Circular No. 188/2014/TT-BTC guiding certain provisions of Decree No. 84/2014/NĐ-CP dated September 8, 2014 of the Government detailing some articles of the Law on Thrift and Anti-Waste

CIRCULAR

Guidelines for certain provisions of Decree No. 84/2014/ND-CP dated September 8, 2014 of the Government detailing some articles of the Law on Thrift and Combating Wastefulness.
Pursuant to Decree No. 84/2014/ND-CP dated September 8, 2014 of the Government detailing some articles of the Law on Thrift and Combating Wastefulness;
Pursuant to Decree No. 215/2013/ND-CP dated December 23, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Law on Thrift and Combating Wastefulness dated November 26, 2013;

The Minister of Finance issues this Circular guiding certain provisions of Decree No. 84/2014/ND-CP dated September 8, 2014 of the Government detailing some articles of the Law on Thrift and Combating Wastefulness (hereinafter referred to as Decree No. 84/2014/ND-CP).

This Circular guides the implementation of certain provisions of Decree No. 84/2014/ND-CP regarding the Program on Thrift and Combating Wastefulness; Report on the Results of Thrift and Combating Wastefulness; Awards for Thrift and Combating Wastefulness.

At the proposal of the Director of the Legal Department;

1. State agencies, organizations, and individuals managing and using state budget funds, state capital, state assets, labor, and working hours in the public sector.

Article 1. Scope of Regulation

2. State agencies, organizations, households, and individuals managing, exploiting, and using natural resources.

Article 2. Applicability

3. Other state agencies, organizations, households, and individuals related to the implementation of the Program on Thrift and Combating Wastefulness; Report on the Results of Thrift and Combating Wastefulness; Awards for Thrift and Combating Wastefulness.

Article 3. Principles for drafting, issuing, and implementing the Program on Thrift and Combating Wastefulness

The drafting, issuance, and implementation of the Program on Thrift and Combating Wastefulness shall be carried out in accordance with Articles 11, 12, 13, and 14 of Decree No. 84/2014/ND-CP and must ensure the following principles:

1. Consistency with the Party's guidelines, policies, and state laws on thrift and combating wastefulness during each period; annual and five-year socio-economic development plans.

2. Within the scope of assigned functions, tasks, resources, and management requirements of sectors and fields; linked to administrative reform tasks, key tasks of sectors and fields.

3. Ensuring feasibility, scientificity, and suitability to reality; economy and effectiveness.

Article 4. Content of the Program on Thrift and Combating Wastefulness

1. The content of the overall Program on Thrift and Combating Wastefulness annually and over five years by the Government shall be implemented in accordance with Article 12 of Decree No. 84/2014/ND-CP.

2. Programs on Thrift and Combating Wastefulness of ministries, agencies at the level of ministries, government agencies, and other central-level organizations (hereinafter referred to as ministries and central-level agencies), provincial people's committees, and city people's committees directly under the central government (hereinafter referred to as provincial-level people's committees) and agencies, organizations using state budget funds, state capital, state assets, natural resources, and labor in the public sector must comply with the contents stipulated in Article 12 of Decree No. 84/2014/ND-CP, the contents in the overall Program on Thrift and Combating Wastefulness annually and over five years by the Government, and specific guidance provided in Article 5 of this Circular.

1. The contents of the annual and five-year comprehensive program on thrift and anti-waste implemented by the Government shall be carried out in accordance with the provisions of Article 12 of Decree No. 84/2014/NĐ-CP.

2. The programs on thrift and anti-waste of ministries, ministerial-level agencies, agencies under the Government, and other central agencies (hereinafter referred to as ministries and central agencies), provincial people's committees, municipal people's committees directly under the central government (hereinafter referred to as provincial people's committees), and agencies and organizations using state budget funds, state capital, state assets, natural resources, and labor in the public sector must ensure the contents prescribed in Article 12 of Decree No. 84/2014/NĐ-CP, the contents of the annual and five-year comprehensive program on thrift and anti-waste of the Government, and specific guidelines set forth in Article 5 of this Circular.

Article 5. Determining Objectives, Targets for Saving, and Requirements to Combat Wastefulness

1. Determining Saving Objectives:

a) The determination of saving objectives shall be conducted annually and every five years.

b) Saving objectives must be determined in order of priority and linked to key tasks of agencies and organizations:

- For sectors using state budget funds, capital, state assets, natural resources, and labor in the public sector at ministries, central agencies, provincial people's committees, the determination of objectives must be based on the objectives of the Comprehensive Program on Practicing Thrift and Combating Wastefulness of the Government, linked to the implementation of annual and five-year socio-economic development plans; industry and sector development programs according to management requirements;

- For sectors managing and using state capital and assets in state-owned enterprises, the objective of reducing management costs and production costs must be set to enhance production efficiency and competitiveness.

2. Determining Saving Targets:

a) The determination of saving targets must be scientifically calculated, linked to the proposed objectives, and suitable to the actual capabilities of ministries, sectors, localities, agencies, organizations, and units; saving targets must be specific and clear, expressed in absolute figures or percentages;

b) Saving targets must closely align with saving targets in various fields according to the Government's Comprehensive Program on Practicing Thrift and Combating Wastefulness annually and every five years, and the following guidelines:

- In managing and using regular budget expenditures: specific through saving targets in organizing conferences, seminars, discussions; sending officials, civil servants, and employees on domestic and international missions; electricity and water usage; office supplies, books, magazines; hosting guests, ceremonial events; organizing festivals, commemorative events;

- In managing and investing in basic construction projects from the state budget: specific through targets to cut or suspend unnecessary or low-efficiency investment projects; saving targets in organizing groundbreaking and completion ceremonies for construction projects; savings from implementing bidding procedures as prescribed; savings from inspection, audit, and settlement review work; savings during project implementation;

- In managing and using land tied to workplace premises; managing and using official residences and state assets: specific through targets to cut or suspend construction projects when the review, arrangement, and utilization of existing premises have not been completed as required by current laws; cutting or suspending plans for unnecessary purchases and repairs of transportation and working equipment that do not meet legal standards; savings from implementing bidding for asset procurement and applying information technology; areas of land, buildings, and official residences recovered due to improper use, non-compliance, wastefulness, abandonment, or illegal occupation;

- In managing, exploiting, and using natural resources: specific through saving targets appropriate to the actual situation, capacity, and management requirements of ministries, sectors, localities, agencies, and organizations. Specifically, for saving targets in managing, exploiting, and using land resources, it must be detailed through the area of land and water bodies reclaimed due to non-compliance with legal regulations, misalignment with planning, wastefulness, inefficiency, abandonment, and illegal occupation;

- In managing and using state budget capital in state-owned enterprises: specific through targets to reduce management costs, other cost factors (raw materials, energy), and lower product costs;

- In saving labor time: specific through targets to reduce administrative procedure hours for businesses and citizens.

3. Determining Requirements to Combat Wastefulness:

a) Combating wastefulness must be linked to saving objectives and targets, administrative reform tasks, ensuring the completion of assigned tasks without affecting the normal operations of agencies and organizations;

b) Combating wastefulness must be concretized into tasks and measures to practice thrift and combat wastefulness in fields regulated by the Law on Practicing Thrift and Combating Wastefulness;

c) Determining requirements to combat wastefulness is a continuous and ongoing task of agencies and organizations.

Article 6. Responsibility for organizing the implementation of the Program on thrift and anti-waste

1. The Minister, Head of central agencies, Chairman of provincial People's Committees shall be responsible for:

a) Organizing the implementation of tasks assigned in the Government's overall program on thrift and anti-waste and their own agency's program on thrift and anti-waste; directing subordinate agencies and organizations under their management to implement the program on thrift and anti-waste that has been established;

b) Organizing the implementation of measures for thrift and anti-waste, with a focus on solutions to achieve thrift targets and anti-waste requirements linked to key tasks during each phase;

c) Supplementing or proposing competent authorities to supplement contents and measures for thrift and anti-waste in the program to ensure effective achievement of thrift targets and anti-waste requirements;

d) Directing, supervising, and inspecting periodically or unexpectedly subordinate units and state-owned enterprises under their management in the implementation of registered thrift targets;

đ) Handling according to their authority those heads of agencies and organizations who fail to implement or implement incorrectly regulations on establishing, issuing, and implementing the program on thrift and anti-waste;

e) Reporting comprehensively on the results of thrift target achievement in their agency's report on thrift and anti-waste to the Ministry of Finance for consolidation into the Government's report on thrift and anti-waste.

2. Heads of state-owned enterprises shall be responsible for building and registering cost-saving targets for management expenses, other cost factors (raw materials, fuel, energy), reducing product costs with the relevant ministry, provincial People's Committee (owner) together with annual production and business plans.

Article 7. Requirements for reporting on thrift and anti-waste

1. Reporting must be done within the time limit stipulated in Article 16 of Decree No. 84/2014/NĐ-CP and the requirements of competent authorities.

2. Data and information in reports must be complete, accurate, and timely.

3. The person signing the report shall be responsible for its truthfulness and objectivity.

Article 8. Content of Reports

1. Content of annual reports:

a) Ministries, central agencies, provincial People's Committees shall report on the implementation of thrift and anti-waste within their management scope and locality. State-owned joint-stock companies with 100% state capital decided by the Prime Minister shall report on the implementation of thrift and anti-waste in their business activities;

b) Ministries managing specific sectors as prescribed in the Law on Thrift and Anti-Waste shall compile and report on the situation and results of thrift and anti-waste nationwide in their assigned fields and national target programs; compiling and reporting on the results of thrift and anti-waste of state-owned enterprises under their management, excluding those specified in point a, Clause 1 of this Article;

c) The content of reports on the results of thrift and anti-waste shall be carried out in accordance with Clause 1 of Article 17 of Decree No. 84/2014/NĐ-CP, Appendix No. 01, Appendix No. 02, Appendix No. 03, and Appendix No. 04 issued along with this Circular.

2. Content of ad hoc reports: to be implemented according to the requirements of the Prime Minister, the Government, the National Assembly Standing Committee, the National Assembly, and guidelines from the Ministry of Finance.

Article 9. Forms and deadlines for submitting reports

1. Reports on the results of thrift and waste prevention shall be submitted simultaneously in the following forms:

a) In writing: Written reports must bear the signature of the head of the agency or organization and be stamped according to regulations;

b) As data files attached to emails sent according to the guidelines of the Ministry of Finance immediately after issuing the written report or via fax upon request.

2. Deadline for submitting annual reports:

a) Ministries, central agencies, provincial People's Committees; State-owned joint stock companies with 100% state capital decided by the Prime Minister to be established within their management scope and business activities shall submit reports to the Ministry of Finance before February 28 of the following year to compile and report to the Government for submission to the National Assembly;

b) Ministers, heads of central agencies, and Chairmen of provincial People's Committees shall provide specific deadlines for reporting by agencies and organizations under their management authority.

Article 10. Rewards for Thrift and Waste Prevention

Cases eligible for rewards, types of rewards, calculation and determination of rewards, and sources of rewards in the practice of thrift and waste prevention shall be implemented in accordance with Clauses 1, 2, 4, and Clause 5 of Article 29 of Decree No. 84/2014/ND-CP. Specifically, regarding the source of rewards stipulated in Clause 3 of Article 29 of Decree No. 84/2014/ND-CP, it shall be implemented as follows:

1. For cases of rewards prescribed by the Law on Competition and Reward, the source of rewards shall be implemented in accordance with the Law on Competition and Reward and guiding documents.

2. For cases applying solutions, innovations, and shortening schedules:

a) If it generates savings in funds, such funds shall be used for rewards;

b) Specifically, for investment projects using state capital, the following shall apply:

- If applying solutions, innovations, and shortening schedules leads to cost savings, the project investor shall report to the competent authority approving the investment project to consider and allocate reward funds within the scope of the saved funds;

- If applying solutions, innovations shortens the schedule without changing the total investment amount, the project investor shall base on the economic and social benefits brought about by the shortened schedule to determine and propose the level and need for reward funds, report to the competent authority approving the investment project to consider and allocate support funds according to the law. If reward funds cannot be allocated, the competent authority shall be reported to consider rewarding according to the Law on Competition and Reward.

3. For cases where waste is prevented due to timely detection and correction, generating savings in funds, such funds shall be used for rewards.

4. For units implementing self-management and self-responsibility mechanisms for staffing and administrative management expenses or public service units implementing self-management and self-responsibility systems for tasks, organizational structures, staffing, and finance, the source of rewards shall be implemented in accordance with Clause 1 of Article 30 of Decree No. 84/2014/ND-CP.

Article 11. Effective Date

1. This Circular takes effect from January 25, 2014.

2. This Circular replaces Circular No. 76/2006/TT-BTC dated August 22, 2006, issued by the Ministry of Finance guiding the implementation of Decree No. 68/2006/NĐ-CP dated July 18, 2006, of the Government detailing and guiding the implementation of certain provisions of the Law on Thrift and Waste Prevention.

3. During the implementation process, if there are difficulties or obstacles, agencies and units are requested to reflect them to the Ministry of Finance for research and appropriate amendments and supplements./.