National Assembly finalizes salary reform, pension adjustment, abolishes all special income mechanisms

PV DNUM_BBZBBZCACD 09:22

The National Assembly resolved that from July 1, 2024, comprehensive reform of salary policy will be implemented; pensions, social insurance benefits, and monthly allowances will be adjusted; and all financial management and special income mechanisms of State administrative agencies and units will be abolished.

National Assembly leaders participate in voting.

Implementing the program of the 6th Session, on the morning of November 10, at the National Assembly House, the National Assembly voted to pass the Resolution on the State budget estimate for 2024. Vice Chairman of the National Assembly Nguyen Duc Hai chaired the meeting.

After listening to the Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh present the Report on explanation, acceptance and revision of the draft Resolution on the State budget estimate for 2024, the National Assembly voted to pass this Resolution.

The electronic voting results showed that 466 delegates participated in the vote in favor (accounting for 94.33%).

Thus, with the majority of delegates participating in the vote in favor, the National Assembly passed the Resolution on the State budget estimate for 2024.

Allowing the transfer of budget sources to implement 3 National Target Programs to 2024

Resolution to allow the use of the recovered funds temporarily granted in 2022 for some localities to implement the policy of supporting rent for workers with remaining funds, transferring the source to supplement localities lacking resources to implement the policy and finalize the 2023 budget year.

Allowing the transfer of revenue sources, cuts, and savings from the central budget in 2021 to arrange annual public investment estimates and plans in 2023, 2024, and 2025 for projects of the Ministry of Transport and 8 localities.

Allow the transfer of the State budget estimate to implement 3 National Target Programs in 2023 (including development investment capital, regular budget of the central budget and local budget) to 2024 for continued implementation.

In the Resolution, the National Assembly assigned the Government to review and allocate in detail each specific expenditure task to each ministry, central agency, and locality according to Submission No. 586/TTr-CP dated October 20, 2023 of the Government.

Responsible for the accuracy of data, necessity, completeness, validity, compliance with standards, norms, spending regimes and additional conditions, budget allocation and disbursement in accordance with the provisions of the State Budget Law and relevant legal provisions.

For the remaining unallocated capital, the Government is requested to urgently review and report to the National Assembly or the National Assembly Standing Committee for consideration and decision in accordance with the provisions of Resolution No. 70/2022/QH15. After the deadline prescribed by law, it is requested to cancel the budget.

The Government considers and decides to allocate from the 2023 central budget reserve in accordance with the provisions of law to continue implementing, soon completing and putting into use the Nam Mo River embankment project, section through block 4, block 5, Muong Xen town, Ky Son district, Nghe An province.

Vice Chairman of the National Assembly Nguyen Khac Dinh and delegates participated in the vote.

Comprehensive reform of wage policy from July 1, 2024

Regarding the implementation of wage policy, the Resolution resolves that from July 1, 2024, comprehensive reform of wage policy will be implemented according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7th Conference of the 12th Central Executive Committee.

Funding for salary reform is guaranteed from the accumulated salary reform fund of the central budget, local budgets and a part arranged in the state budget balance expenditure estimate.

From July 1, 2024, pensions, social insurance benefits, monthly allowances, preferential allowances for meritorious people and a number of social security policies currently linked to the basic salary will be adjusted.

Abolish all special income mechanisms, apply unified salary, allowance and income regime

For central state administrative agencies and units implementing special financial and income management mechanisms, from January 1, 2024 to June 30, 2024: The monthly salary and additional income increase is calculated based on the basic salary of VND 1.8 million/month according to the special mechanism, ensuring that it does not exceed the salary and additional income received in December 2023 (excluding the salary and additional income increase due to adjustment of salary coefficients of salary scale and grade when upgrading grade and grade in 2024).

In case of calculation according to the above principle, if the salary and additional income in 2024 according to the special mechanism is lower than the salary according to general regulations, then only the salary regime according to general regulations will be implemented to ensure the rights of employees.

From July 1, 2024, all financial management and specific income mechanisms of State administrative agencies and units will be abolished, and a unified salary, allowance and income regime will be applied.

Do not continue to apply the current special mechanism to the regular budget according to the special financial management mechanism (operating expenses, capacity building, modernization, ensuring professional activities, etc.) of State administrative agencies and units. Assign the Government to organize the implementation and report to the National Assembly at the 8th session.

Ministries, central and local agencies continue to implement solutions to create sources for reforming wage policies according to regulations.

Allowing to continue excluding some revenue items when calculating the increase in local budget revenue for salary reform as prescribed in Clause 2, Article 3 of Resolution No. 34/2021/QH15 dated November 13, 2021 of the National Assembly.

National Assembly delegates attending the meeting.

Focus on proactive, reasonable, flexible and effective fiscal policy management

The National Assembly assigned the Government to focus on operating fiscal policy proactively, reasonably, flexibly and effectively; and to coordinate synchronously, closely and smoothly with monetary policy and other policies.

Timely respond to complex fluctuations in the domestic and international situation, maintain macroeconomic stability, control inflation, promote growth, and ensure major economic balances.

In particular, there are solutions to overcome the decline in indicators on the ratio of state budget mobilization to GDP and the ratio of tax and fee mobilization to the state budget.

In addition, the Government needs to promptly submit to the National Assembly projects to amend and supplement tax laws to strengthen revenue management, restructure revenue sources to ensure sustainability; improve the efficiency of revenue management, and expand the revenue base.

Resolutely and effectively implement solutions to combat revenue loss, transfer pricing, tax evasion; trade fraud, especially in digital-based commercial activities; urge the collection of tax arrears, and reduce the rate of tax arrears.

Continue to implement tax administrative procedure reform, promote electronic tax management; strictly implement auction regulations when transferring, leasing public assets, allocating land, and leasing land in accordance with the law.

Scene of the 6th Session, 15th National Assembly.

Research and complete legal regulations on finance in the land sector.

There are solutions to speed up the progress of equitization and divestment of State capital in enterprises, ensuring efficiency and strictness, avoiding loss of State capital and assets in enterprises.

Research and complete legal regulations on finance in the land sector in the spirit of Resolution 18-NQ/TW dated June 16, 2022 of the 5th Conference of the 13th Central Executive Committee, ensuring harmony of interests between the State, land users and investors.

There is a mechanism to reasonably and effectively regulate revenue from land use fees and land rents between the central budget and local budgets; there are solutions to consolidate and enhance the leading role of the central budget.

Only issue policies that increase budget spending when really necessary and with guaranteed resources.

The National Assembly requested to tighten discipline and order, enhance the responsibility of leaders in managing and using finance and budget; operate state budget expenditures according to estimates, ensuring strictness, thrift and efficiency.

Thoroughly save on regular expenditures and expenditures that are not really necessary to ensure resources for natural disaster and epidemic prevention and control, supplement development investment capital and support economic recovery; strive to further increase the ratio of development investment expenditures.

Only issue policies to increase budget expenditures when really necessary and with guaranteed sources; allocate and deliver budget estimates on time according to the provisions of the State Budget Law; improve the quality of investment preparation work, overcome limitations in slow implementation of public investment projects and slow disbursement of public investment capital.

Resolutely transfer capital from slow-progressing projects to projects that are feasible and disbursable but lack capital, and minimize the transfer of resources.

In addition, there needs to be effective solutions to improve the quality of proposals, preparation and approval of ODA projects, and to develop specific implementation plans for each implementation stage.

Review the responsibilities in building unrealistic budgets and ineffective implementation leading to low disbursement of public investment capital. Research and have sanctions to deal with cases of returning annual capital plans due to subjective reasons.

PV