Responding proposals of constituents: increasing work-trip allowances

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After 7 years of implementation according to former regulations, the expenditure for a business trip was increased in accordance with the new situation.

Increasing work-trip allowances in accordance with new situation

Concerning the work-trip allowances, in order to ensure the expenditures and work-trip allowances of state agencies and organizations to fit with reality, save expenses, prevent wastefulness, create initiative and flexibility in the estimates allocated by competent authorities to implement tasks from October, 2016, the Ministry of Finance sent written proposals to ministries and central agencies and local agencies on commenting the draft circular on work-trip allowances and conference expenditures (replacing Circular No. 97/2010/TT-BTC dated 6 July 2017 on work-trip allowances and conference expenditures applicable to state agencies and public non-business organizations).

Then the new Circular was promulgated on 28 April 2017 and will officially come into effect on from 1 July 2017. In this new circular, the Ministry of Finance has increased some levels of expenditures to fit with the reality, such as the monthly package work-trip allowance for cadres who regularly go on work trips, the level of expenditure for stay allowance and package payment of rents for lodgings in work-trip destinations.

Circular No. 40/2017/TT-BTC (replacing Circular No. 97/2010/TT-BTC) on work-trip allowances, conference expenditures increased levels of expenditures for work-trip allowances of cadre, civil servants and officers.

For example, the stay allowance for each cadre on work-trip is 200.000 vnd/day, increasing 50,000 vnd compared to former circular (150,000 vnd/day). A cadre on work-trip at sea and islands is entitled to the stay allowance of 250,000 vnd/person/day (former 200,000 vnd/person/day).

The payment of rents for lodging on work-trip destination was also increased under the package allowance. Leaders of ministerial, deputy- ministerial or other equivalent titles who are entitled to a post-based allowance coefficient of more than 1.25 shall receive a package level of 1,000,000 vnd/person/day regardless of their work-trip destinations. The former package level was 900,000 vnd/person/day.

Besides, responding the proposals of the constituents, the Ministry of Finance also stated that the new circular also improve the autonomy of ministries, central and local agencies in stipulating the specific work-trip allowance and conference expenditures applicable for their sub-agencies and organizations.

For ministries and central agencies: the payment level in this circular is maximum payment level as a basis for ministries and ministerial-level agencies and other central agencies to estimate the work-trip allowances and conference expenditures. Ministers and Heads of ministerial-level agencies and Government agencies and other central agencies provide specific expenditures for their sub-agencies and unit in accordance with the allocated state budget estimates and another legal fund.

For local agencies, People’s Council of centrally run cities provides specific work-trip allowances and conference expenditures for their sub-agencies and unit in accordance with their local budget and reality.

Agencies are granted individual autonomy in deciding expenditures for guest reception

The Ministry of Finance answered that the expenditures for foreign guests and domestic guests working at agencies and organizations are implemented according to Circular No. 01/2010/TT-BTC dated 06 January 2010 of the Ministry of Finance on spending regimes for reception of foreign guests working in Vietnam, for national conferences and seminars in Vietnam and for reception of domestic guests.

The Circular No. 01/2010/TT-BTC on the contents and expenditure norms for reception of foreign guests working in Vietnam and for domestic guests working in state agencies and organizations using state budget basically meets the foreign relation of the agencies and organizations.

Heads of agencies and organizations are granted autonomy in deciding the expenditure norms in accordance with reality.

In particular, for norms on accommodation for foreign guests working in Vietnam, Circular No. 01/2010/TT-BTC stipulates: When it is necessary to rent rooms beyond the maximum norms described in the circular to meet special foreign relation requirements, heads of host agencies or units may decide on the expenditure level for accommodation in the economical spirit and within the budget estimates allocated by competent authorities.

For expenditure norms for domestic guests, the clause 2, Article 4 of Circular No. 01/2010/TT-BTC stipulates that the provincial level - People’s Committees of centrally run cities or provinces will base on local conditions and budgets to specify guests entitled to be invited to meals for each provincial agency and submit them to provincial-level People’s Council before promulgation.

The spending levels for the preparation of the legal documents. VCN- The Ministry of Finance has issued Circular 338/2016/TT-BTC of the regulations on cost estimates, management, use, ...

Ministers and heads of ministerial-level agencies and Government agencies specify guests entitled to be invited to meals and expenditure levels suitable for operations of their agencies and ensuring thrift and effectiveness.