Centralized purchasing: Saving 30,000 billion VND per year for State Budget

When the centralized purchasing method is operated professionally, it reduces the apparatus and payroll in public procurement. Source: Internet

Saving hundreds billion

The most effective outcome, which can be seen clearly, is the saving of hundreds of billion for the State Budget. According to the aggregate data, the difference between the estimate and the actual data of procurement by ministries, sectors and localities participating in the pilot is over 467 billion VND. This result is not only reflected in the reduction in the spending in large batches, but also on good quality of the inputs, consistent purchase prices, and technical similarities. If the scope of application is expanded, the difference and efficiency of public procurement will be much larger.

In addition, the pilot centralized purchasing has formed a system of legal documents, creating a legal basis for the procurement of assets and goods in a concentrated manner: adjusting from planning, delivery of the procurement plan, the plan for the organization of the procurement, the organization of bidding for the procurement and hand-over of assets and goods to the unit for management, use, warranty and maintenance of the purchased assets; publicity of procurement results, handling of violations, and the responsibilities for the implementation...

On the basis of capacity conditions, with the capability of providing goods and services, policy and mechanism on management of budget and management of state assets, the implementation of centralized purchasing at ministries and in localities have created a change in awareness, raising the sense of responsibility of heads of authorities and units using state assets in a thrifty and efficient manner.

Not only that, the purchase of assets and goods in a centralized manner has met the requirements for modern equipment and has been synchronous in terms of assets; contributed to renovating management technology in the direction of administrative reform, raising the efficiency of state management, especially with the provision of information technology and specialized equipment in the Customs sector, the State Treasury, Health and Education.

Public assets are managed and used more and more closely providing comprehensive savings to the state budget. The purchase of public assets must comply with the criteria, norms, plans and estimates of the state budget already approved by competent authorities. The ministries, branches and localities must promulgate standards and norms on specialized machinery and equipment (types and quantities) of equipment for agencies, organizations and units, which shall serve as a basis for the implementation of procurement, management and disposal of assets.

The ministries, branches and localities have actively carried out the procurement of state property in a concentrated manner, ensuring compliance with standards, norms, regimes and saving efficiently.

Only in 2017, there were 28 ministries, sectors and 61 localities that announced the list of assets implemented in the centralized purchasing method. Some ministries and localities have achieved good results, such as: the Ministry of Health has saved 477 billion VND when organizing a bid for centralized purchasing of generic drugs and patent medicines. Hanoi City implemented centralized purchasing for 65 packages including: procurement of office equipment, desks and chairs for students; procurement of medical equipment with the total value of 50,844 billion VND, a reduction of 231 billion VND over the registered estimate. Yen Bai saved 918 million VND, Lai Chau saved 12.27 billion VND ...

According to the Ministry of Finance, the implementation of state-owned asset procurement in a centralized manner has created a shift in perception, enhancing the sense of responsibility of heads of authorities and units for using state assets efficiently; At the same time, this method contributes to ensuring strict management and use of state property in accordance with the law, avoiding the situation of procurement of assets in excess of standards and norms.

Contribute to the reduction of the apparatus

Recently, when the Law on Management and Use of Public Assets came into being, the procurement of public assets is carried out in the form of centralized purchasing or distributed procurement. In particular, the centralized purchasing method is compulsory for assets on the list of centralized purchasing assets in accordance with the law on bidding.

In order to continue the effective implementation of this procurement method, the Ministry of Finance has asked the ministries, central agencies and provincial people's committees to review the list of centralized purchasing assets of their units for promulgation, amendment and supplement, for ensuring that the assets are included in the list of centralized purchasing satisfy the conditions prescribed by law and the reality of the ministries, branches and localities; At the same time, centralized purchasing assets belong to the list of centralized purchasing of ministries, branches and localities in accordance with the law.

Mr.Tran Duc Thang, Director General of Public Property Management, Ministry of Finance, said that the savings account for about 15% of the total procurement value, that is saving 30,000 billion VND per year for the state budget due to the large purchase prices being reduced. It also reduces the number of clues involved in procurement and significantly reduces the cost of bidding.

In addition, the implementation of centralized purchasing has overcome the status of purchases in excess of the standards, norms, exceeding the actual demand, luxury purchases and insufficiency; Limiting the negative impact on the public procurement due to the deployment of professional, public, transparent procurement. When the centralized purchasing method is operated professionally, it reduces the apparatus and payroll in public procurement.