The Ministry of Finance vehicles fixed expenditure standard: Prudent and rational

Dr. Vu Dinh Anh

Sir, recently the Ministry of Finance has issued a Decision of fixed rate for vehicles expenditure to transport officers who are entitled to have a car from home to work. How do you think about this move?

Fixed expenditure of vehicles for for government agencies was a pilot study previously but with the spirit of volunteerism, therefore it could be not implemented and ended in deadlock. This time, the Ministry of Finance carried out the mandatory structure in the form of a Decision that made the properties different from the previous time.

In my opinion, this is a right thing to concretize a sensible policy associated with management reforms and use of public assets, in particular for those entitled officers to have vehicles pick-up at home as prescribed.

Besides, the Ministry of Finance - the agency which is responsible to the Government for public expenditure and assets management, has set the example at the forefront of the implementation of this prpcedure. This will be a good example, make a positive impact and far more effective than the deployment of other Ministries.

However, most of all, I think, this move by the Ministry of Finance can be likened to a small step, but has great significance, aiming to fundamentally change the thinking in the management of public assets as well as public spending.

Thus, it can be interpreted that the decision of the Ministry of Finance does not merely stop at fixing a specific budget, but also has a larger goal, sir?

As I said, fixed expenditure for using public service vehicles will save the use of public assets. But in the broader view, doing this is to change the perception of our inherent notion that every public service, in particular pick-up services at home for qualified officers, must be provided by the Government. The decision of the Ministry of Finance shows that we can fully use the form of financing, which is to replace public services by public spending.

That will form the foundation to construct a series of policies to expand the mobilization of public services from other subjects in the society by the financial structure. In this particular case, the Ministry of Finance has launched a mechanism: Agencies give money to qualified officers to use other forms of transportation, and other services to move from home to the office instead of using government agency’s vehicles to transport. Therefore, expanding the pick-up service at home for officers.

Furthermore, the next direction is not only limited at pick-up service but also expand to other public services with the prerequisite to save the state budget.

Gradually, if the implementation is successful at the Ministry of Finance, it can be expanded to all subjects related to the use of vehicles in a certain extent, can also be all ministries, branches and local authorities.

What do you think about the level of fixed expenditure given by the Ministry of Finance?

The structure for determining the fixed level for vehicles expenditure has been researched and issued cautiously and well-founded by the Ministry of Finance.

Not giving fixed expenditure for officers that use government vehicles, but only for those who are entitled to have vehicles pick-up at home as prescribed.

This is reasonable in that: Non-uniform implementation of the fixed level, which is not to provide to the eligible officers a certain amount and then do whatever they want but giving a bold taste of "financial " formula with very specific values such as fixed spending based on taxi fares, specific distances from home to work for each qualified officer etc.

In your opinion, for this policy to be implemented successfully, what is the next thing to do?

First, after a certain period of implementation of this Decision, the Ministry of Finance should re-evaluate to perfect the basis of the fixed level. For example, try to evaluate the reasonableness of the fixed level by distance from home to office with taxi fares. Seeking other possible plans, if the evaluation is not close enough.

In addition, since the implementation of this mechanism, the Ministry of Finance should also study the plan, advising superiors to expand the application out of the scope of their units as well as measures to extend the deployment method for other public services.

Thank you!