Amending Decree stipulating financial autonomy structure of public non-business units

The Ministry of Finance is consulting on a draft Decree amending and supplementing a number of articles of the Decree stipulating the financial autonomy mechanism of public non-business units. Source: Internet

The Ministry of Finance said that the implementation of Resolution No. 19/NQ-TW on continuing to renovate the organizational structure and management system, improving the quality and performance of public non-business units and Resolution No. 27-NQ/TW dated May 21, 2018 on reform of salary policy for cadres, civil servants, public employees, armed forces and employees in enterprises (Resolution No. 27-NQ/TW); the Ministry of Finance has chaired and coordinated with relevant ministries and sectors to submit to the Government for promulgation Decree No. 60/2021/ND-CP dated June 21, 2021 stipulating the financial autonomy mechanism of public non-business units.

However, due to the serious impact of the Covid-19 pandemic on the socio-economic situation, on November 13, 2021, the National Assembly approved Resolution No. 34/2021/QH15 on the state budget estimate for 2022. In particular, Clause 1 of Article 3 stated that: “the implementation of salary policy reform specified in Clause 3, Article 4 of Resolution No. 23/2021/QH15 of the National Assembly is put off; prioritize to adjust pension for people who retire before the year of 1995”.

Accordingly, when approving the financial autonomy plan under the provisions of Decree No. 60/2021/ND-CP, public non-business units would not immediately pay income to employees following the new salary mechanism in Resolution No. 27-NQ/TW and Decree No. 60/2021/ND-CP. Besides that, in 2020-2021, the Covid-19 pandemic greatly affected the revenue of public non-business units, especially in the health sector and the field of vocational training and education.

Therefore, the assessment of the autonomy plan of the previous period in order to propose the autonomy plan for the next period will not ensure completeness and objectivity, thereby affecting the determining the degree of autonomy of the units in the next stabilization period.

Faced with that situation, the Ministry of Finance reported to the Prime Minister and the Government about difficulties in the implementation of Decree No. 60/2021/ND-CP and proposed to the Prime Minister to allow public non-business units to continue implementing the approved autonomy plan until the end of 2022.

Recently, to continue implementing the guidelines of the Party, National Assembly and Government on renovating the management structure and operation mechanism of public non-business units, focusing on financial autonomy, the Ministry of Finance announced to consult a draft Decree amending and supplementing a number of articles of the Government's Decree No. 60/2021/ND-CP stipulating the financial autonomy mechanism of public non-business units.

The purpose is to concretize the guidelines of the Party, the National Assembly and the Government on reforming the management and operation mechanism of public non-business units, focusing on basic financial autonomy; create a synchronous and consistent legal basis with current legal documents.

In addition, the draft Decree is expected to overcome some limit ations in the implementation of Decree No. 60/2021/ND-CP; creating a premise to promote the process of renovating the financial mechanism of public non-business units, thereby improving financial autonomy and strengthening the state budget management following the output results through assigning tasks, ordering or bidding for providing public non-business services using the state budget.

The Ministry of Finance said that the development of the draft Decree aimed to ensure consistency and synchronization with current legal documents and meet the practical requirements of public non-business units in different fields.

The draft will also inherit the relevant contents of Decree No. 60/2021/ND-CP; at the same time, overcome problems and obstacles in the implementation process due to the impact of the Covid-19 pandemic.