Unifying one focal point for management of state expenditures from October, 2017

	Restructure the source of expenditure - the fundamental solution to balance the budget
	Public debt should be managed by one focal point agency
	State Treasury: Strict control of recurrent expenditure estimates

The Press Conference. Photo: Khac Tiep

According to Mr. Vinh, over the last time, the management of state budget expenditures in the state treasury system has not been unified by one focal point, but was implemented by the two divisions (the spending management division in charge of controlling expenditures for investment capital and the accounting division in charge of recurrent expenditures).

Although this model was relatively suitable with the characteristics of the State Treasury, it still showed shortcomings and limitations such as lack of facilitation to budget-using units, investors, and project management boards in payment transactions with State Treasury units and did not ensure the independent principle between expenditure control and accounting operations.

From the above shortcomings, the State Treasury has researched, developed and implemented the project to unify a focal point for management of state budget expenditures in state treasury system". According to Vu Duc Hiep, Director of the Expenditure Control Department under the State Treasury, after a period of pilot implementation at the Phu Tho and Thua Thien-Hue State Treasuries, the project has gained some positive results. Specifically, the implementation has created more favorable conditions for the budget-using units, investors and project management boards in payment transactions of state budget expenditures with the State Treasuries, a customer only submit a payment request dossier to a State Treasury officer who is in charge of controlling state budget expenditure , where his account was opened (including dossiers related to the expenditure for investment and recurrent expenditure in accordance with the regulations: "one-stop shop”, and the customer will also receive back the result from that teller. A lot of expenditures especially recurrent expenditures, expenditures for social welfare and cash payments, etc. have been solved in the same day

"For the state treasury system, one unified focal point in charge of controlling state budget expenditures on the “one-stop shop” principle will facilitate customers and budget-using units and State Treasury in IT application, account opening, dossier delivery and online payment. The organizational structure of State Treasury at the district level is more streamlined, has not units at the group level. More than 1,300 units at the group level will be reduced, contributing to gradually reducing the current staffing in line with policies of the Government and Ministry of Finance "- Mr. Hiep stressed.

According to Mr. Hiep, in order to ensure the successful implementation of the project, the State Treasury will continue monitoring, supervising, guiding and removing difficulties in the implementation in the localities and organize groups to inspect and supervise state treasuries in the implementation in the purpose of ensuring transactions and payments between units and the State Treasuries comply with the “one-stop shop” principle. The State Treasury will continue to implement administrative reform; complete legal basis, organize training programs and deploying online public services of State Treasury nationwide from November 2017.

It is required to unify the focal point for public debt management

With achieved results, Mr. Vinh affirmed that the project has initially met the objectives, requirements, and tasks set by the Government and the Ministry of Finance.