Circular No. 31/2019/TT-BTC guides the determination of funding sources and the preparation of budgets, management, use, and settlement of funds for implementing the policy of streamlining the administrative apparatus.

CIRCULAR

GUIDELINES ON THE DETERMINATION OF FUNDS AND THE PREPARATION, MANAGEMENT, USE, AND SETTLEMENT OF EXPENSES FOR IMPLEMENTING THE REDUCTION OF STAFF ESTABLISHMENTS POLICY

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on the policy for reducing staff establishments;

Pursuant to Decree No. 113/2018/NĐ-CP dated August 31, 2018 of the Government amending and supplementing certain articles of Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on the policy for reducing staff establishments;

At the proposal of the Director of the Administrative and Public Service Financial Department;

After reaching consensus with the Ministry of Home Affairs, the Minister of Finance issues this Circular guiding the determination of funds and the preparation, management, use, and settlement of expenses for implementing the policy for reducing staff establishments;

Article 1. Scope of Regulation and Applicability

This Circular stipulates the determination of funds and the preparation, management, use, and settlement of expenses for implementing the policy for reducing staff establishments for agencies, organizations, and units specified in Article 1 of Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on the policy for reducing staff establishments (hereinafter referred to as Decree No. 108/2014/NĐ-CP) and the subjects subject to the policy for reducing staff establishments specified in Article 2 of Decree No. 108/2014/NĐ-CP.

Article 2. Sources of funds for implementing the policy for reducing staff establishments in agencies of the Party, State, and political-social organizations from central to commune level

The funds for implementing the policy for reducing staff establishments for cadres, civil servants, and indefinite-term labor contracts as prescribed in Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government on implementing the system of contracts for certain types of work in administrative state agencies and public service units (hereinafter referred to as Decree No. 68/2000/NĐ-CP) in agencies of the Party, State, and political-social organizations from central to commune level shall be implemented as follows:

1. For agencies authorized by competent authorities to implement the self-financing mechanism such as public service units that self-finance investment and recurrent expenditures or public service units that self-finance recurrent expenditures; other agencies currently applying special mechanisms (in cases where the special mechanism regulations already include funds for implementing the policy for reducing staff establishments: Tax agencies, State Bank, Social Insurance): Utilize the unit's own funds to implement the policies for reducing staff establishments as prescribed in Decree No. 108/2014/NĐ-CP and Decree No. 113/2018/NĐ-CP dated August 31, 2018 of the Government amending and supplementing certain articles of Decree No. 108/2014/NĐ-CP (hereinafter referred to as Decree No. 113/2018/NĐ-CP)).

2. For the remaining agencies:

a) Agencies and units use annual budget allocations (excluding the portion of state budget funds allocated for implementing the policy for reducing staff establishments as prescribed in Point b Clause of this Article) and retained income of the unit (for units with income) to pay the following benefits:

- A one-time allowance equivalent to three months' current salary as prescribed in Clause 1 Article 6, Point a Clause 1 Article 7 and Clause 3 Article 8 of Joint Circular No. 01/2015/TTLT-BNV-BTC dated April 14, 2015 of the Ministry of Home Affairs and the Ministry of Finance guiding certain provisions of Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on the policy for reducing staff establishments (hereinafter referred to as Joint Circular No. 01/2015/TTLT-BNV-BTC);

- Support for social insurance and health insurance contributions for those within the scope of reduction of staff establishments who wish to attend vocational training before being dismissed as prescribed in Clause 1 Article 8 of Joint Circular No. 01/2015/TTLT-BNV-BTC;

- Continue paying salaries during vocational training and providing a subsidy for vocational training costs for individuals within the age range provided the opportunity to attend vocational training as prescribed in Clause 1 and Clause 2 Article 8 of Joint Circular No. 01/2015/TTLT-BNV-BTC.

b) The state budget allocates funds to implement the remaining benefits according to the principle:

- For cadres, civil servants, and indefinite-term labor contracts under the provisions of Decree No. 68/2000/NĐ-CP managed centrally, the central budget ensures allocation in the annual state budget estimates assigned to Ministries, ministerial-level agencies, government agencies, and organizations established by the Government or the Prime Minister which are not public service units (hereinafter referred to as Ministries, agencies at central level).

- For cadres, civil servants, and indefinite-term labor contracts under the provisions of Decree No. 68/2000/NĐ-CP managed locally, local budgets ensure funding for implementing the benefits as prescribed in the current regulations on the division of state budget responsibilities and sourced from the implementation of salary reform already allocated in the annual state budget estimates of the agency or unit. Localities aggregate the demand for funds to implement the policy for reducing staff establishments into the demand for funds to implement salary reform annually.

Article 3. Sources of funds for implementing the policy of streamlining the establishment in public service units

The funds for implementing the policy of streamlining the establishment for civil servants, officials, and indefinite-term labor contracts as stipulated in Decree No. 68/2000/ND-CP in public service units shall be implemented as follows:

1. For public service units that self-fund regular expenses and investment costs; and public service units that self-fund regular expenses: Utilize from the unit's revenue and other lawful sources of funding according to Decree No. 16/2015/ND-CP dated February 14, 2015, of the Government on the mechanism of autonomy for public service units (hereinafter referred to as Decree No. 16/2015/ND-CP) and other Government Decrees on the mechanism of autonomy in various fields to implement policies of streamlining the establishment as prescribed in Decree No. 108/2014/ND-CP and Decree No. 113/2018/ND-CP..

2. For public service units that partially fund regular expenses and public service units fully funded by the state budget for regular expenses according to Decree No. 16/2015/ND-CP and other Government Decrees on the mechanism of autonomy in various fields:

a) Units utilize retained revenue as prescribed, annual regular expense budget support (if any), and other lawful sources of funding to pay for the following benefits:

- Funds to implement streamlining the establishment benefits for civil servants and officials as stipulated in Clause 1 and 2, Article 2 of Decree No. 108/2014/ND-CP, including:

+ A one-time allowance equivalent to three months' current salary as prescribed in Clause 1, Article 6, Point a, Clause 1, Article 7, and Clause 3, Article 8 of Circular Joint No. 01/2015/TTLT-BNV-BTC.

+ Support for social insurance and health insurance during vocational training for those within the age limit who wish to attend vocational training before being laid off as stipulated in Clause 1, Article 8 of Circular Joint No. 01/2015/TTLT-BNV-BTC.

+ Continue paying salaries during vocational training and providing vocational training allowances for individuals within the age limit provided with conditions to attend vocational training as stipulated in Clause 1 and Clause 2, Article 8 of Circular Joint No. 01/2015/TTLT-BNV-BTC.

- Units utilize retained revenue, annual regular expense budget support (if any), and other lawful sources of funding to pay for streamlining the establishment policies for indefinite-term labor contracts as stipulated in Decree No. 68/2000/ND-CP.

b) The state budget allocates funds to implement remaining benefits for civil servants and officials as stipulated in Clause 1 and 2, Article 2 of Decree No. 108/2014/ND-CP according to the principle:

- For civil servants and officials in central-managed public service units, the central budget ensures funding, which is included in the annual budget of public service units.

- For civil servants and officials in local-managed public service units, the local budget ensures funding for implementation of benefits according to the current state budget decentralization regulations and is allocated from the source of salary reform already included in the unit's budget.

Article 4. Sources of funds for implementing the policy on streamlining the workforce for other cases

1. Workers recruited by public service units from October 29, 2003 onwards, who fall under the category of streamlining the workforce as stipulated in Point c, d Clause 1 Article 6 Decree No. 108/2014/ND-CP amended and supplemented in Clause 2 Article 1 Decree No. 113/2018/ND-CP shall have the funds to implement the policy on streamlining the workforce for this category sourced from the regular operating budget of the public service unit. 2. The funds for implementing the policy on streamlining the workforce for the subjects specified in Clause 6 Article 6 Decree No. 108/2014/ND-CP and Clause 5 Article 1 Decree No. 113/2018/ND-CP shall be sourced from the operational budget of the association as prescribed.

3. The funds for implementing the policy on streamlining the workforce for civil servants, public officials, indefinite-term labor contracts for certain positions as prescribed by law working in the Vietnam General Confederation of Labor shall be sourced from the 2% union budget.

4. The funds for implementing the policy on streamlining the workforce for the subjects specified in

Clause 4 Article 6 Decree No. 108/2014/ND-CP and Clause 4 Article 1 Decree No. 113/2018/ND-CP shall be sourced from the Redundant Labor Support Fund established according to the regulations of law for the reorganization of state-owned enterprises and companies. Article 5. Preparation, allocation, utilization, and settlement of state budget funds for implementing the policy on streamlining the workforce

The preparation, allocation, utilization, and settlement of state budget funds for implementing the policy on streamlining the workforce shall be carried out in accordance with the State Budget Law and guiding documents thereof. This Circular supplements some provisions as follows:

1. Preparation of state budget funds for implementing the policy on streamlining the workforce:

Based on the Streamlining Workforce Plan of ministries and central agencies that have been approved, the implementation status of the policy on streamlining the workforce in the current year, and the plan for streamlining the workforce in the planning year, ministries and central agencies shall prepare the budget for implementing the policy on streamlining the workforce in the planning year according to Tables 1a, 1b, 1c, 1d, and Table 2. At the same time, they shall aggregate the funds for implementing the policy on streamlining the workforce allocated by the state budget as stipulated in Point b Clause 2 Article 2 and Point b Clause 2 Article 3 of this Circular into the annual state budget and submit it to the financial authority at the same level for approval by the competent authority to allocate the budget for streamlining the workforce in the annual budget of ministries and central agencies.

a) For Ministries and central agencies:

For the year 2019, based on the Streamlining Workforce Plan of ministries and central agencies that have been approved by the competent authority, the implementation status of the policy on streamlining the workforce in 2018, and the plan for streamlining the workforce in 2019, ministries and central agencies shall prepare the budget for implementing the policy on streamlining the workforce allocated by the state budget in 2019 and submit it to the Ministry of Finance for supplementary budget approval according to regulations.

Based on the Streamlining Workforce Plan of localities that have been approved, the implementation status of the policy on streamlining the workforce in the current year, and the plan for streamlining the workforce in the planning year, localities shall prepare the budget for implementing the policy on streamlining the workforce in the planning year and integrate it into the overall needs for salary reform in the annual state budget.

b) For localities:

2. Allocation and utilization of state budget funds for implementing the policy on streamlining the workforce:

The state budget funds allocated for implementing the policy on streamlining the workforce shall be allocated to non-autonomous operating budgets and non-recurring budgets for budget-using units.

a) For Ministries and central agencies:

Based on the list of streamlining the workforce that has been approved by the competent authority, ministries and central agencies shall proactively utilize the annual state budget they are assigned to implement payments of benefits and policies for those streamlined according to regulations.

Twice a year (no later than July 15 each year reporting on the results of streamlining the workforce for the first six months of the year and no later than January 15 each year reporting on the results of streamlining the workforce for the last six months of the previous year), ministries and central agencies shall compile the results of streamlining the workforce, including the list of streamlined personnel (accompanied by explanations clarifying the reasons for streamlining each individual) and the funds for streamlining the workforce of ministries and central agencies according to Tables 1a, 1b, 1c, 1d, and Table 3 and submit them to the Ministry of Home Affairs and the Ministry of Finance.

Within 15 working days from the date of receipt of the report on the results of streamlining the workforce and the written comments of the Ministry of Home Affairs as stipulated in Clause 15 Article 1 Decree No. 113/2018/ND-CP regarding the streamlining of the workforce by ministries and central agencies, the Ministry of Finance shall be responsible for checking the calculation of benefits and policies, and the funds for streamlining the workforce according to regulations.

In cases where the streamlining of the workforce does not comply with the prescribed legal objects, the direct management agency, organization, or unit of cadres, civil servants, and public officials shall be responsible for recovering and depositing the budget for the benefits and policies received by cadres, civil servants, and public officials due to the incorrect streamlining.

In cases where the recipient of the policy on streamlining the workforce does not comply with the prescribed legal objects and has passed away, the direct management agency, organization, or unit of the subject shall use

the annual budget allocated to Party and State agencies, political-social organizations ( outside the portion of funds stipulated inPoint b Clause 2 Article 2 of this Circular); or the revenue of the unit, the annual state budget support for regular expenses allocated (if any) (outside the portion of funds stipulated in Point b Clause 2 Article 3 of this Circular) and other lawful sources of funds for public service units ensuring part of regular expenses and public service units fully guaranteed by the state budget for regular expenses to deposit the budget for the funds already paid to the object allocated by the state budget the state budget will not supplement funds.; state budget does not supplement funds.

b) For localities:

The allocation and use of state budget funds for implementing the policy of streamlining the establishment of localities shall be carried out in accordance with the provisions of the State Budget Law and guiding documents of the Law.

Based on the list of streamlining the establishment that has been approved by the competent authority, local agencies and units shall proactively use the annual state budget estimate assigned to them to implement payments of benefits and policies for streamlined personnel according to the regulations.

Annually, twice a year (the latest by July 15th each year reporting the results of streamlining the establishment for the first six months of the year and the latest by January 15th each year reporting the results of streamlining the establishment for the last six months of the previous year), compile the results of streamlining the establishment, including the list of streamlined personnel (accompanied by explanations clarifying the reasons for streamlining each individual) and the implementation funds for streamlining the establishment of their locality according to forms 1a, 1b, 1c, 1d, and form 3, and submit them to the Ministry of Home Affairs and the Ministry of Finance.

Within fifteen working days from the date of receipt of the report on the results of streamlining the establishment and the written comments of the Ministry of Home Affairs pursuant to Clause 15, Article 1 of Decree No. 113/2018/ND-CP on streamlining the establishment of localities, the Ministry of Finance shall be responsible for checking the calculation of benefits and policies, and the implementation funds for streamlining the establishment according to the regulations.

In cases where streamlining the establishment is not implemented correctly according to the prescribed objects under the law, the agency, organization, or unit directly managing cadres, civil servants, and public officials shall be responsible for recovering and remitting to the state budget the benefits and policies for streamlining the establishment that have been granted to cadres, civil servants, and public officials. In cases where the person enjoying the streamlining policy does not meet the prescribed criteria and has passed away, localities shall use the local state budget to settle the accounts; such cases shall not be included in the annual demand for salary reform.

c) In cases where Ministries, central agencies, and localities have not yet developed and had approved by the competent authority a proposal for streamlining the establishment, if there are objects subject to streamlining according to Decree No. 108/2014/ND-CP and Decree No. 113/2018/ND-CP; Ministries, central agencies, and localities shall use the state budget estimate assigned to them to implement the streamlining policy and bear responsibility for the objects subject to streamlining according to the regulations, while also compiling these objects into the proposal for streamlining the establishment of Ministries, central agencies, and localities, and reporting the results of streamlining the establishment and the implementation funds for streamlining the establishment according to the regulations.

3. On the settlement of funds for implementing the streamlining policy:

Based on the inspection documents of the Ministry of Home Affairs and the Ministry of Finance regarding the objects of streamlining the establishment and the funds for implementing the streamlining policy, Ministries, central agencies, and localities shall settle the funds for implementing the streamlining policy according to the regulations.

The funds for implementing the streamlining policy shall be consolidated into the financial reports and settlement reports of agencies and units annually in accordance with the State Budget Law, Accounting Law, and guiding documents.

Article 6. Implementation Organization

This Circular takes effect from July 25, 2019 until December 31, 2021 and applies from the 2019 fiscal year.

2. Chapter III Joint Circular No. 01/2015/TTLT-BNV-BTC dated April 14, 2015, of the Ministry of Home Affairs and the Ministry of Finance guiding certain provisions of Decree No. 108/2014/NĐ-CP dated November 20, 2014, of the Government on policies for streamlining the establishment of personnel shall cease to be effective from the date this Circular takes effect.

3. When the referenced documents for application in this Circular are amended, supplemented, or replaced by new documents, they shall be applied according to the amended, supplemented, or replacing documents.

4. During the implementation process, if there are difficulties or obstacles, agencies and units are requested to report to the Ministry of Finance for research and resolution.

ATTACHED DOCUMENT