How to allocate and use funds to implement staff streamlining?

The Ministry of Finance is seeking comments on the draft Circular guiding the determination of funding sources and the preparation of estimates, management, use and settlement of funds for implementing the policy of streamlining payroll.

Accordingly, the preparation of estimates, allocation, use and settlement of state budget funds to implement the policy of streamlining payroll shall comply with the provisions of the State Budget Law and documents guiding the Law. This Circular provides additional guidance on a number of provisions as follows:

Prepare state budget estimates to implement the policy of streamlining payroll

For ministries and central agencies:Annually, based on the implementation of the staff streamlining policy (including the number of staff streamlining subjects and the amount of allowance for each staff streamlining subject, prepared by the head of the agency, organization, or unit directly managing the staff streamlining subject and approved by the competent authority as prescribed in Clause 3, Article 12 of Decree No. 29/2023/ND-CP); the plan to implement staff streamlining in the following year as prescribed in Clause 2, Article 12 of Decree No. 29/2023/ND-CP, direct the affiliated financial planning department to develop a budget estimate for implementing the staff streamlining policy to synthesize in the annual state budget estimate and send it to the financial agency at the same level to submit to the competent authority for arrangement and assignment of budget estimates for implementing staff streamlining in the annual budget estimates of ministries and central agencies.

DFor localities:Based on the implementation of the staff streamlining policy (including the number of staff streamlining subjects and the amount of allowance for each staff streamlining subject prepared by the head of the agency, organization, or unit directly managing the staff streamlining subject and approved by the competent authority as prescribed in Clause 3, Article 12 of Decree No. 29/2023/ND-CP), the plan to implement staff streamlining in the following year as prescribed in Clause 2, Article 12 of Decree No. 29/2023/ND-CP, localities shall develop a budget estimate for implementing the staff streamlining policy for the year and incorporate it into the need to implement salary reform in the annual state budget estimate.

Allocation and use of state budget funds to implement the policy of streamlining payroll

For ministries and central agencies: State budget funds allocated to implement the policy of streamlining payroll are allocated to non-autonomous funding sources of budget-using units.

Based on the list of staff reduction approved by competent authorities, ministries and central agencies proactively use the annual state budget estimates to pay benefits and policies to staff reduction subjects according to regulations.

For localities:The allocation and use of state budget funds to implement the policy of streamlining local staff shall comply with the provisions of the State Budget Law and documents guiding the Law.

Based on the list of staff reduction approved by competent authorities; local agencies and units proactively use the annual state budget estimates to pay benefits and policies to staff reduction subjects according to regulations.

In case ministries, central and local agencies implement staff streamlining in violation of regulations, they shall recover and pay to the budget the costs of implementing staff streamlining, revoke decisions on staff streamlining and arrange for those who are not subject to staff streamlining to return to work; at the same time, consider the responsibilities of relevant agencies, organizations, units and individuals and take responsibility according to the provisions of law for improper implementation of staff streamlining regulations.

Regarding the settlement of expenses for implementing the policy of streamlining the payroll, the draft clearly states that the expenses for implementing the policy of streamlining the payroll are aggregated into the financial statements and settlement reports of the agencies and units annually according to the provisions of the State Budget Law, the Accounting Law and guiding documents.