Directive No. 18/2003/CT-TTg on Promoting the Implementation of Financial Autonomy for Public Service Units

DIRECTIVE

On Promoting the Implementation of Financial Autonomy

for Public Service Units

___________________________________

Implementing financial autonomy is a crucial and necessary condition for public service units to fully utilize their resources, enhance their activities to better serve the country's economic and social development needs, and contribute to improving the living standards of staff and workers in these units.

In recent times, ministries, sectors, and localities have actively directed and implemented the transfer of financial autonomy to some revenue-generating public service units according to Decree No. 10/2002/NĐ-CP dated January 16, 2002 on financial regulations applicable to revenue-generating public service units, which has brought about positive changes, contributing to reforming and enhancing the quality of public services while still ensuring the implementation of policies for social welfare beneficiaries and the poor. However, the progress in implementing this decree remains slow, with not many revenue-generating public service units applying its financial regulations. The reasons include that some ministries, sectors, and localities have not thoroughly grasped the contents of this decree to proactively direct and develop plans for its implementation at each revenue-generating public service unit.

To promote the implementation of financial autonomy and create conditions for public service units to be autonomous in organizing tasks, using staffing levels, and paying salaries to officials and employees within the units, the Prime Minister instructs as follows:

1. Ministries, sectors, and localities must consider the implementation of organizational autonomy, financial autonomy, staffing autonomy, and salary payment autonomy for public service units as one of the key tasks in 2003 and 2004.

2. Ministers and Heads of ministerial-level agencies shall review, amend, and supplement or submit to competent authorities for amendment and supplementation of mechanisms and policies in a way that creates favorable conditions and strengthens autonomy for public service units, viewing this as a necessary prerequisite for promoting reforms in financial management, staffing, salary, and income management in public service units. Focus should be placed on amending and supplementing the system of staffing management; credit borrowing; revenue collection, distribution, and utilization systems, especially tuition fees and medical fees, to create sources for implementing the salary system as stipulated in Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government.

3. Ministers, Heads of ministerial-level agencies, and Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally-administered cities within their functions, duties, and powers shall immediately carry out the following tasks:

a) Vigorously promote propaganda and dissemination of Decree No. 10/2002/NĐ-CP dated January 16, 2002 within agencies, units, and localities so that heads and officials of public service units understand clearly the purpose, significance, and benefits of implementing new financial management mechanisms; organize implementation and report annually to the Ministry of Finance and the Ministry of Home Affairs for consolidation and reporting to the Prime Minister.

b) Ministries, sectors, and localities shall urgently develop plans and timelines to complete the transfer of financial autonomy to revenue-generating public service units, while clearly defining the degree of self-sufficiency in funding for salary reform for each revenue-generating public service unit.

c) Issue guiding documents within their authority to create favorable conditions for public service units to implement reforms in labor usage, salary payment, and operational cost autonomy according to Decree No. 10/2002/NĐ-CP dated January 16, 2002.

d) The Ministry of Finance shall take the lead, in coordination with the Ministry of Home Affairs and relevant agencies, to guide the financial autonomy mechanism for public service units with low or no non-budgetary revenues, towards the state providing stable operating funds from the state budget over a three-year period, encouraging units to strive for increased revenue, use funds economically to increase income for workers based on completing assigned tasks and continuously improving the quality of public services.

4. Ministers of the Ministries of Education and Training, Health, Culture, Sports and Tourism, Science and Technology, Natural Resources and Environment, Labor, Invalids and Social Affairs, Construction, Agriculture and Rural Development, and the Director of the General Department of Sports and Physical Training, in addition to implementing the above contents, shall undertake the following tasks:

a) Guide, inspect, and urge the classification and transfer of financial autonomy to revenue-generating public service units under their management from central to grassroots levels.

b) Develop plans and measures to gradually increase the number of units capable of self-funding operations (including salaries).

c) Develop financial autonomy proposals as prescribed in Decree No. 10/2002/NĐ-CP dated January 16, 2002 for all public service units (both revenue-generating and non-revenue generating) under their management, to be submitted to the Ministry of Finance and the Ministry of Home Affairs for review before implementation.

Specifically, the Minister of Education and Training, the Minister of Health, and the Minister of Labor, Invalids and Social Affairs shall cooperate with related ministries and sectors to study and propose mechanisms and policies to ensure that the poor, children under six years old, and social welfare beneficiaries can enjoy free services provided by the state when public service units implement the salary system as stipulated in Decree No. 10/2002/NĐ-CP dated January 16, 2002.

5. The Minister of Finance shall take the lead, in coordination with relevant agencies, to annually assess the implementation of Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government, and on this basis, propose solutions and recommendations for amendments and supplements to suitably present to the Government and the Prime Minister.

6. The Minister of Home Affairs shall take the lead and coordinate with the Minister of Finance to oversee and urge ministries, sectors, and localities to accelerate the implementation of reforms in personnel establishment management and salary payment linked to financial autonomy rights; review financial autonomy proposals for units under ministries before submitting them to the Prime Minister; coordinate with ministries, sectors, and localities to promptly issue documents within their authority and propose solutions to address difficulties encountered during implementation, to be submitted to the Government and the Prime Minister.

7. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government shall organize the implementation of this Directive.