Recurrent spending seriously controlled: Deputy PM and MoF Ho Duc Phoc

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Deputy Prime Minister and Minister of Finance Ho Duc Phoc

There will be innovation in budget allocation

Explaining and clarifying issues raised by National Assembly deputies during the discussion session on the implementation of the state budget, the state budget estimation, the central budget allocation plan for 2025... at the 8th session taking place on November 5, 2024, Deputy Prime Minister and Minister of Finance Ho Duc Phoc clarified the issue related to expenditure savings.

Accordingly, regarding investment and regular expenditure, in response to the opinions of National Assembly deputies on not fully allocating the budget estimate and slow disbursement, according to the Deputy Prime Minister and Minister of Finance, this is also a practical issue, requiring the reform of allocating budget estimates, arranging development investment expenditure plans and related issues.

Regarding budget allocation, according to the National Assembly's regulations, it is necessary to complete procedures.

For example, in a construction investment project, if the project has not been approved, the Ministry of Planning and Investment cannot advise the Government and the National Assembly for approval.

Similarly, with recurrent expenditures, there must be an approved estimate, unit price and norm.

During the budget estimation period in September and October, agencies only estimates works so, so they could not make an accurate estimate.

Later, if they want to make accurate estimation, they must submit it to the Government and the National Assembly.

The Deputy Prime Minister and Minister gave an example: the National Assembly has stipulated that the expenditure ratio for science and technology is 2% of the budget, but in reality, for many years it has only reached more than 1% due to procedures related to estimates, unit prices and norms of each field such as education, science and technology, etc.

After the gathering, the Government must continue to report through the National Assembly's agencies, so it is delayed.

Regarding solutions, the Government will innovate in the allocation of both recurrent and investment expenditures.

For example, with recurrent expenditures, after the National Assembly approves, it will be assigned once to the provinces and ministries and agencies so that the units can allocate according to regulations.

The Ministry of Finance will be responsible for checking the implementation.

National Assembly deputies attending the session. Photo: National Assembly

VND7,000 billion saved in 2024

Regarding the saving of recurrent spending, the Deputy Prime Minister said that the savings were mainly in expenses such as business trips, conferences, small purchases, etc.

While expenses for salaries and salary allowances account for 45% of total recurrent expenses, there were almost no savings because the norms were issued by the Government at the beginning of the term.

The Government requested agencies to cut 10% of expenses from the beginning of the term, so the cut was implemented right from the time of budget allocation and requested to reduce another 10% in recent adjustments, bringing the total reduction to 20%.

“We have reported to the Government Standing Committee and the Prime Minister at the Government Standing Committee meeting. We cannot cut any further. Recurrent spending like this is already very economical,” Deputy Prime Minister and Minister Ho Duc Phoc emphasized.

Therefore, in 2024, the Deputy Prime Minister and Minister of Finance said that the Government has proposed that the whole country save about VND7,000 billion from recurrent expenditures, including VND2,000 billion from the central budget and VND5,000 billion from the local budget.

Currently, the Government Standing Committee is directing savings in public investment expenditures through procedures from budget estimates to construction, maintenance, transportation, etc.

These provisions will be included in the bidding documents for organizing bidding.

Explaining the difficulties in disbursing expenditures for national targets, public investment, etc., including the difficulty in the lack of land for leveling, the Deputy Prime Minister and Minister said that due to the regulation that considers land as a mineral, contractors need to apply for an exploitation license like mineral exploitation.

The Deputy Prime Minister and Minister of Finance said that it is necessary to amend the regulations accordingly, or if the old viewpoint is still maintained, it is necessary to stipulate that land and mines granted to contractors constructing the road only for the purpose of building the road, prohibiting selling to outsiders, and closing the mines immediately after completing the construction work.

The Government will submit to the competent authority to decide on amending and supplementing this regulation.