How do project management units use State budget funds?

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the State encouraged project management units to increase revenues, save expenses, streamline payroll and increase incomes.

The Circular regulated the management and use of revenues from project management activities of investors and project management units funded by State budget capital (including projects funded with principal development of ODA and preferential loans of foreign donors which are balanced the State budget).

The use of funds saved by investors and management board of project group I has been specified in the Circular.

Accordingly, the cost of project management which is saved can provide the additional income, rewards; and expenditures on collective welfare activities. Within the limits of the source of savings, the project management units shall determine the coefficient of increase of the maximum salary fund 1.0 (one) times higher than the salary level. The rank and position of the State shall be determined to pay additional income to officials, public servants and employees who receive salary from the project management expenses.

In addition, they can provide collective welfare activities, such as lunch, tastings, visits, sickness, retirement, sick leave; support cadres, civil servants and employees on the payroll when reducing payrolls; support repairs of welfare works.

The amount of money saved at the end of the year, which has not yet been used up, shall be transferred to expenditures in subsequent years.

For project management units of group II, especially increased income, the Circular stated that the State encouraged project management units to increase revenues, save expenses, streamline payroll and increase incomes for workers on the basis of completion after fulfilling obligations to the state budget. Based on the financial performance of the year, the project management units shall decide on the total additional payment for the employees in the year to no more than three times of the salary level and allowances for officials, public servants and employees, which are defined by the State.

The additional income coefficient of the leadership position shall not exceed 2 times of the coefficient of income gained in the unit and also in line with the principle of quantity, quality and efficiency of the work. The Director of project management units shall pay income according to the unit's internal spending regulations.

As for the use of financial results of the project management units of group II in the year, annually after paying the expenses, paying taxes and other remittances according to regulations, the difference of revenues and the regular expenditures (if any), the project management units shall use them as the following orders: Deductions of at least 25% for establishment of non-business activity development fund; deductions for setting up the supplementary fund for income shall not exceed 3 times of the salary fund for grades, positions and wage allowances for officials, public servants and employees prescribed by the State.

Reward funds and welfare funds: The deduction levels applicable to these two funds shall not exceed three months' average salary or wage in the year.

This Circular shall come into effect from 15^th September 2017 and replace Circular No. 05/2014 / TT-BTC of 6^th January 2014 of the Ministry of Finance regulating the management and use of management expenses and investment projects using State budget capital.

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