The Fund's unused budget by year's end is allowed to be carried over to the next year to use according to the specified purposes and contents. Based on the reconciliation results, the State Treasury where the transaction occurs is responsible for transferring the previous year's budget balance to the next year according to current regulations.

3. Mechanism for using the Fund for assistance to foreign affairs in Vietnam:

- Based on the allocated annual expenditure plan, the Fund Director is responsible for and guides the agencies using the Fund to manage and use the budget correctly as per the economic diplomatic tasks approved by the Minister of Foreign Affairs; under Vietnamese law, complying with current financial management regulations, Fund financial management regulations, and the Fund's organizational and operational regulations.

- Heads of agencies using the Fund are responsible before the law for managing and using the budget and the legality of spending documents. Due to the particular nature of expenditures for economic diplomatic affairs such as partner mobilization affairs, purchasing valuable information, or other special expenses where spend receipts (vouchers, invoices) cannot be provided, when issuing expenditure receipts from the Fund, they must be signed by the head or their authorized representative and the accountant. The authorized person performing these affairs is personally responsible before the law.

Agencies using the Fund are not allowed to spend the Fund's budget on affairs non-conformable to this Circular.

More details can be found in Circular 42/2011/TT-BTC effective from May 10, 2011.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE