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Revenues of public non-business units and expenditure source saved 10% of recurrent expenditure assigned by the State. Photo: T.L

90% of public non-business units assigned autonomy rights

According to the statistics of Department of Public Expenditure under the Ministry of Finance, currently, the number of public non-business units which are assigned autonomy rights accounts for a high rate, about 90% of public non-business units operating with over 50,000 units. Revenues of public non-business units is increasing year by year mainly due to increase in scale and expanding non-business operation and diversification of providing services to society, thereby, attracting the number of beneficiaries of operation of public non-business units.

According to incomplete reports from ministries, sectors and localities, in the end of 2016, the total revenues of public non-business units (including retained revenues) reached over VND 70,000 billion. The revenues of these units and expenditure source saved 10% of recurrent expenditure assigned by the State, contributing to partly offsetting demand on additional salary in accordance with provisions of the Government.

According to Mr. Pham Van Truong, Director of Department of Public Expenditure, together with revenue collection, the public non-business units developed internal management solutions to save cost. According to reports from ministries, central and local agencies, many public non-business units saved the recurrent expenditure to enhance efficiency of their operation (including 143 units under ministries and central agencies saved about 1,020 VND billion, 1,486 units under local agencies saved about VND 650 billion).

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Thanks to strengthening revenue collection, expenditure saving and implementing autonomy mechanism, income and living condition of employees in public non-business units have increased, in which average additional income of employees increased about from 0.5 to 1.5 times of wage grade of these units.

Some public non-business units in the field of university education have paid additional salaries to employees of about 2-3 times more, such as, International University-Viet Nam National University Ho Chi Minh City.

Besides, the autonomy mechanism has helped public non-business units for mobile capital to develop their operation. Thereby, the material facilities of these units have been improved, facilitating diverse expansion of the non-business operation in line with the assigned functions and tasks.

Overcoming limitations of autonomy mechanism

In order to enhance quality and efficiency of public non-business units, the Ministry of Finance urgently improves the Draft Decree on assigning task, ordering or bidding for supplying public products and services from recurrent expenditure source.

The representative of the Department of Public Expenditure said that “the Decree will specify the mode of supplying public non-business units such as assigning task, ordering or bidding to facilitate the implementation; provisions on the State budget management in assigning task, ordering or bidding; responsibility of management agencies at all levels, public non businesses units, product suppliers, monitoring and supervising agencies in the implementation to ensure transparency, publicity and efficiency”.

In 2018, after the Government issued Decrees regulating the autonomy mechanism of public non-business units in the remaining sectors (education and training, vocational education, cultural, sport and tourism, information, media, press and health), the Ministry of Finance will chair with ministries and sectors to develop and issue Circulars guiding implementation of financial autonomy mechanism of public non-businesses units in each sector to have a basis for assigning autonomy rights for these units.

In 2018, the Ministry of Finance and ministries, sectors and localities continues to focus on overcoming limitations and shortcomings and has made an effort to implement targets well, and tasks set out in reforming operation of public services and public non-business units, contributing to accelerating a process of restructuring apparatus, cutting down staff, salary reform, restructuring the State budget and promoting social and economic development in the coming time.