Reduced need for state financial support

(Baonghean) - Along with the process of economic institutional reform in general, the renovation of the public service sector according to the Resolutions of the Party, the National Assembly, and the Government has been implemented for more than 10 years. In 2002, the Government issued Decree No. 10/2002/ND-CP regulating the financial regime applicable to revenue-generating public service units. In 2006, the Government continued to issue Decree No. 43/2006/ND-CP (hereinafter referred to as Decree 43) replacing Decree 10/2002/ND-CP. Accordingly, the granting of autonomy and self-responsibility to public service units is not only in financial management, but also in performing tasks, organizing apparatus, payroll, and finance for public service units.

Comrade Vo Thanh Hung.

However, in the implementation process, this area still needs radical innovation. Nghe An Newspaper reporter had a conversation with Mr. Vo Thanh Hung, Director of the Department of Administrative Affairs (Ministry of Finance) about this issue, respectfully introducing it to readers.

Reporter: Sir, the innovation of public service units is a major project of the Government, which has a direct impact on the jobs and income of millions of workers currently on the state payroll. Is this correct?

Comrade Vo Thanh Hung: That is correct. After more than 7 years of implementation, the expansion of autonomy for public service units according to Decree 43 has contributed to improving the operational efficiency of this sector; creating conditions for units to proactively use financial resources, labor, and facilities to perform assigned tasks in the spirit of thrift, practicality, and efficiency; units are allowed to expand service activities, increase revenue, and, together with the State budget, gradually improve the quantity and quality of public services; creating conditions for people to have more opportunities to choose and access increasingly high-quality services; and workers' incomes are gradually improved.

Although there has been certain progress, the implementation of Decree 43 also shows that public service units have not been given full autonomy, thereby limiting the autonomy of public service units in expanding development, improving the quality of public service provision, increasing income for employees, and striving to reduce the need for financial support from the State.

Regarding autonomy in performing tasks, organizing apparatus, and staffing, although the regulation has been in place for 7 years, up to now, the Ministries managing the sector and field have not issued documents guiding the implementation of autonomy and self-responsibility for performing tasks, organizing apparatus, and staffing for public service units under their management. Therefore, it is not consistent with the mechanism of autonomy and self-responsibility for finance. Decree No. 43 stipulates that for units that self-insure regular expenses, they are allowed to decide on staffing; however, in reality, the superior management agency still assigns staffing quotas to these units, limiting the autonomy of the unit. The determination of the number of employees of the unit is not based on job positions, so the number of civil servants has increased rapidly in recent times, creating pressure on the state budget. Paying salaries to public service units is a reason for slowing down the progress of salary reform.

Regarding financial autonomy, the assignment of financial autonomy has not encouraged units to have enough conditions to strive for a higher level of autonomy (such as autonomy in both regular and investment expenditures). The allocation of state budget funds is still carried out according to general norms, not really linking the assignment of tasks (according to the quantity and volume of public service provision) with the allocation of funds; not properly encouraging units to increase revenue and reduce expenditures allocated by the state budget; not determining that revenue from the state budget is also the unit's revenue source to assign autonomy; units have not fully accounted for costs, thereby not creating motivation for innovation for public service units. Some public service products of the State still maintain a policy of pricing lower than the necessary cost of providing the service (such as tuition fees, prices of medical examination and treatment services, etc.), leading to the State providing price support for all subjects using public service, regardless of rich, poor, or with different income levels. On the other hand, due to lower revenue than expenses, units do not have the conditions to fully account for expenses and accumulate to reinvest in development and improve the ability to provide public services.

PV: Perhaps among the new autonomy rights, financial autonomy plays a very important role, defining the nature of this radical innovation, right?

Comrade Vo Thanh Hung: In addition to the contents inherited from Decree 43, some of the innovations in the new regulation are: the assignment of financial autonomy to public service units will be based on the level of autonomy in revenue sources (calculating the total revenue sources of the unit, including the state budget); units with high financial autonomy will be assigned high financial autonomy and vice versa. This regulation also aims to encourage units with low autonomy to strive to increase revenue sources to achieve a higher level of autonomy. Accordingly, the draft Decree stipulates financial autonomy of service units according to the following levels: financial autonomy for units that self-insure regular and investment expenses; for units that self-insure regular expenses; for units that self-insure a part of regular expenses (because the price and fees for public service services have not yet fully accounted for costs, and the State has ordered and assigned the task of providing public service services at prices that have not yet fully accounted for costs); Financial autonomy for units guaranteed regular expenditures by the State (according to functions and tasks assigned by competent authorities, with no revenue or low revenue).

In addition, the new Decree supplements the right to autonomy in investment of public service units that self-insure regular and investment expenditures. This provision aims to create conditions to encourage units that are capable of implementing a comprehensive autonomy regime in regular and investment expenditures. The Decree also provides detailed regulations on payment of additional salaries when the State adjusts the basic salary for depreciation of fixed assets included in public service costs; stipulates that units are allowed to set up funds for career development, income supplement funds, reward funds and welfare funds... In particular, public service units are allowed to mobilize capital and borrow capital to invest and build facilities according to regulations and must have a feasible financial plan to repay the loan; be responsible for the effectiveness of capital mobilization and borrowing; Apply financial mechanisms like enterprises (determine charter capital and preserve capital; mobilize capital, invest capital outside the unit; manage, use and depreciate fixed assets according to the enterprise; manage revenue, expenses and distribute profits; implement accounting and statistical regimes like enterprises).

PV: So these units are also allowed to calculate prices and fees for public services, right?

Comrade Vo Thanh Hung: Prices and fees are extremely important issues for public service units to be able to move towards full accounting, thereby moving to a higher level of autonomy. This is the content that Decree 43 has not yet resolved. To overcome this, the draft Decree has stipulated the provisions on prices, fees and roadmap for calculating prices of public service, the list of public service; at the same time, distinguishing public service using state budget funds and public service not using state budget funds. This comes from practical requirements in recent times, when facing increasing pressure in allocating budget expenditures to ensure requirements on infrastructure investment, salary reform, ensuring social security and national financial security, and at the same time improving budget expenditure efficiency, requiring the arrangement and allocation of reasonable resources of the state budget for public service activities; Innovate the state management mechanism for public service activities, gradually eliminate state intervention in the activities of public service units, and reduce state subsidies. At the same time, to promote socialization of public service activities and meet the increasing needs of society, it is necessary to create a more competitive and equal environment between state-owned establishments and establishments invested by other economic sectors.

PV:Thank you, comrade!

Red River(Perform)