Directive No. 04/2004/CT-BTC on strengthening thrift practices and waste prevention in the financial sector

DIRECTIVE

On Strengthening the Work of Practicing Thrift and Combating Wastefulness in the Finance Sector

Implementing Ordinance No. 02/1998/PL-UBTVQH10 dated February 26, 1998 of the Standing Committee of the National Assembly on practicing thrift and combating wastefulness and Decree No. 38/1998/NĐ-CP dated June 9, 1998 of the Government detailing the Ordinance on practicing thrift and combating wastefulness; the Party Executive Board of the Ministry of Finance issued Directive No. 09/BCS on June 14, 2001; the Minister of Finance issued Directive No. 10/CT-BTC on December 27, 2001 on intensifying the practice of thrift and combating wastefulness in the finance sector.

In recent years, along with strengthening the work of inspecting the practice of thrift and combating wastefulness, the Ministry of Finance has implemented many mechanisms and policies to promote the practice of thrift and combating wastefulness such as: implementing the mechanism of allocating personnel quotas and operating expenses for the Tax System, State Treasury, and General Customs Department; granting financial autonomy to subordinate units under the Ministry; Promoting decentralization in financial management, asset management, investment, and construction management for units and systems under the Ministry; Issuing guidance documents on business procedures, specifically detailing state policies related to the work of practicing thrift and combating wastefulness to ensure synchronized and unified implementation throughout the sector. The results of inspections according to the inspection program No. 90-CTr/TW dated May 19, 2003 of the Politburo, Central Committee in 2003 showed that units under and directly under the Ministry have generally strictly complied with state regulations on expenditures, internal financial management, basic investment construction management, and state asset management entrusted to the finance sector.

Alongside the achievements mentioned above, some units in the finance sector still fail to properly implement the work of practicing thrift and combating wastefulness in certain areas such as: administrative expenditure exceeding standards, telephone equipment procurement and payment of telephone charges, purchasing assets not in accordance with prescribed standards and limits, many expenses for organizing festivals, commemorating establishment days, and annual New Year celebrations remain formalistic, costly, and wasteful of time and funds.

The main cause of the above situation is primarily due to unit heads not fully recognizing the implementation of the Ordinance on practicing thrift and combating wastefulness within their units, delegating responsibilities to subordinates without sufficient oversight, timely correction, and discipline of violations. Some units have not paid adequate attention to established management and procurement regulations for state assets, leading to procurement and equipment beyond prescribed standards and limits. Additionally, there are objective reasons such as incomplete and timely issuance of guiding documents on financial expenditure standards and asset management, investment, and construction by the state, which hinders unit implementation, especially in the rollout of new mechanisms and policies.

To strengthen the implementation of state regulations on practicing thrift and combating wastefulness, continue to carry out internal expenditure inspection work according to the contents of Inspection Plan No. 31TC/BCS dated July 11, 2003 of the Party Executive Board of the Ministry of Finance; the Minister of Finance requests the heads of units, party committees at all levels, and mass organizations in units under the Finance Sector to immediately implement the following tasks:

1. Heads of units under the Ministry (Administrative and Public Service Affairs Department, Investment Department, State Asset Management Bureau, Corporate Financial Affairs Bureau) shall promptly review the current financial regulatory system, timely amend and supplement provisions on expenditure standards and asset usage quotas to align with current conditions and requirements for enhanced state financial management, creating favorable conditions for administrative and public service units generally and finance sector units specifically to have legal grounds for implementing and complying well with the Ordinance on practicing thrift and combating wastefulness.

2. The Steering Committee for Practicing Thrift and Combating Wastefulness and the Director of the Financial Affairs and Administration Department shall effectively implement the Ordinance on practicing thrift and combating wastefulness through increased inspection and control in expenditures and internal financial management, asset management, and investment construction.

- The Financial Affairs and Administration Department shall take the lead in developing an inspection plan and coordinate with the Ministry's Inspectorate, units, and vertically organized systems under the Ministry (Tax总局，海关总署，国家金库，国家储备局)继续按照财政部党组2003年7月11日第31号计划在2004年内对部属和直属单位进行检查。

- Inspect and grasp the situation in units to summarize three years of implementation of the work of personnel quota allocation, operating expense allocation, and financial autonomy grant in units and organizations under the Ministry. Continue to implement financial autonomy for all remaining public service units, and expand the implementation of administrative expense allocation for industry units meeting the conditions in the near future.

- Further expand decentralization in asset management, investment, and basic construction management within the sector, consistent with the expense allocation mechanism and financial autonomy, creating initiative for units and enhancing efficiency in the use of state assets. Develop plans and organize the implementation of asset management contents according to the approved state asset management project. Promptly guide the implementation of new regulatory documents in internal sector management (Construction Law, Accounting Law).

3. Heads of vertical systems under the Ministry and budgetary units at all levels shall be responsible for:

- Strictly comply with state and Ministry regulations on budget preparation, settlement, and management of allocated capital and funds, ensuring proper and effective use according to expenditure regulations, asset procurement, conference organization, summary, and conclusion.

- Implement well the budget allocation mechanism and financial autonomy within the industry. Proactively allocate appropriate funds for enhancing material infrastructure and modernizing the Finance sector according to the guidelines of the Ministry and current regulations.

- Strictly comply with regulations on equipment procurement and usage. Develop annual equipment procurement plans in conjunction with the assessment of existing assets to ensure effective asset utilization and reasonable allocation of funds for purchasing equipment necessary for professional work, in accordance with state regulations. For mobile phone and fixed-line telephone installation at private residences and monthly fee payment, immediately follow the guidelines provided in Circular No. 5683TC/TVQT dated May 30, 2003 of the Ministry of Finance.

- Carry out construction investment in accordance with approved planning and schedules. Promptly conduct surveys and develop new investment and construction plans as well as repair and renovation plans (by 2010). Cease construction of office premises outside approved planning. Enhance the quality of project evaluation, inspection, and investment decision-making to ensure compliance with state procedures.

- For Project Investors: Seriously implement construction procedures: project approval, cost estimation design, bidding. Strengthen technical supervision, construction quality management, adherence to approved cost estimates, and improve specialized staff to fulfill their roles and responsibilities as Project Investors.

- Maintain self-inspection activities within one's own unit and submit reports to the immediate superior supervisory unit for consolidation and reporting to the Ministry.

- Heads of vertical systems under the Ministry (Tax General Department, Customs General Department, State Treasury, National Reserve) instruct units under their systems to effectively carry out thrift practices and waste prevention. Increase inspections and oversight of subordinate units to promptly correct and handle financial, asset, and construction management violations. Report to the Ministry on the handling of violations following the requirements set forth in Circular No. 10913TC/TVQT dated October 21, 2003 of the Ministry of Finance.

- Heads of units and systems under the Ministry should strengthen the dissemination and implementation of thrift practices and waste prevention among every civil servant and build specific action programs within their units. Strictly adhere to financial transparency rules, implement grassroots democratic regulations, and comply with thrift and waste prevention reporting requirements as stipulated by current regulations.

4. Directors of Provincial Finance Departments, centrally-administered city finance departments shall, in the course of performing their functions and duties, be responsible for advising local Party Committees and People's Governments to effectively direct the implementation of thrift and waste prevention measures locally.

5. People's Inspection Organizations at all levels:

Collaborate with mass organizations to effectively perform inspection, supervision, propaganda, and mobilization tasks to encourage civil servants in the sector to implement thrift and waste prevention measures.

6. Assign the Implementation Steering Committee of the Thrift and Waste Prevention Ordinance, Anti-Corruption Ordinance, Party Committees at all levels, People's Inspection Organizations, and mass organizations such as Trade Union, Women's Affairs, Youth League of units under the Finance Sector to inspect, supervise, and urge the implementation. Unit heads are responsible for disseminating the spirit of thrift and waste prevention to each civil servant and administrative staff member in their units, and bear responsibility for guiding and organizing the implementation of this Directive.