Striving to reduce the number of public non-business units under Ministry of Finance

The Ministry of Finance strives to reduce from 3% - 5% of the number of public non-business units

Increasing the autonomy of public non-business units

In Report No. 78/BC-BTC on reforming the management mechanism and reorganizing the system of public non-business units under the Ministry of Finance, the Ministry of Finance said the Ministry has 30 public non-business units that by December 31, 2021, including; 10 public non-business units under the Ministry (4 public non-business units serving the state management specified in Decree No. 87/2017/ND-CP, six other public non-business units), 12 public non-business units of the General Department, four public non-business units of the Department under the Ministry, four public non-business units of the Department under the General Department.

Implementing Conclusion No. 64-KL/TW dated May 28, 2013 of the 7th Plenum of Central Committee (XI session) and Resolution No. 19-NQ/TW dated October 25, 2017, the Ministry of Finance made arrangements, planning the network of public non-business units in order to streamline the apparatus, improve the quality and efficiency of operations, enhance financial autonomy for the public non-business unit, ensure recurrent expenditures, and contribute to operational autonomy and rearranging the apparatus and staff.

As a result, the number of public non-business units under the Ministry of Finance has decreased from 36 units (in 2015) to 26 units (excluding four specialized project management units) compared to today (equivalent to a reduction of 28% public non-business units) due to reorganization or dissolution.

Specifically, it has already merged and dissolved to reduce two units belonging to the Ministry; dissolved seven members of the Department; dissolved one unit of the General Department; dissolved one unit of the Department under the General Department; established one unit under the Department under the General Department.

In general, in the period 2015 - 2021, the Ministry of Finance actively researched, thoroughly grasped and directed the organization to strictly implement the Party's guidelines, resolutions, directives, regulations, policies and laws of the Party and the State on the mechanism of self-control and self-responsibility for the finances of the public non-business unit under the Ministry.

On this basis, the Ministry of Finance promptly promulgated documents related to the implementation of financial autonomy for its subordinate units based on its authority, contributing to creating favorable conditions for promotion, encouragement and support units to renovate the organization and management, improving the quality and efficiency of operations, improving the degree of autonomy, gradually reducing the proportion of state budget expenditures for high-ranking units in order to restructure the state budget, improve the salary.

In the period 2015-2021, the Ministry of Finance did not have public non-business unit which is transformed into a joint stock company or transferred to other ministries and local authorities for management.

Striving to reduce from 3% - 5% of the number of public non-business unit

To promote the achieved results, as well as to continue to innovate the management mechanism, arrange and strengthen the whole apparatus, and improve the operational efficiency of the high-quality units, the Ministry of Finance has set specific goals for the 2022-2025 period and the 2026-2030 period.

Specifically, in the period 2022-2025, the Ministry of Finance set out the basic goal of completing the arrangement and consolidating the system of public non-business units under the Ministry of Finance, striving to reduce the number of public non-business units by 3% - 5% compared to 2021; reduce by 5%-10% of the public non-business unit because the state budget guarantees recurrent expenditures compared to 2021; reduce by at least 10% the number of people who work for salaries from the state budget at the public non-business units compared to 2021, and an average reduction of 10% in direct expenditures from the state budget for public non-business unit compared to the period 2015-2021.

In the period of 2026 - 2030, keeping the system of public non-business units under the Ministry of Finance stabilized; focusing on renovating the management mechanism and improving the operational efficiency of the public non-business unit.

To realize the above objectives, the Ministry of Finance will develop and submit to the Prime Minister a network planning on the network of public non-business units and a list of public non-business services using state budget in the financial sector; promulgate economic - technical quota under its competency of public non-business services funded by the state budget of the Ministry of Finance.

Along with that, continuing to review and perfect the system of public non-business units under the Ministry of Finance in line with the planning by sectors and fields, meeting the specific management requirements of the Ministry of Finance; perfecting the organizational structure of the apparatus inside each unit in the direction of streamlining, promoting the application of advanced science and technology.

The Ministry of Finance will also develop and complete the system of job positions at the public non-business unit under the Ministry of Finance; to renovate the mechanism for determining and assigning the number of people working at the public service units, which is fully or partially covered by the state budget.

Classifying civil servants and rearranging the civil servant structure in the direction of professional positions, accounting for at least 65% of the total number of positions in the unit; renovating mechanisms and methods of recruiting, using and managing a contingent of public employees; implementing policies to attract people with good expertise and skills to work in the public non-business unit.

The Ministry of Finance set out the task of completing the financial mechanism in the direction of clearly identifying the performance of political tasks assigned by the State with business and service activities of public non-business units; switch from supporting non-business units under the mechanism of taking expenditures minus revenues to the mechanism of the State order, assigning tasks to provide public administrative services based on output quality or bidding for non-business service; classifying public non-business unit based on their level of financial autonomy to decentralize and increase the initiative for public non-business unit.

In particular, the Ministry of Finance will strengthen its responsibilities and assign sufficient authority to the Management Council in order to perform the ministry's management role in the public non-business units effectively and substantively, as well as renovate management methods and improve the management capacity of public non-business units. This will ensure strictness and efficiency, and to contribute to improving the quality of public service delivery activities. Researching and applying the corporate governance model to the public non-business units to ensure recurrent and investment expenditures.

At the same time, it is necessary to strengthen publicity, transparency and accountability of public non-business units; promoting the inspection, supervision and strictly handling cases of violations, and low efficiency in tasks performance.