What are 04 principles for managing the funding of the poverty reduction projects in the Northern mountainous provinces of Vietnam - Phase 2?

What are principles for managing the funding of the poverty reduction projects in the Northern mountainous provinces of Vietnam - Phase 2? (Illustrative Image)

Four principles for managing funds are stipulated in Article 5 of Circular 123/2010/TT-BTC, specifically:

- The Poverty Reduction Project in the Northern mountainous provinces Phase 2 is an investment project funded by basic construction investment capital and is managed according to the current policies on basic construction investment management and the state policies on hunger eradication and poverty reduction.

- The IDA loan for the Project is state budget capital and is managed according to the regulations on state budget capital management and the sponsor's regulations.

- The proportion of the IDA-funded capital for components and items is specified in the Financing Agreement and the Project Implementation Manual issued by the Ministry of Planning and Investment as prescribed in the Financing Agreement.

- Budget accounting method: Monthly, based on the disbursement report from the Central Coordination Board, the Provincial Project Management Boards, the Ministry of Finance will conduct procedures to record the state budget revenue from the IDA loan for the Project and record central government expenditures with targeted additional funding for the local budgets to implement the project in the provinces and record expenditures for the Ministry of Planning and Investment to implement the project at the central level.

For more details, see: Circular 123/2010/TT-BTC, effective from October 03, 2010.

Nguyen Phu

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