Budget allocation norm decreases gradually according to payroll levels

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The norm of allocation according to staffing criteria for the Supreme People's Court is VND72 million per employee. Photo: VNExpress

Applying the norm of the regression method for ministries and branches

In estimates of expenditure on State management, the Party and mass organisations, specifically the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Justice, the State Audit, and the Government Inspectorate; other ministries and central agencies, criteria for allocation of estimates are based on the number of payrolls assigned by competent agencies on the basis of job positions and civil servant structure in accordance with the functions, tasks and workload of each ministry and central agency. In addition, ministries and central agencies are allocated funds to ensure the payment of salaries, allowances and salary-based contributions according to regulations, funding to ensure specific tasks of each ministry or central agency.

The allocation norm according to the payroll criteria is VND72 million per employee, this is the general norm applied to the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Justice, the State Auditor and the Government Inspector.

For the remaining ministries and central agencies, norms will be applied according to the regression method: the number of employees assigned by agencies to each ministry or central agency is divided into different levels with the size of first level of 100 or less. The budget allocation norm decreases gradually according to levels.

From 100 employees or less, the allocation norm is VND70 million per employee; from the 101st to the 500th employees is VND65 million per employee; from the 501st to the 1,000th employees, the allocation norm is VND61 million per employee and the allocation norm from the 1,001st employees and up is VND57 million each.

Regarding the allocation of expenditure estimates for State management, the Party and mass organisations to specific agencies, units and organisations at the central level, Resolution 01 stipulates that for the offices: do not apply the norm of allocation of recurrent expenditure according to the payroll; the annual State budget expenditure estimates are determined based on the standards, spending regimes and specific tasks of these agencies.

For State administrative management agencies and units that are applying the mechanism of budget allocation policy as prescribed at Point b, Clause 1, Article 5 of the Law on State Budget or applying a specific financial and income mechanism: in accordance with the Resolution of the National Assembly and guidance of the competent authority on the implementation of wage reform under the Resolution No. 27-NQ/TW dated May 21, 2018 of the 12th Central Committee, these agencies and units must apply the uniform salary, allowance and income regime; abolishing the mechanisms and policies on special income. Funding sources continue to comply with the provisions of Point b, Clause 1, Article 5 of the Law on State Budget and laws; specific associations, socio-political-professional organisations, social organisations, socio-professional organisations supported by the state budget in accordance with law.

Based on the payroll assigned by the competent authority and the level of recurrent expenditure according to the allocated norms, ministries and central agencies are encouraged to streamline payrolls and save spending to increase income for officials and civil servants and boost spending on key tasks of agencies and units.

The estimates of expenditures on State, Party and mass management in the following years in the period of budget stability are determined according to the payroll approved by the authority and norms for allocation of expenditures on State, Party and mass management will be adjusted up or down according to the State budget's capacity and submitted by the Government to the National Assembly for decision in the annual central budget allocation plan.

Implement the budget support for 2022 – 2025

Regarding expenditure estimates for non-business fields, in which, for public non-business units that cover their own recurrent and investment expenditures, public non-business units cover recurrent expenditures by themselves, the State budget does not support recurrent expenditure. The unit must fully report on revenue sources and expenditure tasks for the year and the expected plan year; send to superior management agencies to summarise and send to the Ministry of Finance at the same time as formulating annual State budget estimates.

For public non-business units that cover part of their recurrent expenditures by themselves, the State budget will support recurrent expenditures after the units have used the non-business revenues and toll revenues which have been left to spend to perform tasks and provide public administrative services, which have not yet been fully charged.

Implement the budget support for 2022 - 2025 and require a minimum reduction of 15% compared to the period of 2017 - 2021. At the same time, it is required to set aside non-business revenue of the units to implement salary reform, the budget only supports the maximum amount of money for salary reform in proportion to the budget supporting recurrent expenditures.

For public non-business units whose recurrent expenditures are guaranteed by the State, they must apply the same principles, criteria and allocation norms as in the field of state management, party and mass organisations.

Continue to reduce on average 10% direct expenditure from the state budget compared to 2016-2020, except for basic and essential public services guaranteed by the state budget as prescribed in the Resolution No. 19-NQ/ The Central Committee dated October 25, 2017 of the 12th Central Committee of the Communist Party on continuing to renovate the organisation and management system, improving the quality and performance of public non-business units; at the same time, saving 10% of recurrent expenditures from the annual budget increase and arranging from the assigned State budget estimates to reform the salary policy.

The State budget reduces the level of recurrent expenditures for public administrative units for expenditures already included in service prices according to the roadmap for adjusting the service prices of each public administrative sector; spend funds to increase sources of guarantee for policies to support the poor, policy beneficiaries to access public non-business services, create a source for implementing wage reform, increase the spending on procurement and repair, and increase spending on development investment, on that basis, restructure recurrent expenditures and gradually restructure state budget expenditures.

Regarding the allocation of defence and security expenditure estimates, the Resolution stipulates to base on the tasks of ensuring national defense and security, the funding for the implementation of policies and regimes towards people and specific tasks to prioritise the allocation of recurrent expenditures from the central budget every year.