Solving the financial problem for university autonomy

VCN- In the context that the Ministry of Finance is restructuring the state budget, especially for recurrent expenditures for public service delivery agencies, in the coming time, expenditure for higher education will also be increased, restructured with the promotion of a bidding mechanism associated with quality output.
solving the financial problem for university autonomy
State budget will be spent on high quality institutions of university education. Picture: ST.

Spending nearly 173 trillion VND for university education

Financial sources for university education include state budget and legal revenues of university education institutions. Over the past years, the state budget has secured 20% of total state budget expenditure on education and training, including university education. According to the Ministry of Finance, from 2013 to 2017, the state budget has spent VND1,120,355 billion on education and training, of which VND 172,905 billion was spent on university education.

In fact in recent years, state budget spending on higher education has been more limited because of the limited state budget expenditure. Besides, there are also some difficulties on the basis and mode of spending state budget for university education.

According to Pham Van Truong, Director of the Administrative and Financial Department, the first disadvantage is that the basis for allocation of state budget is not linked to quality criteria and outputs, and it is also based on the ability of the state budget and other inputs. In addition, our country has not yet developed a policy of allocating state budget based on the mode of procurement and procurement of public service delivery, despite the relevant legal documents.

According to the representative of the Department of Finance and Public Administration, university education is completely capable of financial autonomy and is being guided by the general policy of the Party and State on promoting autonomy for higher education, including financial autonomy due to other legal sources. For example, in addition to revenue from tuition fees, schools also have revenue from training services; joint ventures associated with businesses ... However, according to the schools, the current tuition fees are not consistent with the actual training costs of the groups and levels of training. For public higher education institutions, the pricing of training services at the present time does not fully cover the actual costs incurred (wages, direct costs, management costs, depreciation costs) and fixed fees are low, not close to reality. Low tuition fees are one of the causes that affect the financial resources of university education institutions. Moreover, university education institutions are not active in production, business, scientific research and technology transfer, so the revenue from these activities is modest.

Allocation of state budget by mode of order and bidding

It can be seen that the establishment of higher education institutions, including financial autonomy, is necessary in the context of the State's efforts to restructure the budget. However, for universities, "solving financial problems" is not a simple task, especially, in the near future, when most universities implement autonomy.

According to Pham Van Truong, in the coming time, the Ministry of Finance will restructure State budget expenditure for university education institutions. "The state budget will be spent on the restructured number of higher education institutions, high-quality university education institutions and some higher education institutions, avoiding spending state budget for university education institutions. It is not necessary for institutions of higher learning to maintain their activities, including those that undertake the task of educating teachers," said Truong.

To do this, it is necessary to allocate the state budget in line with new payment methods, such as placing orders, bidding linked to outputs, coupled with the quantity and quality of services, gradually reducing the budget allocation under mission, at the same time implementation of policies on quality assurance of public services in university education.

Therefore, the Ministry of Finance proposed the Ministry of Education and Training to co-ordinate with other ministries and localities (parent agencies of public university education) to merge, consolidate or dissolve universities and educational institutions that are ineffective, and it is not necessary for every province to establish a university. To organize, reorganize and concentrate on building a number of key pedagogical schools for training teachers and educational management. At the same time, the Ministry of Education and Training must promulgate regulations on economic-technical norms, quality criteria and output standards in university education as a basis for studying the change in the mode of distribution, to use state budget for university education in order to progress towards the allocation of state budget for university education according to the output standard.

"The Ministry of Finance has submitted to the Government a draft decree regulating the assignment, placing orders or bidding for the provision of public products and services using state budget funds from regular expenditures. After the decree is issued, qualified services will be provided through bidding, providing equal opportunity to all university education institutions regardless of public / access to equal opportunity in providing public service delivery on higher education using state budget. With this plan, financially autonomous schools are equally involved in the bidding for public service delivery in higher education, i.e. no "cutting" the state budget, just a modification of the State budget for higher education," Pham Van Truong said.

Particularly, in addition to renovating the structure and mode of state budget expenditure for higher education, these institutions must also take the initiative in improving their autonomy in managing the professional tasks and financial management of their own establishments. To know how to increase revenue by improving the quality of service delivery to attract learners, "win" in bidding for public services from the state budget. At the same time, revenue from service activities, scientific research and technology transfer will be raised to increase the financial resources for the operation of the school.

By Thuỳ Linh/Bui Diep

Related News

Financial management - accounting via digital platforms

Financial management - accounting via digital platforms

VCN - Amid current difficulties in accessing capital, the standardization and digital transformation of accounting activities, financial statements, etc. is considered an effective solution for small and micro enterprises.
Two new regulations on financial activities to take effect from August

Two new regulations on financial activities to take effect from August

New regulations on the operation of money exchange agents of bordering countries and eligibility requirements for foreign loans without the Government’s guarantee will officially take effect from August, 2023.
Ho Chi Minh City needs a special mechanism to develop the International Financial Center

Ho Chi Minh City needs a special mechanism to develop the International Financial Center

VCN - The project of Ho Chi Minh City International Financial Center is built with the approval of the Central Government and the Government. Currently, the project has been approved by ministries and sectors and has been submitted to the Government. However, according to experts, Ho Chi Minh City needs specific mechanisms and policies to form an International Financial Centre soon. Customs Magazine interviewed Dr. Nguyen Huu Huan, Head of Financial Market Department, Ho Chi Minh University of Economics, about this issue.
UK gov"t supports regional financial and business centre development in Vietnam

UK gov"t supports regional financial and business centre development in Vietnam

The UK government has appointed TheCityUK to support Vietnam’s goal of developing a regional financial and business centre in Ho Chi Minh City, British Embassy in Hanoi announced on February 22.

Latest News

Banks reduce interest rates, offer new loans for storm-affected customers

Banks reduce interest rates, offer new loans for storm-affected customers

Several private and State-owned banks have reduced interest rates and offered debt relief for customers affected by Typhoon Yagi.
Allocating credit room, motivation for banks to compete

Allocating credit room, motivation for banks to compete

VCN - The State Bank of Vietnam (SBV) has announced that it will allocate the credit growth limit (room) for banks that have achieved 80% of their target. This is an incentive for banks to increase their competitiveness.
New securities accounts in August reach record high in over two years

New securities accounts in August reach record high in over two years

August saw the highest number of new securities accounts opened in more than two years, dating back to May 2022.
Fiscal policy needs to return to normal

Fiscal policy needs to return to normal

VCN - Talking to Customs Magazine about the role and orientation of fiscal policy in the new period, Dr. Le Duy Binh, CEO of Economica Vietnam, affirmed that returning to normal fiscal policy is a message that is consistent with current reality.

More News

Credit growth target is within reach to contribute to boosting economic growth: SBV

Credit growth target is within reach to contribute to boosting economic growth: SBV

Another important factor is to increase the capital absorption capacity of enterprises which will require a combination of macro policies to create favourable conditions for businesses, SBV’s Deputy Governor Đào Minh Tú said.
Strictly handle violations of invoices in a timely manner to avoid budget losses

Strictly handle violations of invoices in a timely manner to avoid budget losses

VCN - The General Department of Taxation has just issued a document directing local tax authorities nationwide to conduct close and timely review and supervision of businesses showing signs of risks in the illegal trade and use of invoices.
SBV gives the green light to increase credit

SBV gives the green light to increase credit

Commercial banks and other credit institutes whose credit growth reached 80% of the targets set by the central bank at the beginning of the year, will have their credit limit increased, stated the State Bank of Vietnam (SBV).
Accurate information, improving quality of state financial statement

Accurate information, improving quality of state financial statement

VCN - The preparation of state financial statement has been significantly improved for units in the State Treasury as well as at financial information providers, thereby assessing the state financial picture transparently and comprehensively.
Strive to achieve State revenue in 2024 exceeding 10% of the target

Strive to achieve State revenue in 2024 exceeding 10% of the target

VCN - In 2024, striving to collect the State revenue exceeding 10% of the target assigned by the National Assembly, and reaching the revenue of about 5% higher than the estimate in 2024 to meet the estimate and increase the expenditure to create sources for salary reform and unplanned tasks.
Continue to publicly disburse public investment capital, many key projects have low rates

Continue to publicly disburse public investment capital, many key projects have low rates

VCN - The Ministry of Finance continues to publicize the disbursement rate of public investment capital plans of many key projects, notably that many projects and component projects have very low disbursement rates.
Public investment disbursement rate in 8 months reaches about 40.5% of the plan

Public investment disbursement rate in 8 months reaches about 40.5% of the plan

VCN - The low disbursement rates of some localities that have large disbursement plans, have greatly affected the overall disbursement rate of the whole country, the Ministry of Finance released.
State revenue in 8 months increased by about 18%

State revenue in 8 months increased by about 18%

VCN – In the first eight months of the year, the accumulated state revenue is estimated to increase by 17.8% year-on-year to VND1,335.6 trillion, meeting 78.5% of the estimate.
Challenges of collecting e-commerce tax losses

Challenges of collecting e-commerce tax losses

Digital transformation is an inevitable trend that changes the way goods and services are consumed and supplied, especially activities on digital platforms, making tax management more complicated.
Read More

Your care

Latest Most read
Banks reduce interest rates, offer new loans for storm-affected customers

Banks reduce interest rates, offer new loans for storm-affected customers

Several private and State-owned banks have reduced interest rates and offered debt relief for customers affected by Typhoon Yagi.
Allocating credit room, motivation for banks to compete

Allocating credit room, motivation for banks to compete

The State Bank of Vietnam (SBV) has announced that it will allocate the credit growth limit (room) for banks that have achieved 80% of their target.
New securities accounts in August reach record high in over two years

New securities accounts in August reach record high in over two years

August saw the highest number of new securities accounts opened in more than two years, dating back to May 2022.
Fiscal policy needs to return to normal

Fiscal policy needs to return to normal

VCN - Talking to Customs Magazine about the role and orientation of fiscal policy in the new period, Dr. Le Duy Binh, CEO of Economica Vietnam, affirmed that returning to normal fiscal policy is a message that is consistent with current reality.
Credit growth target is within reach to contribute to boosting economic growth: SBV

Credit growth target is within reach to contribute to boosting economic growth: SBV

Another important factor is to increase the capital absorption capacity of enterprises which will require a combination of macro policies to create favourable conditions for businesses, SBV’s Deputy Governor Đào Minh Tú said.
Mobile Version