State Treasury tightly controls Budget

In 7 months of the year, the State Treasury has refused to spend the amount of about 23 billion. Photo: TH

In particular, in the first 7 months of 2016, State Treasury had recurrent expenditure of 401,766 billion VND, reached 48% in 2016; and capital expenditure of more than 111,372 billion VND, reaching 36% of the planned allocation of State funds in 2016.

In particular, through the control of State budget expenditure, in the first 7 months of this year, the State Treasury has rejected proposals for using the Budget from many units, investors and project management boards, of 23 billion VND. The rejected amount was due to improper payment requests according to the current law as well as insufficient records and inapropriate billing procedures prescribed by the Ministry of Finance.

By following the instructions of the Prime Minister’s in Directive No.22 / CT-TTg, State Treasury units adamantly refused to pay for the regular budget allocated to the first estimation unit budget but till the 30th June 2016 the units were unallocated or without implemented yet, the estimates have not been approved, have not done any work yet bidding organization.

Moreover, according to the reports, in early 2016, the State Treasury has presented multiple solutions to contribute to accelerated disbursement of public investment in 2016. Furthermore, the General Director of State Treasury also issued an instruction on reinforcing discipline in performing financial and budget tasks as well as documents to strictly control State Treasury’s system. In particular, focusing on the content of expenditure; purchases of automobiles; expenditure to maintain the operation of agencies and units; and expenditures from ODA and preferential loans from donors under the 2016 plan.

Besides, the State Treasury system has performed its role well through the development of mechanisms to control regular expenditures of the state budget through the State Treasury. This is one of the provisions that the Ministry of Finance set out, forcing each unit using state budget to comply. Also, the State Treasury implemented strict control of spending units on base unit records and documents sent to the unit.

For capital expenditure, the State Treasury has actived and sought advice from the Ministry of Finance in developing mechanisms to manage and control capital expenditures. In particular, controlling capital expenditures in construction on the direction of new reform. So, it has met the requirements and objectives of controlling expenditures strictly in order to ensure safety, efficiency, contributing to the improvement of public investment by the state, and meeting the requirements of new management method under the Investment Law.