Advances for recurrent expenditures from the state budget through the State Treasury of Vietnam

Advances for recurrent expenditures from the state budget through the State Treasury of Vietnam (Internet image)

1. Conditions for spending the state budget through the State Treasury of Vietnam 

Conditions for spending the state budget through the State Treasury according to Article 2 of Circular 62/2020/TT-BTC are as follows:

State budget expenditures shall be made only when the following conditions are satisfied:

- Expenditures from the state budget according to the provisions of Clause 2, Article 12 of the Law on State Budget 2015:

State budget expenditures may be made only when included in the assigned budget estimates, except for the case specified in Article 51 of the Law on State Budget 2015; the expenditure has been decided by the head of the budget-using unit, the investor, or an authorized person and meets the following conditions in each case:

+ For capital construction investment, the conditions must be satisfied as prescribed by the law on public investment and construction;

+ For recurrent expenditures, the regime, standards, and norms of budget expenditure must be strictly adhered to as prescribed by competent state agencies;

In case agencies and units have been allowed by competent authorities to do so under the mechanism of autonomy and self-responsibility for the use of payroll and funding, then comply with the internal spending regulations and in accordance with the autonomously assigned estimates;

+ For spending on national reserves, the conditions prescribed by the law on national reserves must be satisfied;

+ For bidding packages of tasks, programs, and projects that need to be bid to select contractors providing consulting services, goods procurement, construction, and installation, bidding must be organized according to the provisions of the law on bidding;

+ For expenses for work performed by the mode of State order and plan assignment, they must comply with regulations on prices, fees, and charges promulgated by competent agencies.

- Having sufficient dossiers as prescribed in Decree 11/2020/ND-CP and dossiers to ensure the legality and validity according to the provisions of current law.

2. Principles of advance payment of recurrent expenditures from the state budget through the State Treasury of Vietnam

Principles of advance payment of recurrent expenditures from the state budget through the State Treasury according to Clause 1, Article 7 of Circular 62/2020/TT-BTC are as follows:

- Advances are applied to state budget expenditures of budget-using units that have not yet fully qualified to make payments directly from the State Treasury.

- Contents of advance: according to the provisions of the contract (for the case of implementation under the contract) and at the request of the budget-using unit (in case there is no contract or the contract value does not exceed VND 50 million).

3. Advances for recurrent expenditures from the state budget through the State Treasury of Vietnam

Advances for recurrent expenditures from the state budget through the State Treasury according to Clause 2, Article 7 of Circular 62/2020/TT-BTC are as follows:

- For expenditures with a contract value of over VND 50 million, the advance level shall be as specified in the signed contract between the state budget-using unit and the goods and service supplier.

The budget-using unit is entitled to a one-time or many-time capital advance for a contract, not exceeding 50% of the contract value at the time of signing, and must not exceed the annual estimate approved by a competent authority for such expenditure, except for the following cases:

+ Payment for imported goods and specialized equipment imported directly from abroad by budget-using units (or through an authorized importer) must open a L/C at a bank, and in the contract, the supplier requires a larger advance but does not exceed the annual estimate approved by the competent authority for such expenditure.

+ In other special cases with separate instructions from competent state agencies, the advance shall be made within the scope of the assigned estimate, according to the contract signed between the budget user and the supplier, and according to the decision of the competent authority.

- For expenditures without contracts and expenditures whose contract value does not exceed VND 50 million: The advance level is at the request of the budget-using unit and within the scope of the assigned estimate. The budget-using unit is responsible for the level of advance requests in accordance with regulations.

Quoc Dat

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