Forms of control and recurrent payments from the State Budget through the State Treasury in Vietnam

Forms of control and recurrent payments from the State Budget through the State Treasury in Vietnam

Pursuant to the provisions of Article 4 Circular 62/2020/TT-BTC, the State Treasury shall control and make regular payments from the State Budget through the State Treasuryin Vietnam in the following forms:

1. Pay first, control later:

Pay first, control later is a payment form applied for each installment payment of multi-payment contracts, except for the final payment; in which, the State Treasury receives the dossier and completes the payment procedure for the beneficiary within 01 working day from the date of receipt of a complete and legal dossier; simultaneously, it sends 01 Debit notice to the unit to confirm the payment has been made and sends 01 Credit notice to the unit (if the beneficiary unit opens an account at the State Treasury).

Within 01 working day from the date of payment, the State Treasury shall control the dossier according to prescribed policies.

In case, after the control, it is detected that the expenditure does not comply with the prescribed policies, the State Treasury shall issue a written notification of expenditure control results (as per Form No. 01 attached to Circular 62/2020/TT-BTC) to the budget-using unit; thereafter, it shall handle the recovery by reducing the payment value in the next subsequent payment. If the next subsequent payment is not sufficient in volume/estimate for deduction, the State Treasury shall perform the recovery to reduce State Budget expenditure (in case the budget has not been settled) or recover and pay to the State Budget (in case the budget has been settled) as prescribed and account for it accordingly in the State Budget chapter and budget year.

2. Control first, pay later:

Control first, pay later is a payment form applied for all expenditures (except for those applied under the pay first, control later form mentioned above); in which, the State Treasury shall control and make payments within 02 working days after receiving a complete and legal dossier as prescribed.

More details can be found in Circular 62/2020/TT-BTC, which comes into effect in Vietnam from from August 6, 2020.

Le Vy

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