Conditions for supporting projects to treat, renovate, and restore polluted areas in Vietnam

On May 25, 2023, the Ministry of Finance issued Circular 31/2023/TT-BTC amending Circular 02/2017/TT-BTC guiding the management of environmental protection non-business funds and amending regulations on conditions for supporting projects on treatment, renovation, and restoration of polluted areas.

Conditions for supporting projects to treat, renovate, and restore polluted areas in Vietnam

According to Circular 31/2023/TT-BTC, the support conditions for projects on treatment, renovation, and restoration of polluted areas under the responsibility of the State under the provisions of the Law on Environmental Protection are specified as follows:

- Being on the list of environmentally polluted areas under the Prime Minister of Vietnam's Decisions.

- The content of the project has the nature of recurrent expenditure".

- Written requests of ministries, central agencies, and provincial-level People's Committees (for projects supported by the central budget's environmental non-business expenditures);

Documents of local agencies and units requesting provincial-level People's Committees (for projects supported by environmental non-business expenditures of the local budget), clearly stating the source of support capital.

- Project approval decisions of ministries, central agencies, and provincial-level People's Committees according to current regulations and included in the annual budget plan.

- For local projects that require partial support from the central budget, in addition to the above conditions and principles, the following conditions must be met:

+ The People's Committee of the province in Vietnam has a written commitment to allocate enough local counterpart capital according to the prescribed rate for project implementation, but the project commitment has not yet been allocated funds for implementation and has not received support from other capital sources;

(Government bonds, ODA capital, foreign aid, capital from national target programs, target programs, and other capital sources, if any)

In case the locality does not allocate enough reciprocal capital for the project as prescribed, the difference in funding from the central budget is supported by the central budget, and the provincial People's Committee is responsible for refunding the central budget (submitted or canceled at the State Treasury);

+ Localities also receive balanced subsidies from the central budget.

Circular 31/2023/TT-BTC takes effect from July 11, 2023.

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