The Circular guiding the mechanism for using regular state budget expenditures to support small and medium-sized enterprises

On 8/8/2023, the Minister of Finance issued the Circular No. 52/2023/TT-BTC guiding the mechanism for using regular state budget expenditures to support small and medium-sized enterprises (SMEs) according to regulations in the Decree No. 80/2021/ND-CP dated August 26, 2021 of the Government.

According to the Circular, the subjects of application are enterprises which are established, organized and operate in accordance with the law on enterprises, at the same time meeting the regulations in Chapter II of the Decree No. 80/2021/ND- CP on the criteria for identifying SMEs; ministries, ministerial-level agencies, and agencies under the Government; the People's Committees of provinces and centrally-run cities (hereinafter referred to as the Provincial People's Committees); agencies and organizations supporting SMEs as prescribed in Clause 4, Article 3 of the Decree No. 80/2021/ND-CP; the party providing products and services to support SMEs as prescribed in Point c, Clause 3, Article 32 of the Decree No. 80/2021/ND-CP; workers working in SMEs; vocational training facilities according to regulations of the Ministry of Labor, War Invalids and Social Affairs; agencies, organizations and individuals involved in the management and use of state budget to support SMEs.

* The funds for implementing support for small and medium-sized enterprises specified in this Circular include:

- Regular state budget expenditure sources, including central budget and local budget according to the budget decentralization.

- Sources of contributions and sponsorships from domestic and foreign businesses, organizations and individuals and other legal funding sources outside the state budget (hereinafter referred to as sources of contributions and sponsorships).

  * The principles for management and use of funds:

- For state budget sources:

+ State budget funding to support SMEs is implemented through state budget estimates assigned to agencies and organizations supporting SMEs. The process of preparing, deciding, assigning estimates, implementing and accounting, auditing, and finalizing the state budget to support SMEs according to the provisions of law on state budget, ensuring the right purpose, target audience, expenditure content, expenditure norms, support levels and principles for supporting are specified in the Decree No. 80/2021/ND-CP, the instructions in this Circular and other relevant legal regulations.

+ Support is based on the ability to balance resources and prioritize support in each period of the annual state budget.

- For sources of contributions and sponsorships: the mobilization, management, payment and settlement of funds must comply with current legal regulations. In case there is an agreement with an enterprise, organization or individual on the use of contributions or sponsorships to pay for state budget support, it shall be implemented in accordance with the agreement.

- The principles for determining costs:

+ For expenditure content with specific standards and norms in legal documents issued by competent authorities: determining costs in accordance with the prescribed regime.

+ For expenditure content that does not have specific standards and norms: determining costs based on specific cases, nature, scope and related factors, with reference to similar costs that have been made within 12 months (if any) up to the time of cost determination.

- Agencies and units that manage and use funds to implement support for SMEs are responsible before the law for compliance with regulations; the reasonableness, validity, efficiency, and economy in using funds; the honesty, accuracy, transparency, and legal completeness of relevant records and documents; the revenue, expenditure, accounting, settlement and record keeping according to prescribed regime.

In addition, the Circular specifically regulates support for small and medium-sized enterprises; arranges, prepares, implements and finalizes state budget funding to support SMEs and organizes implementation.

The Circular takes effect from September 23, 2023 and replaces the Circular No. 49/2019/TT-BTC dated August 8, 2019 of the Ministry of Finance.