Many units under the Ministry of Finance save costs thanks to allocated expenditures

There were 26/30 public service units under the Ministry of Finance that saved 16% of the total expenditures allocated. Picture: Thùy Linh.

According to the Ministry of Finance, the detailed provisions of allocated expenditures in the internal spending regulation have helped budget units under the Ministry reduce the volume of payment records.

Specifically, in the past, when paying for working trip allowances, staff must have 4 vouchers, including travel papers, room rental invoices, car rental invoices, and payment requests for payment. Since using allocated expenditures, the staff only needed travel papers and payment requests. The volume of payment records under the form of allocated expenditures is small and simple, helping quicker payment process. Document verification and payment processing are much quicker than actual billing.

In addition, the package budget has help the units to build up the budget that is close to the actual implementation of the tasks in the year, avoiding being passive in the allocation of funds for the performance of tasks. Allocated expenditures also create transparency, publicity in spending organization at the unit, enhance the thrift and fight against wastefulness in the use of funds to reserve the sources of increased incomes, welfare of the laborers.

However, during the implementation, the units in the Ministry faced some difficulties and problems. For administrative agencies, the fixed expenditure package has allowed the budget units to decide on expenditures but must comply with the norms promulgated by the State (in principle, they are only equal or lower than the prescribed ones). While market prices fluctuate continuously and tend to increase over the years, the recurrent spending norms apply over many years, so it sometimes affects the performance of the unit's task (i.e remuneration for lecturers and reporters according to Circular No. 139/2010/TT-BTC is too low, and it is difficult to invite qualified lecturers for teaching and professional training).

Besides, the Ministry of Finance cites difficulties in applying the provisions of Joint Circular No. 71/2017/TTLT-BTC-BNV. Specifically, the Circular No. 71 states: “When specific activities are not provided for in legal documents, the head of the agency will be entitled to decide on the level of expenses corresponding to the affairs of the sectors which is similar to the areas as prescribed in legal documents, but it must not exceed the prescribed spending norms and must be specified in the internal spending regulations or be decided in writing by the head of the agency that is not yet stipulated in the Regulation on internal spending “.

However, in fact, when raising a particular expenditure, it is hard to find legal documents regulating similar work, therefore, the expenditure contents are provided in the internal norms of the units under the Ministry are still in line with the expenditures stipulated by the State management agencies.

For public service units, the Government issued the Decree No. 16/2015/ND-CP stipulating the autonomy mechanism of public service delivery agencies in replacement of the Decree No. 43/2006/ND-CP. At present, only the Decree stipulates the autonomy mechanism of units in the field of science and technology and other public service units; while the Decree regulating the autonomy of other sectors (education, training, vocational training, health care, culture and information) has not yet been issued, the units in these fields are still implementing the financial autonomy under the Decree No. 43.

In order to make payment in a more favorable allocated expenditures, the Ministry of Finance recommends that administrative agencies should continue to maintain the regulations on autonomy and self-responsibility in using payroll and budget in administrative management of state agencies.

The Ministry also requested the State management agencies to timely adjust contents and cost norms related to administrative expenses in line with the market price situation at different periods so that the units could have a basis to build regular expenditures for regular expenditure.

For public service units, the Ministry of Finance would like ministries and branches to promulgate the circular guiding the implementation of the Decree stipulating the autonomy mechanism of public service units in each field under the guidance of Decree No. 16/2015/ND-CP.