Saving recurrent expenditure of state budget in 2022

VCN - The quota system of recurrent expenditure allocation has been promulgated by the National Assembly Standing Committee in Resolution No. 01/2021/UBTVQH15 dated September 1, 2021, on principles, criteria and quota for the allocation of recurrent expenditures in 2022. The requirements for saving expenditures have also been mentioned in the Resolution.
The allocation of recurrent expenditures in 2022 must also ensure the principles of thrift and waste prevention
The allocation of recurrent expenditures in 2022 must also ensure the principles of thrift and waste prevention

The budget expenditure quota gradually decreases based on the payroll levels

According to this Resolution, in terms of principle, the development of a quota system for allocating recurrent expenditures of the state budget must be consistent with the state budget balance ability in 2022, the financial plan - state budget for the 2022-2024 period, and the national financial plan for the 2021-2025 period; prioritize resources to implement wage reform following Resolution No. 27-NQ/TW dated May 21, 2018 of the Central Committee of the Party and Resolution of the National Assembly; promote the efficiency and use of state budget, strive to gradually reduce the proportion of recurrent expenditures, contribute to restructuring the state budget, arranging the administrative management apparatus, public non-business units, and arrangement of administrative units at district and commune levels, reducing payrolls, reforming wages and social insurance.

The allocation of recurrent expenditures in 2022 must also ensure the principles of thrift and waste prevention; administrative reform to improve the quality of public services, effectively use the state budget; contribute to renovating financial management for the public non-business sector to reduce the level of direct support for public non-business units.

Putting all recurrent expenditures into administrative expenditure quota of ministries and central agencies with the requirement of absolute savings; reduce expenses for organizing conferences, seminars and delegations on business trips abroad; prioritizing the allocation of funds to the judiciary, the State Audit, and the Government Inspectorate.

Regarding the criteria and quota for allocating estimates of state budget recurrent expenditures to ministries and central agencies, the Resolution clearly stated that the criteria and quotas for expenditure estimates for state management, the Party and organizations; expenditure estimates for non-business fields, defense and security.

In particular, the quota for expenditure estimates of state management, the Party and organizations were regulated in the following direction: the group of the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Justice, and State Audit, Government Inspector; other ministries and central agencies applied allocation quotas following the payroll criteria.

The general quotas for the group of agencies of the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Justice, the State Audit, and the Government Inspectorate would follow VND72 million/staff.

For the remaining ministries and central agencies, the budget allocation quotas would be applied following the regressive method (decreasing based on payroll levels). Specifically, from 100 officials or less, the allocation norm is VND70 million/staff; from the 101th to the 500th official, it would be VND65 million/staff; from the 501st to the 1,000th official, it would be VND61 million/staff and from the 1,001st officials and above, it would be VND57 million/staff.

An average reduction of 10% in direct expenditure from the state budget compared to the 2016-2020 period

For public non-business units that are self-financed partly from recurrent expenditures, the state budget would be allocated to support recurrent expenditures after the units have used non-business revenues to perform tasks or provide public non-business services. At the same time, the support budget will be allocated for the 2022 - 2025 period and requires a minimum reduction of 15% compared to the 2017 – 2021 period as well as the non-business revenue of the units need to save for implementing wage reform.

The budget is only supporting the implementation of wage reform base on the proportion of the budget supporting recurrent expenditure. For public non-business units which are guaranteed by the State for recurrent expenditures, continue to reduce on average by 10% of direct expenditures from the state budget compared to the 2016-2020 period, except for basic and essential public services guaranteed by the state budget, at the same time, save 10% of recurrent expenditure from the annual budget.

As for the criteria and quota for estimates allocation of recurrent expenditure to provinces and cities, the Resolution of the Standing Committee of the National Assembly clarified the criteria and quotas for allocation of expenditures on education; training and vocational training; healthcare, population and family; administrative management; culture and information services.

The allocation quota following the population criteria for radio, television and news services; criteria and quotas for national defense expenditure; social security, order and safety expenditure; economic activities; and local budget reserves.

In 2022, the allocation quotas for education expenditures base on population criteria would be applied for the school age group (from 1 to 18 years old) as follows: the extremely difficult area is VND7,076,200/person; the difficult area is VND4,953,300/person; urban areas is VND3,007,400/person; the remaining areas is VND3,538,100/person.

On the basis of the quota specified in this Clause, in case the rate of recurrent expenditure for teaching and learning activities is less than 19% of the total expenditure on education, additional expenditure will be added to ensure the expenditure ratio on wages, allowances and others (social insurance, health insurance, unemployment insurance, trade union fees, scholarships for boarding ethnic minority students) up to 81% (excluding expenses from tuition collection).

Regarding the local budget reserve, in 2022, the local budget reserve of each locality is 2% of the total local budget expenditure. On the basis of local budget balance expenditure estimates and the actual situation, provinces and cities should proactively arrange local budget reserves following the provisions of the State Budget Law.

According to Minister of Finance Ho Duc Phoc, the goal of allocating resources for recurrent expenditure is to ensure that ministries, central and local agencies have enough resources to perform tasks of state management, socio-economic development, national defense and security, social security regimes following the fields and areas according to current decentralization.

The allocation quotas for recurrent state budget expenditure in 2022 is the basis for the Government to submit to the National Assembly on the state budget estimate and the plan for allocation of the state budget in 2022 according to the provisions of the Law on State Budget.

At the same time, it serves as a basis for the Provincial People's Committee to submit to the People's Council of the same level for making decisions to promulgate quotas on allocation of recurrent expenditures of local budgets and develop local budget expenditure estimates, ensuring compliance with the provisions of the Law on State Budget.

By Hoài Anh/Thanh Thuy

Related News

Revenue from casino contributes about VND9,000 billion to the State budget

Revenue from casino contributes about VND9,000 billion to the State budget

VCN - The management of lottery and casino business activities is one of contents asked by National Assembly delegates to Minister of Finance at the question and answer session took place on the morning of March 18, within the framework of the 31st session of the National Assembly Standing Committee.
Plan of bidding VND400,000 billion of government bonds with term 2024

Plan of bidding VND400,000 billion of government bonds with term 2024

VCN - The State Treasury has just announced details plan of the 2024 government bond bidding by term.
Reduce 5% of recurrent expenditure estimate from beginning of year

Reduce 5% of recurrent expenditure estimate from beginning of year

VCN – The Prime Minister has issued a Directive directing the management of state budget expenditure estimates to save recurrent expenditure and cut unnecessary expenditures to dedicate resources for socio-economic recovery and development.
Striving for 2023 budget revenue to exceed estimate by 3%

Striving for 2023 budget revenue to exceed estimate by 3%

VCN - At this point, the budget collection work is entering its final stage with many efforts from the financial sector. With the goal of completing the estimate and striving to exceed the estimate by about 3%, the financial sector makes all efforts for the sprint stage.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version