Final Settlement of Investment Capital from the State Budget by Fiscal Year

The Circular stipulates the finalization of the state budget investment capital usage according to the annual budget year, including: preparation, submission, approval of finalization, appraisal, notification of appraisal results, and final adjustment of finalization.

The Circular clearly states that at the end of the budget year, agencies, organizations, and units involved in the implementation of the state budget capital investment plan for the year must close their accounting books and prepare finalization reports as prescribed. The deadline for adjusting the finalization of the state budget is January 31 of the following year. Advances that meet the expenditure conditions, volume, and work completed by December 31 of the previous year, and as allocated in the budget estimate, must be spent and paid by January 31 of the following year and be accounted for and finalized in the previous year's budget.

The Circular also stipulates the contents of the annual state budget capital investment finalization report.

The types of state budget capital investment plans for which finalization reports are prepared annually include: state budget capital investment allocated by the State within the year; state budget capital investment of previous years' plans approved by authorized agencies to be carried forward to the finalization year for implementation and payment.

For capital investment authorized by competent agencies to be advanced from the next year's capital plan, it is not required to prepare an annual finalization report but to prepare a comprehensive report on the implementation and payment of capital within the year for financial agencies at all levels to monitor and manage as prescribed.

The payment capital included in the annual finalization report consists of: the total payment capital for the completed volumes of investment projects assigned in the plan year, including payments in the form of recorded receipts and expenditures or foreign currency payments from January 1 of the plan year until the final adjustment finalization deadline.

Payment capital for the completed volumes of investment projects funded by the previous year's plan that is authorized to be carried forward to the next year for implementation and payment, including payments in the form of recorded receipts and expenditures or foreign currency payments from February 1 of the plan year to the final adjustment finalization deadline.

Payments from February 1 of the plan year to the final adjustment finalization deadline for advances under policies not yet recovered from the previous years transferred to the plan year, after deducting the unrecovered policy advances from the previous years submitted for reduction adjustments within the year (if any).

Foreign capital included in the annual budget finalization consists of: foreign capital already recorded in receipts and expenditures and foreign capital paid under domestic financial mechanisms (if any), and units will report separately for projects with foreign capital paid under domestic financial mechanisms similar to the form with foreign capital.

Circular 85/2017/TT-BTC takes effect from October 1, 2017, and applies from the 2017 budget year, replacing Circular 210/2010/TT-BTC dated December 20, 2010, of the Ministry of Finance, stipulating the finalization of basic construction investment capital from the state budget according to the annual budget year.

Source: phuyen.gov.vn

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