Allocating administrative expenditure for State vehicles

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Mr. Tran Duc Thang.

As the Customs Newspaper reported, from October 1, 2016, the Ministry of Finance will officially allocate administrative expenditure for State vehicles for the title of the Deputy Minister, and leadership titles with the coefficient of 1.25 (the Director General or equivalent).

At a press conference on September 27, 2016, in response to the question "Why does the Ministry of Finance allocate administrative expenditures for a certain number of State vehicles instead of all State vehicles?", Mr. Tran Duc Thang, the Director of Public Asset Management Department, under the Ministry of Finance said that allocating administrative expenditure for State vehicles had been applied for a long time but so far, this regulation had been based on voluntary spirit, instead of mandatory rule.

The Ministry of Finance is the first agency issuing a decision to allocate administrative expenditures for State vehicles for the title of the Deputy Minister, Director General or equivalent. Because it was issued in a transitional period, the Ministry of Finance has been quite cautious. Therefore, after a certain time of implementation, the Ministry of Finance will review to adjust or expand.

Besides, allocating administrative expenditure for State vehicles means reducing the number of vehicles and the driving forces. This will take a certain time to calculate but cannot immediately "dissolve".

Thang said that there was no specific calculation on how much State budget would be saved under the new regulation. However, Mr. Tran Duc Thang stated: The number of vehicles for titles of leadership is about 901 cars, while the total number of State cars is 37,000. Thus, we may not save the State budget much.

"We are studying the allocation of administrative expenditures for State vehicles in some areas instead of buying a new car. This will be a direction to bring high efficiency. Regarding the allocation of administrative expenditures for State vehicles for titles of leadership, it may not gain much savings, but create a huge positive impact", Mr Thang said.

In addition, a representative of the Ministry of Finance said that we should have a specific roadmap on the basis of local conditions, locations, the development of private vehicles, public transport and particularly the ability to ensure security and safety for leaders.

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The Public Asset Management Department has also been researching the replication of the allocation of administrative expenditures for State vehicles effectively. At least, when the Decree guiding the Law on Assets (expected to be approved by the National Assembly in May, 2017 and effective from January 1, 2018), the Ministry of Finance will propose specific mechanisms for this issue.