Renovating financial and income management structure of the State administrative authority

illustration imgae. Source: Internet

The directive stated that the implementation of the financial and income management mechanism associated with the characteristics of the State administrative agencies has achieved important results; work quality is improved, better meeting the requirements of management and task performance; State administrative agencies actively use financial resources assigned according to regulations to organise the task performance, work plans, develop human resources and invest in equipment for administrative reform, especially administrative procedure reform; contributing to ensuring income, reasonable compensation, attracting a contingent of civil servants with professional qualifications and high responsibility to serve work; uphold the responsibility of the head; improve the efficiency of using funds associated with the performance of assigned tasks.

Besides such results, the implementation of the financial and income management mechanism associated with specific characteristics still has several limitations and difficulties, specifically the legality of jurisdiction and legal regulations are not uniform, in which the authority of making a decision on financial and income management mechanisms associated with characteristics is prescribed at many levels and in different documents; degree of autonomy in financial resources of authorities are different, creating income disparities between similar positions in units of the same ministry or sector as well as between agencies and units of other ministries and sectors performing the State administrative management function; income distribution in some units is still equal and average; the lack of specific criteria to evaluate work results and efficiency; does not guarantee objectivity, publicity and transparency.

To overcome limitations and inadequacies, improve implementation efficiency and meet the requirements of renovating the financial mechanism associated with the characteristics of the unit in the spirit of the direction of the Party, the Politburo and the Prime Minister requested ministries and agencies to focus on directing and implementing the main contents.

Separation of management mechanism of administrative agencies and public non-business units

The directive clearly states the objectives, principles, and orientations, including renovating the financial and income management mechanism associated with the characteristics of State administrative agencies, which needs to ensure the principle of clearly demarcating roles of State management function, public service provision function, service provision for State management, the separation of management mechanism of administrative agencies and public non-business units and uniformly implement the salary policy.

Continue to promote positive results of the financial management mechanism for State administrative agencies that have legal financial sources in accordance with the law to cover the agency's operating expenses, administrative management agencies have been assigned by competent authorities to stabilise their payrolls and estimate State budget expenditures for a period of 3-5 years.

State administrative agencies that can apply the financial management mechanism are responsible for effectively managing and using allocated financial resources in accordance with prescribed regimes and regulations of the Law on State Budget, Law on Fees and Charges and related laws; uphold initiative, self-responsibility, economical and efficient use of financial resources in performing tasks, ensuring publicity and transparency; strengthen financial discipline in the management of financial revenues and expenditures of the agency.

In 2022, continue to save at least 15%

The directive also clearly states the roadmap and implementation solutions. Accordingly, until the implementation of salary policy reform under Resolution No. 27-NQ/TW, continue to implement the financial and income management mechanism associated with the administrative management authority in accordance with the decision of the authority.

For the State budget revenue and expenditure estimate in , save at least 15% of the cost estimate compared to the assigned estimate in 2020. For the 2022 estimate, continue to save at least 15% compared with the estimate (besides salary expenditure, salary-based contributions under the prescribed regime) to save costs or increase State budget revenue.

Before August 15, , state administrative agencies are required to ensure their own operating expenses from lawful financial sources; the administrative management agencies that have been assigned by authorities to stabilise their payrolls and estimate expenditures of the State budget for a period of three to five years shall evaluate the implementation of the financial mechanism associated with specific characteristics of agencies and units and recommend solutions to ensure the operational efficiency of agencies that apply the financial mechanism associated with the characteristics of the unit when implementing the salary policy reform following Resolution No. 27-NQ/TW (including appropriate solutions to ensure the source for the performance of tasks of spending on investment in equipment, facilities and technical facilities and other necessary expenses other than salary, income) and send it to the Ministry of Finance to summarise, work with relevant ministries and agencies in proposing to renovate the financial mechanism in association with the characteristics of State administrative management agencies. Then reporting to the Government, the Prime Minister for consideration and decision or submit to competent authorities for consideration.

Reviewing and abolishing regime of allowances and non-salary expenditures originating from the State budget

The Prime Minister requested the ministries and sectors are allowed to apply the financial mechanism associated with characteristics to prepare necessary work to implement the above roadmap.

This work should be focused on performing the following tasks: strengthening the inspection and supervision of financial management; use the funds in accordance with regulations, for the right purposes, for the right subjects, effectively, openly and transparently; strictly handle violations.

Reviewing documents issued by ministries and central agencies and submitting them to competent authorities for the amendment to abolish contents related to the regime of allowances and non-salary expenses of officials, civil servants and public employees originating from the State budget (like fees for meetings, fees for the development of legal documents, projects, seminars). In particular, clearly identifying completion time to ensure it takes effect at the same time as implementation of the new salary regime under Resolution No. 27-NQ/TW.

Reviewing and summarising the management and use of civil servants and public employees, ensuring compliance with functions and tasks in accordance with law; arrange public employees or workers with responsibilities and tasks to perform the functions and tasks of State management of sectors and domains.

Analysing, evaluating and proposing solutions and mechanisms to ensure operational efficiency of agencies and units after implementing the new salary policy based on the law on the State budget, fees and charges, and relevant legal provisions; develop the State budget estimate in 2022 of the agencies and units following the above mechanism, send it to the Ministry of Finance to summarise and report to the Government to submit to the National Assembly for consideration on the State budget estimate in 2022 (October ).

The Prime Minister also asked ministries, sectors and agencies to closely coordinate with the Ministry of Home Affairs to finalise regulations on the regime of civil servants and public servants, determine job positions, and the structure of civil servants in management units associated with job titles, positions and professional tasks. At the same time, reviewing and perfecting the mechanism and policy for assessing officials and civil servants associated with salary policy reform to promote responsibility and improve work quality and efficiency.