Decision No. 138/2007/QĐ-TTg Approving the Strategy for the Development of State Treasury until 2020

 

Pursuant to …;

ON APPROVING THE STRATEGY FOR DEVELOPING THE STATE TREASURY UNTIL 2020

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Considering the proposal of the Minister of Finance at Circular No. 52/TTr-BTC dated June 27, 2007,

DECISION:

Article 1. Approves the Strategy for Developing the State Treasury until 2020 with the following main contents:

I. General Objective

Building a modern State Treasury operating safely, effectively, and steadily on the basis of institutional reform, policy improvement, organizational structure perfection, technological modernization, and human resource development to fulfill its functions: managing state budget funds and other state financial funds; managing treasury funds and government debt; enhancing capacity, efficiency, and transparency in managing state financial resources through comprehensive national accounting. By 2020, all activities of the State Treasury will be carried out on a modern information technology platform and an electronic State Treasury will be established.

II. Contents of the Strategy for Developing the State Treasury until 2020

1. Managing state budget funds and other state financial funds

a) Linking fund management with the state budget management process from budget preparation, allocation, implementation, accounting, auditing, and settlement through reforming state budget accounting work, perfecting financial reporting systems;

b) Unifying the management of state financial funds by reflecting and accounting for them fully within the state budget and treasury management system; all revenues and expenditures of state financial funds must be processed through centralized payment accounts of the State Treasury;

c) Modernizing state revenue management through the State Treasury by simplifying administrative procedures, reducing time and procedures for tax payments. Effectively applying advanced electronic information technology to the state revenue management process with modern tax collection methods, ensuring real-time processing of state revenue data;

d) Reforming the management, control, and payment of state budget expenditures through the State Treasury based on establishing mechanisms, processes for managing, controlling, and paying state budget expenditures through the State Treasury in accordance with international practices to operate the state budget and treasury management information system; implementing expenditure control based on outcomes, tasks, and budget programs; classifying state budget expenditures by content and value to build effective expenditure control processes based on risk management principles; clearly defining responsibilities and authorities of financial agencies, supervisory agencies, the State Treasury, and budget-using units; imposing administrative penalties on individuals and organizations violating regulations on the use of state budget funds;

Unifying the procedures and focal points for controlling state budget expenditures, including domestic and foreign sources of funding, and state budget expenditures occurring both domestically and abroad;

Strengthening administrative reform in expenditure control work to ensure simplicity, clarity, and transparency in documentation, certificates, and control content, moving towards electronic expenditure control procedures;

e) Reforming the statistics of state budget revenue and expenditure; clearly defining the content of state budget revenues and expenditures in line with international standards for public sector accounting and government financial statistics according to the IMF model.

2. Managing treasury funds and government debt

a) Reforming treasury fund management to ensure safe and efficient management of treasury funds; implementing a centralized payment model where the State Treasury opens centralized payment accounts at the Central Bank to manage treasury funds of the entire State Treasury system; developing a system of tools to serve treasury fund management and government debt management;

b) Effectively performing the role of debt management by comprehensively accounting for government debts and contingent liabilities at the State Treasury according to international principles and practices;

Reforming the mechanism and method of issuing government bonds towards modernization, transparency, and market-oriented operations; linking with the development of money markets and securities markets; integrating with regional and international bond markets.

c) Implementing a specialized treasury model for managing treasury funds and government debt with basic functions of formulating short-term and medium-term capital-raising plans, organizing capital raising on the market, managing treasury funds and cash flows, investing treasury funds; conducting settlements, accounting, providing information, and reporting related to government debt management and treasury fund management.

3. National Accounting Work

a) Establishing a unified, modern national accounting system based on the accrual principle to meet the needs of state budget and public finance management, ensuring transparency;

b) Developing management accounting to meet the requirements of outcome-based budget allocation, ensuring the ability to analyze and calculate the costs and effectiveness of state budget expenditures as well as the need to prepare budgets based on the accrual principle;

c) Implementing international integration in national accounting, building national accounting standards consistent with the public sector accounting system;

d) Studying and building a model for the State Treasury to perform the function of overall national accounting, in the direction: being a member of the National Accounting Standards Board; consolidating and processing accounting data from all units implementing the national accounting system; responsible for publishing and providing accounting figures and the financial situation of the state; centralizing accounting database storage.

4. Payment System

a) Modernize the payment work of the State Treasury on a modern information technology platform, towards automation and increased transaction processing speed; ensure easy connectivity and interface with other application systems; participate in bilateral electronic payment systems, inter-bank electronic payments, and electronic settlement systems with banks; effectively apply advanced cashless payment technologies and methods internationally. By 2020, the State Treasury will basically not conduct transactions in cash.

b) Study and implement a centralized payment model, where all government budget and state financial fund transactions are conducted through centralized accounts.

5. Internal audit and inspection

a) Enhance the quality and effectiveness of inspection and control work based on innovation in content, methods, and inspection procedures to suit the development of information technology and the modernization of State Treasury activities; establish monitoring indicators and risk management systems to provide early warnings for all risks in State Treasury operations, detect and promptly prevent violations of state policies and regulations.

b) Transition the inspection and control model to an internal audit model to ensure enhanced independence and uniformity in the operational activities of the internal audit system, with sufficient authority during the implementation process to promptly identify and address unusual signs in State Treasury operations.

6. Information technology

a) Develop an overall architecture for the State Treasury's information system, with the budget and treasury management information system as the backbone to meet the requirements of financial and budgetary management reform; expand modern IT applications into State Treasury business operations in a centralized and integrated manner with the budget and treasury management information system.

b) Develop advanced technical infrastructure to meet the goal of modernizing information technology at the State Treasury; deploy security systems for the State Treasury's information system; establish disaster recovery systems.

c) Increase investment in information technology to ensure rapid and stable development, particularly focusing on certain aspects of investment such as equipment and technology quality, backup equipment, and enhancing the use of external consulting resources for application development in a professional manner.

d) Design and build data repositories on budget revenue and expenditure, debt management, asset management, and other State Treasury business activities to provide information for the national database and serve financial and budgetary management tasks.

đ) Apply modern, synchronized, and professional information technology to all State Treasury activities, forming an electronic State Treasury.

7. Organizational structure and human resource development

a) Improve the streamlined and modern organizational structure of the State Treasury to operate effectively and professionally. Reorganize central units under the State Treasury towards centralized management and operation; enhance research capabilities and policy formulation; increase specialization in some units, especially the establishment of specialized State Treasuries (State Treasury manages the government's cash reserve and debt; State Treasury performs the role of national general accounting). Reorganize local State Treasuries towards regional establishment, with a phased reorganization according to administrative boundaries. Transition the State Treasury's organizational structure to ensure full performance of three functions: managing the government budget and state financial funds; managing the government's cash reserve and debt; performing national general accounting.

b) Perfect personnel management policies and procedures towards enhancing professionalism and advanced management levels among State Treasury staff; focus on developing a team of policy researchers, policy planners, and top-level experts with high professional skills; rationalize human resources within the State Treasury in line with new functions, responsibilities, organizational models, and management mechanisms; manage personnel based on workload and quality of assigned tasks; clearly define administrative powers and responsibilities, as well as material liabilities for each position; effectively utilize human resources from professional service organizations.

Innovate training content, programs, and methods, emphasizing the enhancement of management knowledge and operational skills for State Treasury staff in accordance with their roles and responsibilities.

8. Strengthen international cooperation

a) Strengthen the application of international practices and standards in State Treasury activities, such as international public accounting standards, cash management, and debt management in the context of linking financial systems in the region.

b) Effectively implement international cooperation projects already signed; develop bilateral cooperation projects and programs between the State Treasury and treasuries of other countries and international financial organizations regarding financial management experience.

III. Implementation measures

1. Perfecting the institutional and policy framework for State Treasury activities

Establish a comprehensive and synchronized legal framework to create an environment and regulatory framework for public financial reform, including State Treasury activities, following the principle that legal frameworks should precede reforms by one step to ensure sufficient time and conditions for implementation.

a) Develop a national accounting system based on full accrual accounting principles in line with international public accounting standards and establish a National General Accounting Office.

b) Develop a Law on Cash Management to achieve safe and effective cash management objectives.

c) Amend and supplement the State Budget Law to be consistent with the trend of administrative reform, the requirements for managing public finance in the upcoming period, and international practices;

d) Study amendments and supplements to the functions, tasks, authorities, and organizational structure of the National Treasury to align with the National Treasury Development Strategy until 2020;

đ) Draft a Government Decree on administrative penalties for the management and control of state budget expenditures;

2. Focus on modernizing management technology as a driving force for reform and innovation in the activities of the National Treasury;

a) Apply advanced information technology in the operations of the National Treasury; prioritizing investment in and use of advanced software from around the world that meets the requirements for financial and budgetary management in the new situation and according to international practices;

b) Mobilize financial resources to implement investments in the application and development of information technology for the National Treasury. Pay special attention to attracting foreign capital for modernization projects, focusing on the current phase's budget and treasury management information system project and expanding the project after 2010;

3. Enhance the effectiveness of organizational structures and the quality of human resources;

Study and build an organizational structure model suitable for functions, tasks, and modern technology, ensuring improved efficiency in managing state finances;

Focus on building, training, and developing a professional team of National Treasury officials with adequate qualifications, capabilities, and moral qualities to meet the requirements of implementing the National Treasury Development Strategy until 2020;

4. Emphasize international cooperation as a lever for reform and innovation in the activities of the National Treasury;

Diversify the content, forms, and partners in international cooperation in the context of integration with the region and the world; link international cooperation with the requirement of modernizing the activities of the National Treasury, viewing this work as a lever and solution to implement the National Treasury Development Strategy;

5. Strengthen information dissemination and propaganda;

Strengthen propaganda and dissemination of information so that relevant levels, sectors, and cadres and civil servants of the National Treasury have a correct understanding of the significance, role, and importance of the process of reforming the activities of the National Treasury to take practical measures to successfully implement the National Treasury Development Strategy until 2020;

Article 2. Implementation

a) Based on the content of this Decision, the Ministry of Finance shall be responsible for organizing and coordinating with the Ministry of Planning and Investment, the State Bank of Vietnam, related ministries and sectors, and provincial and municipal people's committees under the central government to implement the National Treasury Development Strategy until 2020; develop a roadmap and detailed implementation plan for the contents of the National Treasury Development Strategy until 2020; at the same time, take measures to organize implementation, guide, inspect, and supervise the implementation of the Strategy; annually organize an assessment and report to the Prime Minister on the implementation of the National Treasury Development Strategy;

Develop a mechanism for mobilizing and utilizing financial resources to implement the National Treasury Development Strategy; ensure funding for infrastructure construction, equipment procurement, and human resource development for the National Treasury based on the principle of efficiency, avoiding waste;

b) Ministries, agencies equivalent to ministries, agencies under the Government, and provincial and municipal people's committees under the central government shall, within their functions and responsibilities, cooperate with the Ministry of Finance to organize and direct the implementation of the National Treasury Development Strategy within their jurisdiction;

Article 3. This Decision takes effect fifteen days after its publication in the Official Gazette;

Article 4. The Minister of Finance, ministers, heads of agencies equivalent to ministries, heads of agencies under the Government, and chairpersons of provincial and municipal people's committees under the central government are responsible for implementing this Decision./;