Without reducing staff, it is impossible to restructure the budget

(VCN) - In the context of limited budget, reducing staff and restructuring the budget is necessary, on the one hand to reduce recurrent expenditure, on the other hand to restructure the state apparatus, towards the objective of simplification and effectiveness.
without reducing staff it is impossible to restructure the budget
At the moment, there are about 4 million people in the country getting salaries and salary-like allowances. Photo: Thuy Linh.

More than 4 million people are paid

At the newly promulgated anti-waste program, the Government has requested that in 2018 the whole country will strive to reduce about 2.5% of public service delivery units (PSDUs); 1.7% of civil servants; 2.5% of the non-business payrolls in comparison with the number allocated in 2015.

The reason why staff downsizing has become a hot issue and has been pushed by the government currently, is that apart from the police and army, there are around 4 million people in the whole country getting salaries and salary-like allowances, of which about 2.5 million officers are working in 58,000 PSDUs. Suggesting this issue to the National Assembly, Minister of Finance Dinh Tien Dung said that in the context of limited budget, there is no other way but to save money, promote regular expenditures and rearrange the organization and cut down workforce. Without reducing staff, it is impossible to restructure the budget.

According to many experts, saving money from streamlining the system in the past is a meaningful task, especially because the goal of salary improvement has not been reformed for many years. As long as the reform of the machinery and streamlining the payroll has not been done yet, the salary also cannot be reformed. Budget savings can be deployed more actively if the streamlining of the apparatus and the payroll are conducted more synchronously and drastically.

According to Mr. Dinh Duy Hoa, senior expert, former Director of the Department of Public Administrative Reform, Ministry of Home Affairs, to solve the problem of downsizing workforce, it must be analyzed in a different view. From the employment perspective, being a subject of streamline payroll means that for the State in general, each state agency in particular has calculated with the ability to save and retain that person in state agencies and organizations to continue working, but it failed, forcing to take that person out of the apparatus. This issue is clearly defined in Clause 2, Article 3 of the Government's Decree No. 108/2014/ND-CP dated November 20, 2014 on downsizing policies. And next is from the policy perspective, i.e. resolving policies for redundant workers. These policies are stipulated in the Decree No. 108/2014/ND-CP, notably the pre-retirement policy and the severance policy.

"It is important to emphasize the significance of these policies, in that the State spends a substantial amount of money to create some initial advantages to motivate redundant people when being out of the apparatus, so they can find another suitable job. This reflects the humanity of our State", stated Mr. Dinh Duy Hoa.

Renewal mechanism of identification and staffing

In order to reduce the workforce effectively, many argue that firstly the management of civil servants and public officials based on their positions must be done very clearly.

According to Mr. Dinh Duy Hoa, it is necessary to properly evaluate officers and civil servants. To do so, first of all, the assessment should be renovated to avoid general evaluation. Evaluation should focus on the monthly performance of the civil servants with clear criteria. Moreover, the heads of agencies and organizations must take responsibility in evaluating their civil servants so that they can avoid cursory evaluations.

"This is not an easy issue. The mechanism for taking votes of confidence in the planning of civil servants in a new appointment or reappointment... is affecting the responsibility of the head who conducts the assessment of civil servants. They also identify who will be cut off from the system. With kindness, everyone is considered a good person, which is relatively popular in the assessment of public officials at the end of the year in public agencies", said Mr. Dinh Duy Hoa.

Mr. Nguyen Truong Giang, Deputy Director of the Department of Public Expenditure, Ministry of Finance also noted that in order to manage the payrolls, the State only assigns payrolls to the PSDUs serving the state management tasks to determine the number, demand and classify officers by their position. In addition, it is necessary to renew the mechanism of identification and assignment of payrolls in the direction of closely managing and supervising the payrolls of PSDUs, which are fully funded by the state budget or part of regular expenditures.

"First of all, legal provisions on classification criteria, conditions for establishment, merger, consolidation and dissolution of PSDUs by sector and field should be finalized. Based on that, it should be reorganized the PSDUs by sector and field according to the principle of specialized law, which does not stipulate the establishment of the organizational apparatus of the PSDUs. In cases where it is necessary to set up a new PSDU, the unit must fully finance itself (except for cases where it is necessary to set up a new one to provide basic and essential public services)", proposed Mr. Nguyen Truong Giang.

A representative of the Department of Public Expenditure also said that a PSDU can provide many same-type public services in order to reduce the clue and overlap functions. Restructuring or dissolving of poorly performing PSDUs is also required. Along with that, socialization should be promoted, transferred qualified economic and other non-business units into joint-stock companies.

As long as the reform of the machinery and streamlining the payroll has not been done yet, the salary also cannot be reformed. Budget savings can be deployed more actively if the streamlining of the apparatus and the payroll are deployed more synchronously and drastically.

By Thuy Linh/Ha Thanh

Related News

The Government plans to borrow maximum of VND676,057 billion and repay debt of VND453,990 billion in 2024

The Government plans to borrow maximum of VND676,057 billion and repay debt of VND453,990 billion in 2024

VCN – The Loan and Public debt payment plan in 2024 and the 3-year public debt management program for 2024 - 2026 have been approved by Deputy Prime Minister Le Minh Khai in Decision No. 260/QD-TTg.
Personal Income Tax Law to be amended in 2025

Personal Income Tax Law to be amended in 2025

VCN - On March 29, answering questions from the press at the Ministry of Finance's regular press conference for the first quarter of 2024, the leader of the Department of Management and Supervision of Tax, Charges and Fees Policy (Ministry of Finance) said, continue to focus on drastically implementing solutions to support businesses that the National Assembly and the National Assembly Standing Committee have approved; At the same time, closely monitor the situation to research and advise competent authorities on appropriate solutions.
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.
Good management of public debt creates room to implement expansionary fiscal policy

Good management of public debt creates room to implement expansionary fiscal policy

VCN - Public debt safety indicators continue to be strictly controlled in the safe limit. With a lower debt level than the current ceiling rate, and a favorable debt structure, Vietnam has a lot of room to implement expansionary fiscal policy to allocate loans for large projects as an economic growth engine.

Latest News

Six localities should expedite site clearance and public investment

Six localities should expedite site clearance and public investment

VCN – Six provinces of Binh Thuan, Gia Lai, Dong Nai, Binh Duong, Binh Phuoc and Tay Ninh have disbursement rates lower than the average rate of the country in the first three months of the year, the Ministry of Finance reports.
Banks announce plans to significantly increase capital

Banks announce plans to significantly increase capital

Many banks have recently announced plans to significantly increase charter capital to improve the capital adequacy ratio (CAR) and strengthen financial potential for credit and business expansion.
Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam

Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam

VCN – On May 3, Minister of Finance Ho Duc Phoc had a reception with Mr. Yamada Takio, Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam before the end of his term.
Banks strengthen information security systems

Banks strengthen information security systems

Banks often face attacks from high-tech criminals to steal customer data to conduct property appropriation fraud. Therefore, banks must strengthen defence measures to ensure safety and security in their systems.

More News

“Opportune environment” for growth of insurance enterprises

“Opportune environment” for growth of insurance enterprises

VCN - According to the Ministry of Finance, in the first quarter of 2024, total assets of insurance enterprises are estimated to reach VND 934.8 trillion, an increase of 11%; Investment back into the economy is estimated at VND 7,776.5 trillion, an increase of 8.7%. These are positive numbers for insurance enterprises to expect positive business results for the whole year 2024.
Closely monitoring fluctuations to calculate the appropriate time to adjust prices

Closely monitoring fluctuations to calculate the appropriate time to adjust prices

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management needs to ensure inflation control and continue to support the removal of difficulties for business.
Strictly monitor market fluctuations to appropriately adjust prices

Strictly monitor market fluctuations to appropriately adjust prices

VCN – In the second quarter and the remaining months of 2024, the price management and administrations need to effectively control inflation and remove difficulties for production and businesses, the Ministry of Finance reports.
Closely monitoring market fluctuations to consider appropriate time to adjust prices

Closely monitoring market fluctuations to consider appropriate time to adjust prices

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management and administration need to ensure good control of inflation and continue to remove difficulties for production and business.
How does the Land Development Fund work effectively?

How does the Land Development Fund work effectively?

VCN - Speaking at the Conference to collect opinions on the draft Government Decree regulating the Land Development Fund held by the Ministry of Finance on April 22, Deputy Minister of Finance Bui Van Khang emphasized the necessity of the development of the Government Decree regulating the Land Development Fund.
Vietnam seeks to remove obstacles in upgrade of securities market

Vietnam seeks to remove obstacles in upgrade of securities market

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.
Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electronic invoices as well as pay taxes in gold investment activities.
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

VCN - The revised Draft Law on Value Added Tax (VAT), besides inheriting many provisions from the current Law, also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund.
Read More

Your care

Latest Most read
Six localities should expedite site clearance and public investment

Six localities should expedite site clearance and public investment

VCN – Six provinces of Binh Thuan, Gia Lai, Dong Nai, Binh Duong, Binh Phuoc and Tay Ninh have disbursement rates lower than the average rate of the country in the first three months of the year, the Ministry of Finance reports.
Banks announce plans to significantly increase capital

Banks announce plans to significantly increase capital

Many banks have recently announced plans to significantly increase charter capital to improve the capital adequacy ratio (CAR) and strengthen financial potential for credit and business expansion.
Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam

Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam

VCN - In the financial sector, recently, Vietnam and Japan have effectively and closely cooperated in sectors such as ODA, tax, customs, securities and insurance.
Banks strengthen information security systems

Banks strengthen information security systems

Banks often face attacks from high-tech criminals to steal customer data to conduct property appropriation fraud. Therefore, banks must strengthen defence measures to ensure safety and security in their systems.
“Opportune environment” for growth of insurance enterprises

“Opportune environment” for growth of insurance enterprises

VCN - According to the Ministry of Finance, in the first quarter of 2024, total assets of insurance enterprises are estimated to reach VND 934.8 trillion, an increase of 11%; Investment back into the economy is estimated at VND 7,776.5 trillion, an increa
Mobile Version