Thông tư 199/2009/TT-BTC

CIRCULAR

PROVIDING THE FINANCIAL MECHANISM FOR THE IMPLEMENTATION OF THE PROGRAM ON SUPPORT FOR RAPID AND SUSTAINABLE POVERTY REDUCTION IN POOR DISTRICTS

THE MINISTRY OF FINANCE

Pursuant to the Government's Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the Law on the State Budget;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government's Resolution No. 30a/2008/ND-CP of December 27, 2008, on the Program on rapid and sustainable poverty reduction in 61 poor districts;
The Ministry of Finance provides for the financial mechanism for the implementation of the Program on rapid and sustainable poverty reduction during 2009-2020 under the Government's Resolution No. 30a/2008/NQ-CP of December 27, 2008 (below referred to as
Resolution No. 30a/2008/ND-CP), as follows:

I. FINANCIAL MECHANISM FOR THE IMPLEMENTATION OF THE PROGRAM

Article 1. General provisions

1. Funding sources for the Program on support for rapid and sustainable poverty reduction in poor districts (below referred to as the Program) include the state budget, ODA, government bonds, credit capital and contributions of enterprises and people and other lawful financial sources.

2. People's Committees of provinces with poor districts and People's Committees of poor districts (provinces with poor districts and poor districts are identified in Appendix I to the Prime Minister's Official Letter No. 705/TTg-KGVX of May 11, 2009) shall mobilize local sources and raise funds from units, organizations and individuals according to regulations and consolidate capital sources for programs, projects and tasks earned out in their localities under a joint circular of the Ministry of Planning and Investment and the Ministry of Finance guiding the consolidation of capital sources for programs, projects and tasks carried out in poor districts.

3. Ministries and central agencies shall prioritize and allocate capital under their direct management to programs, projects and tasks carried out in poor districts. Provincial-level People's Committees shall prioritize and allocate local budgets to provide supports to poor districts (including those in which investments are made with local budget funds under decisions of local administrations).

4. The Program must be implemented in a transparent and democratic manner with the broad participation of local people. Commune-level People's Committees shall make public announcement on beneficiaries and funding amounts of programs, projects, objectives and tasks in each year and throughout the implementation duration of the Program.

Article 2. Financial mechanism for the implementation of the Program

Localities and beneficiaries in poor districts which are enjoying incentive policies other than those specified in Resolution No. 30a/2008/NQ-CP continue enjoying these policies. If such policies are similar to those provided in Resolution No. 30a/2008/ND-CP, but the incentive levels arc different, they will enjoy the higher incentives.

2. All communes in poor districts (excluding those in districts in which investments are made with local budget funds under decisions of local administrations) are entitled to policies provided by the State and implement the financial manage­ment mechanism applicable to communes with extremely difficult conditions of poor districts which are covered by Program 135, phase II.

3. The consolidation of capital sources for the implementation of projects and tasks under the Program in localities must be based on general mechanisms and policies on poverty reduction support, actual demand of people in each hamlet or commune, and resources of local programs and projects so as to ensure uniformity and efficiency. The number of intermediary units must be reduced so as to concentrate resources for the fulfillment of the objective of rapid and sustainable poverty reduction without changing the assigned objectives, total investment and non­business funds. Adequate funds must be ensured for the implementation of regimes, criteria and norms related to individuals and households and must not be used for other objectives and tasks.

4. In case donors provide financial support for the implementation of programs, projects and tasks which are currently funded with the state budget, part or the whole of the state budget capital amount already allocated to these programs, projects or tasks may be used to implement other programs, projects and tasks under Resolution No. 30a/2008/NQ-CP (the whole amount may be used, if the financial support provided by donors is higher than or equal to the allocated slate budget amount; a part equivalent to the financial support provided by donor may be used, if the financial support provided by donors is lower than the allocated state budget amount), unless otherwise committed with donors.

5. Enterprises and cooperatives newly founded under investment projects in geographical areas with difficult and extremely difficult socio­economic conditions, economic zones and hi-tech parks; hi-tech projects or scientific research and technological development projects, public investment projects to develop exceptionally important infrastructure facilities and projects to manufacture software products; and education and training, job training, healthcare, cultural, sports and environmental enterprises are entitled to tax incentives (preferential tax rates, tax exemption and reduction) according to the Law on Enteiprise Income Tax. Enterprises and cooperatives that provide donations for education and healthcare activities, construction of houses for the poor or remedying of natural disaster consequences will be allowed to account these donations as deductible expenses upon determination of incomes liable to enterprises income tax. Production, construction or transport enterprises which employ a large number of female or ethnic minority laborers are. apart from being permitted to account expenses for female or ethnic minority laborers as deductible expenses upon determination of taxable income, also entitled to enterprise income tax reduction corresponding to the amounts paid for female or ethnic minority laborers.

In addition, enterprises and cooperatives are also exempted from enterprise income tax for incomes eligible for tax exemption under the Law on Enterprise Income Tax. In case enterprises or cooperatives produce or trade in goods or provide services liable to value-added tax or excise tax or import or export goods to serve their production and business activities, they shall pay value-added tax, excise tax, import tax or export tax and enjoy incentives (if any) under relevant tax laws.

Enterprises and cooperatives which are allocated or leased land by the State under the land law for use as grounds for production and business operations shall pay land use levy or land rent under the Government's regulations on the collection of land use levy and land and water surface rent and enjoy incentives (if any) under relevant laws.

II. ESTIMATION, EXECUTION AND FINALIZATION OF FUNDS FOR THE PROGRAM

Article 3. Fund estimation and allocation

1. Funds for the implementation of the Program will be estimated and allocated under the Law on the State Budget, the Prime Minister's instructions and guiding documents.

2. Annually, district-level People's Committees shall estimate funds for the implementation of Resolution No. 30a/2008/NQ-CP for each project, task, regime or policy and send these funding estimates, together with their budget estimates, to the provincial-level Finance Department, Planning and Investment Department and relevant agencies for inclusion in the budget estimate of the province. These funding estimates must identify to-be used capital sources, including the state budget (central budget and local budget). ODA, government bonds, credit capital, contributions of enterprises and people and other lawful financial sources as prescribed, with investment capital and non-business capital of each capital source clearly separated.

Budget estimates and funding sources for the implementation of projects, tasks, regimes and policies specified in Resolution No. 30a/2008/NQ-CP shall be allocated under annual plans so as to ensure their feasibility: They shall be reported to the provincial-level People's Committee for consideration and sending to the Ministry of Finance, the Ministry of Planning and Investment and relevant ministries for sum-up and submission to the Government for subsequent submission to the National Assembly for decision.

Annual budget estimates shall be elaborated according to criteria and forms provided in Appendices to this Circular {not printed herein) with specific explanations about grounds for estimating funds for each project, task, regime or policy (beneficiaries, work volume, funds and capital sources).

3. For investment capital from government bonds for traffic, irrigation, education and healthcare projects: Based on the total assigned capital level and the implementation schedule of projects, annually, the provincial-level People's Committee shall send a written registration of the need for government bond capital for each project to the Ministry of Planning and Investment, the Ministry of Finance and concerned ministries for sum-up and use as a basis for mobilization and allocation of government bond capital. The registration of annual needs for government bond capital shall be carried out within the time limit for the elaboration of state budget estimates as prescribed.

4. Ministries and central agencies shall elaborate annual budget estimates according to their assigned domains, detailing funds of support for poor districts in each province, and send these estimates to the Ministry of Finance and the Ministry of Planning and Investment for sum-up and reporting to the Government for inclusion into the annual budget estimates for submission to the National Assembly, paying special attention to the following:

a/ The Ministry of Agriculture and Rural Development shall sum up capital needs for the project on planting five million hectares of forests (including funds for the implementation of policies on support through contracting forests for tending and protection and assigning land areas for production forest plantation specified at Point 1. Clause A. Section II, Part II of the Government's Resolution No. 30a/2008/NQ-CP of December 27, 2008, except for the amount of VND 5 million/ ha/household provided as financial support for poor households to build food-crop fields on the forest areas contracted for tending and protection or land areas assigned for production forest plantation and the 50%-interest rate support for loans borrowed from state commercial banks for production forest plantation); the program on the resettlement of inhabitants; government bond capital for irrigation works; and funds for vaccination against dangerous epidemics for cattle and poultry.

b/ The Committee for Ethnic Affairs shall sum up capital needs for the implementation of Program 135, phase II (excluding funds for communes outside Program 135 but entitled to policies like communes covered by Program 135); the program on building centers of commune clusters; the Prime Minister's Decision No. 134/2004/QD-TTg of July 20, 2004: Decision No. 32/2007/QD-TTg of March 5, 2007 and Decision No. 33/2007/QD-TTg of March 5, 2007.

c/ The Ministry of Labor, War Invalids and Social Affairs shall sum up capital needs for the national program on poverty reduction, job-training program and labor export scheme.

d/The Ministry of Health shall sum up capital needs for the program on population and family planning; government bond capital for upgrading district and regional hospitals, regional general clinics and other healthcare projects under the Prime Minister's decisions; and state budget capital for investment in district-level health centers and preventive medicine centers.

e/ The Ministry of Education and Training shall sum up the needs for government bond capital for the building of permanent schools and classrooms and housing for teachers.

f/ The Ministry of Transport shall sum up the needs for government bond capital for the construction of road works.

g/ The Ministry of Construction shall sum up capital needs for provision of housing support to poor households.

h/ The Ministry of National Defense shall sum up capital needs for training and re-training physicians and medical workers at the grassroots level to raise their professional qualifications; building civil-military health stations; building vocational training schools for demobilized soldiers and local laborers; organizing cultural and art activities, helping local people develop a new lifestyle, and assuring social security, order and safety.

i/ State-run commercial banks, the Vietnam Bank for Social Policies and the Vietnam Development Bank shall sum up needs for preferential credit capital and calculate levels of interest rate support and management expenses and send them to the Ministry of Finance and the Ministry of Planning and Investment for inclusion into annual state budget estimates according to regulations.

5. On the basis of the budget estimates assigned by the Prime Minister, the local budget, capital sources of programs, projects, objectives and tasks and other lawful sources for the implementation of projects, tasks, regimes and policies prescribed in Resolution No. 30a/2008/ND-CP. the provincial-level Finance Department shall assume the prime responsibility for, and coordinate with concerned agencies in. reporting funding estimates to the provincial-level People's Committee for submission to the provincial-level People's Council for inclusion in the local budget estimate, including budget estimates of poor districts.

6. Based on the resolution of the provincial-level People's Council, the provincial-level People's Committee shall assign budget estimates to districts. Based on resources of local programs and projects and actual demand of people in each hamlet or commune, the district-level People's Committee shall propose the district-level People's Council to decide on district budget estimates and the plan on allocation of budget capital to each agency and unit and assign budget estimates to communes (in localities where district-level People's Councils are not organized on a pilot basis, budget estimates will be elaborated and decided under the guidance in the Finance Ministry's Circular No. 63/2009/TT-BTC of March 27, 2009). Commune-level People's Committees shall propose commune-level People's Councils to decide on revenue-expenditure estimates of commune budgets.

7. Based on the decision of competent authorities, commune-level People's Committees shall publicize the investment level for each work, project or task and the support level for each household under each policy or regime according to the Finance Ministry's Circular No. 10/2005/TT-BTC of February 2. 2005. guiding the implementation of the Regulation on financial publicization applicable to the allocation, management and use of capital construction investment capital belonging to the state budget, and Circular No. 54/2006/TT-BTC of June 19. 2006. guiding the implementation of the Regulation on financial publicization of supports directly provided from the slate budget to individuals.

Article 4. Management, allocation, payment and finalization of funds

1. Funds for the Program will be managed and used under the Law on the State Budget and its guiding documents.

The management, allocation, payment and finalization of funds for the implementation of projects, tasks, regimes and policies specified in Resolution No. 30a/2008/NQ-CP for agencies and units as well as for each household must be strictly implemented for proper objectives towards right beneficiaries in accordance with regulations. For payments in cash (or kind) to households, commune-level People's Committees shall make a list of receiving households with the signatures of household heads and the certification of the hamlet chief and fully comply with regulations on payment procedures and documents.

2. For works and projects funded with development investment capital

The management, allocation and payment of capital for works and projects funded with the state budget comply with the Finance Ministry's circular guiding the management, payment and finalization of investment capital for poor districts, paying special attention to the following contents:

a/ For supports provided for reclamation, restoration and cultivation of terraced fields: Based on specific conditions in the locality and large land areas for reclamation, the district-level People's Committee shall formulate projects on mechanicalized reclamation and cultivation of terraced fields, assign these projects to households and manage, allocate, pay and finalize funds to them according to the above circular. For small and scattered areas of agricultural land or land areas where it is difficult for mechanicalized cultivation, supports shall be provided directly to households to reclaim, restore and cultivate terraced fields by themselves: commune-level People's Committees shall make a list of households (covering such details as number of households, areas and places of terraced fields to be reclaimed, restored or cultivated) for submission to the district-level People's Committee for approval. Based on the list of households approved by the district-level People's Committee, the commune-level People's Committee shall sum up capital needs for sending the financial agency for use as a basis for examination, control and allocation of funds through an order of payment via the state treasury (to be transferred into the commune budget account or supplemented as targeted allocations to the commune budget depending on management decentralization) to the commune-level People's Committee for payment to households on the basis of written records of reclaimed land areas which are signed by household representatives and certified by village chiefs.

b/ The project on planting five million hectares of forests complies with the guidance in the Finance Ministry's Circular No. 89/2008/ TT-BTC of October 15, 2008, guiding the management, allocation and payment of state budget capital for the project on planting five million hectares of forests and other relevant documents.

c/ Investment capital from government bonds complies with the Finance Ministry's Circular No. 28/2007/TT-BTC of April 3, 2007, Circular No. 133/2007/TT-BTC of November 14, 2007, and Circular No. 89/2009/TT-BTC of April 29, 2009, guiding the management, allocation, payment and finalization of investment capital from government bonds; Circular No. 46/2008/TT-BTC of June 6, 2008, Circular No. 1I4/2009/TT-BTC of June 3, 2009, guiding the mechanism on management and use of capital for the implementation of the Scheme on building of permanent schools and classrooms and housing for teachers during 2008-2012: Circular No. 119/2008/TT-BTC of December 8. 2008, Circular No. 115/2009/TT-BTC of June 3, 2009, guiding the management, payment and finalization of investment capital for locally run healthcare projects under Resolution No. 18/2008/NQ-QH12 of June 3, 2008, of the XIl^th National Assembly.

d/ The management, allocation, payment and finalization of capital of programs and projects. ODA capital, credit capital and capital mobilized from enterprises and people comply with current regulations applicable to each capital source.

3. For tasks, regimes and policies performed with non-business capital sources.

The management and allocation of funds comply with the Finance Ministry's Circular No. 59/2003/TT-BTC of June 23, 2003, guiding the implementation of the Government's Decree No. 60/2003/ND-CP of June 6. 2003, detailing and guiding the implementation of the Law on the State Budget and current guiding documents, paying special attention to the following:

a/ Regarding the supply of food for poor households in border hamlets: Based on the list of food-lacking poor households in border hamlets (excluding beneficiaries of regimes and polices under other programs such as the project in rock mountain districts in Ha Giang province: poor households receiving forests for contractual forest tending and protection or land for production forest plantation specified at Item c. Point 1, Clause A, Section II. Part II of Resolution No. 30a/2()08/NQ-CP) approved by the district-level People's Committee, rice supply contracts signed between the unit authorized by competent authorities and rice suppliers, the quantity of rice actually provided to households according to the handover record between the supplier and each household (which must be signed the household head and certified by the village head) and the request of the commune-level People's Committee, the finance agency shall conduct examination, make and send a payment order to the state treasury for the latter to transfer funds to the unit assigned to make payment to the rice suppliers.

b/ For the lump-sum support for the purchase of plant varieties and animal strains and fertilizer: Based on the norms on. and prices of. strains and fertilizer decided by the chairperson of the provincial-level People's Committee, commune-level People's Committees shall announce species of plant and animal to be used for agricultural restructuring for households to register the areas of land under cultivation and the quantity and kinds of strains and fertilizer for submission to the district-level People's Committee for approval. Based on the supply contracts signed between the units authorized by competent authorities and suppliers; the quantity, kinds and prices of varieties or strains and fertilizer actually supplied to households according to the handover record between the supplier and each household (which must be signed the household head and certified by the hamlet chief) and the request of the commune-level People's Committee, the finance agency shall examine and send a payment order to the state treasury for the latter to transfer funds to the unit assigned tasks to make payment to suppliers.

In case varieties or strains, fertilizer and other goods are purchased from people for use in projects under the Program, their prices must match the common prices in the local market at that time (the district-level finance office shall evaluate prices so as to ensure this); payment documents are sale and purchase documents with households which must be certified by the hamlet chief and the commune-level People's Committee.

c/ The provision of support for agricultural, fishery and industrial extension activities complies with Joint Circular No. 30/2006/TTLT-BTC-BNNPTNT of April 6, 2006. of the Ministry of Finance, the Ministry of Agriculture and Rural Development and the Ministry of Fisheries, on the management and use of non-business economic funds for agricultural and fishery extension activities: Joint Circular No. 50/2007/ TTLT-BTC-BNNPTNT of May 21. 2007. of the Ministry of Finance, the Ministry of Agriculture and Rural Development and the Ministry of Fisheries, amending and supplementing Circular No. 30/2(K)6/TTLT-BTC-BNNPTNT of April 6. 2006: Joint Circular No. 36/2006/TTLT-BTC-BCN of May 16.2005. of the Ministry of Finance and the Ministry of Industry, guiding the use of non-business economic funds for industrial extension activities. Funds for the provision of support for poor households comply with Joint Circular No. 1()2/2(X)7/TTLT-BTC-LDT13XH of August 20. 2007. of the Ministry of Finance, the Ministry of Labor. War Invalids and Social Affairs, guiding the mechanism on financial management applicable to a number of projects under the national target program on poverty alleviation.

d/ Funds for job training of rural laborers comply with Joint Circular No. 06/2006/TTLTI-BTC-BLDTBXH of January 19. 2006. of the Ministry of Finance and the Ministry of Labor. War Invalids and Social Affairs, guiding the provision of support in short-term job training to rural laborers: funds for poor households comply with Joint Circular No. 102/2007/TTLT/BTC-LDTBXH of August 20. 2007, of the Ministry of Finance and the Ministry of Labor. War Invalids and Social Affairs guiding the mechanism of financial management applicable to a number of projects under the national target program on poverty reduction. The provision of support in general education and vocational and foreign language training for laborers to work abroad complies with the Joint Circular of the Ministry of Labor. War Invalids and Social Affairs and the Ministry of Finance, guiding the implementation of a number of provisions of the Prime Minister's Decision No. 71/2009/QD-TTg of April 29, 2009.

e/ Funds for training and re-training commune and hamlet cadres to improve their qualifications comply with Joint Circular No. 01/2008/TTLT-UBDT-KHDT-TC-XD-NNPTNT of September 15, 2008, of the Committee for Ethnic Affairs, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Construction and the Ministry of Agriculture and Rural Development, guiding the implementation of the program on socio-economic development in communes with exceptionally difficult conditions in ethnic minority and mountainous regions during 2006-2010.

4. Funds for direction, examination and supervision activities and meetings, preliminary reviews and final reviews and working-trip allowances for participants in conferences and re-training courses organized at commune, district or central levels and office equipment for localities shall be allocated from local budgets and management funds of the Program 135, phase II, and managed, allocated, paid and finalized according to current regulations applicable to each source of capital.

5. Funds for the implementation of the Program which are allocated from budgets must be managed and paid via state treasuries. For contributions made in cash or kind as well as donations in kind or labor, based on the unit price of contributed items and the value of working day, finance agencies shall convert these contributions and donations into Vietnam dong and make orders on remittance into the state budget and, at the same time, orders on payment via state treasuries for the latter to account them into the value of the work or project and record them as state budget revenues and expenditures according to regulations.

6. Funds allocated from the central budget as targeted allocations to local budgets for the implementation of the Program under Resolution No. 30a/2008/ND-CP shall be accounted and finalized as local budget revenues and expenditures according to current regulations.

III. EXAMINATION, SUPERVISION AND REPORTING

Article 5. Examination, supervision and evaluation

1. Provincial-level People's Committees shall take direct and full responsibility for the quality, schedule and effectiveness of the Program in their localities. Based on the Program's objectives and their local practical conditions, provincial-level People's Committees shall direct districts to formulate specific targets to be obtained each year and each period and upon the termination of the Program, which shall be used as grounds for evaluating the implementation of the Program in each district and commune as well as the whole province.

2. Provincial-level People's Committees shall direct agencies, units and districts to regularly examine the implementation of the Program. Provincial-level standing agencies of the Program shall propose inspection plans and contents and assist provincial-level People's Committees in summing up and reporting the results of evaluation of the Program.

3. Provincial-level People's Committees shall direct departments, district-level People's Committees and relevant units to create favorable conditions for People's Councils, Fatherland Front and mass organizations at all levels and the community to participate in the supervision of the implementation of the Program in a coordinated manner.

Article 6. Reporting

1. District-level People's Committees shall direct relevant agencies and commune-level People's Committees to collaborate with state treasuries in monitoring the allocation, payment and finalization of funds for the implementation of projects, tasks, regimes and policies prescribed in Resolution No. 30a/2008/ND-CP; commune-level People's Committees shall make monthly reports on the implementation of the Program to district-level People's Committees which shall report them to concerned provincial-level departments and branches for sum up and reporting to provincial-level People's Committees.

2. Provincial-level People's Committees shall make monthly, quarterly and annual reports on the implementation to the Program to the Program's standing agency at the central level (the Ministry of Labor. War Invalids and Social Affairs), the Ministry of Finance and the Ministry of Planning and Investment according to regulations of the Ministry of Labor. War Invalids and Social Affairs.

Article 7. Implementation provisions

1. This Circular takes effect 45 days from the date of its signing.

2. Any problems arising in the implemen­tation process should be reported to the Ministry of Finance for consideration, amendment and supplementation to suit the situation.-