(Chinhphu.vn) – Ms. Nguyen Thi Thu Huong is working at the Hanoi College of Commerce and Tourism, directly under the Hanoi People's Committee. In 2016, the school received compensation, support and reinvestment when the State reclaimed land to implement the Ring Road III expansion project.

Ms. Huong would like to ask,  does this funding source come from state budget or non-budget state capital?

Regarding this issue, The Ministry of Finance has the following opinions

According to the provisions of Clause 4, Article 4 of the Decree No. 01/2017 / ND-CP dated January 6, 2017 of the Government on amending and supplementing a number of Decrees detailing the implementation of the Land Law:

“Article 4. Amending and supplementing the Decree No. 47/2014 / ND-CP dated May 15, 2014 on compensation, support and resettlement when the State acquires land.

4. Add Article 18c as follows:

Article 18c. Handling of property assigned by the State when recovering land and in case of organization of land recovery without compensation for land

1. When the State recovers land and organizations damaged by property assigned by the State to manage the use and must relocate to a new establishment, such organization may use the compensation amount for assets to invest in the new facilities under investment projects approved by competent authorities.

2. Organizations which are allocated land by the State with collection of land use fees or land rent shall pay the lump-sum rent for the whole term of the lease but the paid land use levies and land rents originated from the State budget and if the State allocates land without collection of land use fees when the State recovers land, it shall not be compensated for land but shall be supported in cash if it has to relocate to a new establishment decided by a competent State agency; The maximum support level does not exceed the compensation for land.

3. The Ministry of Finance shall guide the management, allocation and settlement of support amounts specified in this Article”.

According to the provisions of Clause 2, Article 6 of the Circular No. 80/2017 / TT-BTC dated August 2, 2017 of the Ministry of Finance, the management and use of compensation amount for assets assigned by the State for management , use and support amount for cases where agencies, organizations and units have land recovered but are not compensated for land and must relocate to new establishments as follows:

- Amount of compensation for assets specified in Clause 1, Article 18c of the Decree No. 47/2014 / ND-CP and support amount specified in Clause 2, Article 18c of the Decree No. 47/2014 / ND-CP of State budget (central budget for agencies, organizations and units with land recovery under central management; local budgets for agencies, organizations and units whose land is recovered in localities management), the amount of money already remitted into the State budget according to the provisions of this point shall be prioritized in the State budget expenditure estimates according to the provisions of law on the State budget, the law on public investment and relevant laws to cover the implementation of investment projects are approved by competent agencies and people.

- In cases where agencies, organizations and units have investment projects approved by competent agencies or persons or investment policies approved by competent agencies or persons; in which the capital for project implementation is used from the compensation for assets specified in Clause 1, Article 18c of Decree No. 47/2014 / ND-CP and the support amount specified in Clause 2, Article 18c of the Decree Decree 47/2014 / ND-CP as follows:

The amount received into the purpose deposit account at the State Treasury according to the provisions of this Point shall be used to implement investment projects approved by competent agencies or persons according to the provisions of law on the State budget, the law on public investment and related laws.

State Treasuries at all levels (where agencies, organizations and units open deposit accounts for purposes of transactions) shall control, pay and settle investment capital according to regulations on investment in mechanical construction. Copies of the State budget capital source when already included in the assigned budget estimates according to the provisions of law on the State budget; financial agencies at all levels shall implement revenues and expenditures according to law provisions on the State budget.

After implementing the settlement of the completed project, in case of not using up all the amount received into the purpose deposit account to implement the investment project, the agency, organization or unit shall have to pay the remainder into the State budget (central budget for agencies, organizations and units recovered land under the central management; local budgets for agencies, organizations and units recovered land under local management).

Above, the Ministry of Finance hereby guides her on the policy of management and use of compensation amount for assets assigned by the State for management, use and support amount for cases of agencies, organizations recovered land.For specific cases, Ms. Thu Huong based on the provisions of law to comply with regulations.