Scope and target groups for the 5% reduction in recurrent expenditures in 2024.

The resolution states that a 5% reduction in recurrent state budget expenditures will be implemented; retained fee revenue, business revenue, and other retained revenue as allocated at the beginning of 2024 will be used for recurrent expenditures of budget-allocated units under ministries, central agencies, and People's Committees of provinces and centrally-administered cities, after excluding the following items:

1. Expenses related to salaries, wages, and personnel costs.

2. Expenditures in accordance with international commitments.

3. Funding for procurement and repair tasks under contracts for the supply of goods and services signed before the Government issued this Resolution and continuing to be implemented in 2024; and for bidding packages whose contractor selection results were approved before the Government issued this Resolution.

4. Funding for certain key political and specialized tasks will not be cut.

The Government requires heads of budget-using units to determine the amount of budget cuts and savings and submit it to the superior management agency for review and consolidation. Ministers, heads of central agencies, and chairpersons of People's Committees at all levels decide on the amount of budget cuts and savings for their subordinate agencies and units, detailed by expenditure area (including administrative agencies and units that have been granted autonomy and responsibility for the use of personnel and administrative management funds; public service units granted autonomy and responsibility for the performance of tasks, organizational structure, personnel and finance; agencies and units that spend on regular operations from retained fee revenue and retained operational revenue) and submit it to the State Treasury for expenditure control (*).

Compile and report the budget cuts and savings to be submitted to the Ministry of Finance before August 20, 2024.

The resolution states that the funds cut and saved will be managed as follows:

Ministries, central agencies, and People's Committees of provinces and centrally-administered cities shall compile and report the amount of budget cuts and savings to the Ministry of Finance before August 20, 2024. This is to consolidate the total amount of cuts and savings in recurrent state budget expenditures of ministries, central agencies (excluding the Ministry of National Defense and the Ministry of Public Security) and localities for compilation and reporting to the Government, which will then report to the competent authority for consideration and decision.

The funds saved from administrative cost reductions by the Vietnam Social Insurance are remitted to the respective Social Insurance Fund, Unemployment Insurance Fund, and Health Insurance Fund. The funds saved by the Vietnam General Confederation of Labor from the 2% trade union fee carried over to the following year are used as stipulated. Regarding the allocated budget of the State Bank of Vietnam as stipulated in Decision No. 07/2013/QĐ-TTg dated January 24, 2013, of the Prime Minister on the financial regime of the State Bank of Vietnam, the reductions and savings will be implemented when developing the budget allocation plan for 2024.

Regarding the reduction and savings from retained deductible fee revenue as stipulated by the law on fees and charges: Based on the reduction and savings decision of the managing agency, agencies and units shall deposit the reduced and saved funds into the state budget. At the end of the fiscal year, if revenue fluctuates compared to the initial budget estimate, the head of the agency or unit is responsible for reporting to the superior management agency to decide on adjusting the reduced and saved funds as stipulated in (*).

Regarding budget cuts and savings from retained revenue from business activities and other sources: Based on the decision on budget cuts and savings by the managing agency, agencies and units shall allocate funds to the unit's business development fund to increase investment in business development. At the end of the fiscal year, if revenue fluctuates compared to the initial budget allocation, the head of the agency or unit is responsible for reporting to the superior management agency to decide on adjusting the budget cuts and savings as stipulated in (*)./.