Decree No. 43/2006/ND-CP on autonomy and responsibility for the performance of tasks, organizational structure, staffing, and finance of public service units

DECREE

Specifies the autonomy and responsibility for performing tasks, organizational structure, staffing, and finance for public service units.

Public service units must be those established by competent state authorities.session number

________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

||| Pursuant to the State Budget Law No. 01/2002/QH 11 dated December 16, 2002;

Considering the proposal of the Minister of Finance and the Minister of Home Affairs,

DECREE

PART I

GENERAL PROVISIONS

Article 1. Scope and objects regulated

1. This Decree stipulates the autonomy and responsibility for performing tasks, organizational structure, staffing, and finance for public service units (referred to as public service units) established by competent state authorities.

The unit exercising autonomy and responsibility must be an independent budget entity, having its own seal and separate account, and organizing accounting according to the Accounting Law.

2. For the Voice of Vietnam Radio, Vietnam News Agency, public service units with special operational procedures, and public service units under the Ministry of National Defense, the Ministry of Public Security, political organizations, and political-social organizations, this Decree shall apply.

3. Scientific and technological organizations shall implement according to Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government on the mechanism of autonomy and responsibility of public scientific and technological organizations.

Article 2. Objectives of exercising autonomy and responsibility

1. Granting autonomy and responsibility to public service units in organizing work, restructuring organizational structures, using labor and financial resources to complete assigned tasks; fully utilizing the capabilities of the unit to provide high-quality services to society; increasing revenue to gradually address income for employees.

2. Implementing the policy of socialization in providing services to society, mobilizing community contributions to develop public service activities, gradually reducing state budget subsidies.

3. Exercising autonomy and responsibility for public service units, the State still invests to ensure that public service activities continue to develop; ensuring that policy and social beneficiaries, ethnic minorities, remote areas, and particularly difficult regions receive better services according to regulations.

4. Clearly distinguishing the state management mechanism for public service units from the state management mechanism for administrative agencies.

Article 3. Principles of exercising autonomy and responsibility

1. Completing assigned tasks. For production and service provision activities (referred to as service activities), they must align with assigned functions and tasks, match the professional capacity and finances of the unit.

2. Implement transparency and democracy in accordance with the provisions of the law.

3. Exercising autonomy must be coupled with assuming responsibility before the immediate superior supervisory agency and the law for their decisions; at the same time, being subject to inspection and supervision by competent state agencies.

4. Ensure the interests of the State, rights and obligations of organizations and individuals as prescribed by law.

Article 4. Transition to forms of operation

The State encourages public service units to transition to business operations or non-public forms to fully utilize their capabilities in implementing unit activities as prescribed by law.

Public service units transitioning to business or non-public forms shall enjoy preferential policies on tax, land, and state-owned assets invested according to the law.

Chapter II

REGULATIONS ON AUTONOMY AND RESPONSIBILITY FOR PERFORMING TASKS, ORGANIZATIONAL STRUCTURE, AND STAFFING

AUTONOMY AND RESPONSIBILITY FOR PERFORMING TASKS

PART 1

AUTONOMY AND RESPONSIBILITY FOR

PERFORMING TASKS

Article 5. Right to autonomy and responsibility for the performance of tasks

Public service units shall exercise the right to autonomy and responsibility in determining tasks, developing plans, and organizing activities, including:

1. For state-assigned tasks or orders, the unit may proactively decide on measures to ensure quality and progress.

2. For other activities, the unit has the right to autonomy and responsibility for the following matters:

a) Organizing service activities in accordance with the specialized field, capacity of the unit, and legal regulations;

b) Joint ventures and collaborations with organizations and individuals to provide services that meet societal needs in compliance with legal regulations.

3. Public service units that self-fund their operational costs or partially self-fund their operational costs (as stipulated in Article 9 of this Decree), depending on the field and capacity of the unit, are entitled to:

a) Decide on purchasing assets and investing in infrastructure development from the fund for public service activities, raised capital, according to the approved planning by the competent authority;

b) Participate in bidding for service activities consistent with the specialized field of the unit;

c) Utilize assets for joint ventures, collaborations, or joint venture contributions with domestic and foreign organizations and individuals to invest in construction and purchase equipment to serve service activities in accordance with the functions and tasks of the unit as currently regulated by the State.

4. The Ministry managing the sector or field shall coordinate with the Ministry of Home Affairs and the Ministry of Finance to guide the implementation of the right to autonomy and responsibility for task performance within the scope of national management of the Ministry.

PART 2

RIGHT TO AUTONOMY AND RESPONSIBILITY FOR ORGANIZATIONAL STRUCTURE, STAFFING, AND PERSONNEL

STAFFING AND PERSONNEL

Article 6. On organizational structure

1. Regarding new establishment: public service units may establish subordinate public service organizations to conduct service activities in accordance with assigned functions and tasks; consistent with the plan for autonomy and responsibility for task performance, organizational structure, staffing, and self-funded operation (except for public service organizations where such authority is prescribed by law to be vested in the Government, Prime Minister, Minister managing the sector, or Chairman of the People's Committee at the provincial level).

2. Regarding merger and dissolution: public service units may merge or dissolve subordinate organizations (except for public service organizations where such authority is prescribed by law to be vested in the Government, Prime Minister, Minister managing the sector, or Chairman of the People's Committee at the provincial level).

3. Specific functions, tasks, and operational regulations of subordinate organizations shall be stipulated by the head of the public service unit (except for public service organizations where such authority is prescribed by law to be vested in the Government, Prime Minister, Minister managing the sector, or Chairman of the People's Committee at the provincial level).

Article 7. On staffing

1. For public service units that self-fund their operational costs, they may independently determine staffing levels. For public service units that partially self-fund their operational costs and those fully funded by the state budget, based on assigned functions and tasks, actual work requirements, staffing standards, and financial capacity of the unit, the head of the unit shall develop annual staffing plans to submit to the direct supervisory agency for consolidation and resolution within their authority.

2. The head of the unit may decide to enter into contracts for hiring or outsourcing work for tasks that do not require permanent staffing; sign contracts and other forms of cooperation with experts and scientists both domestically and internationally to meet the professional requirements of the unit.

Article 8. On the management and use of officials and civil servants

1. Decide on the recruitment of officials and civil servants through competitive examinations or selection processes.

2. Appoint individuals to civil service ranks (for positions equivalent to principal officers and below), enter into employment contracts with those recruited, based on ensuring the required qualifications for the rank and aligning with the prescribed structure of professional positions according to the law.

3. Arrange, allocate, and utilize officials and civil servants in a manner that matches assigned tasks with their respective ranks and state regulations concerning the performance of duties and public services.

4. Decide on the transfer, assignment, retirement, resignation, termination of employment contracts, commendation, and disciplinary actions for officials and civil servants under their management in accordance with the law.

5. Decide on timely and early salary increments within the same rank, and accept and transfer ranks for positions equivalent to principal officers and below, based on conditions and standards set forth by law.

6. State-affiliated units, ministries equivalent to ministries, government agencies, and provincial people's committees directly under the central government may decide to invite foreign experts to work, send unit staff abroad for work and study to enhance professional skills, and have relevant authorities handle entry and exit procedures in accordance with the law.

7. The ministry managing the sector or field shall, in collaboration with the Ministry of Home Affairs and the Ministry of Finance, guide the implementation of self-management and self-responsibility rights regarding organizational structures, staffing, and personnel for state-run enterprises within its jurisdiction.

Chapter III

PROVISIONS ON SELF-MANAGEMENT AND SELF-RESPONSIBILITY RIGHTS

FINANCIAL MATTERS

PART 1

GENERAL PROVISIONS

Article 9. Classification of State-Run Enterprises

1. Based on the revenue from state-run activities, state-run enterprises are classified to exercise self-management and self-responsibility rights over financial matters as follows:

a) Enterprises that fully cover their regular operational costs from their own activity revenues (referred to as enterprises that self-fund their operational costs);

b) Enterprises that partially cover their regular operational costs from their own activity revenues, with the remainder funded by the state budget (referred to as enterprises that partially self-fund their operational costs);

c) Enterprises with low activity revenue, without activity revenue, and whose regular operational costs are fully covered by the state budget (referred to as enterprises fully funded by the state budget for their operational costs).

2. For special state-run enterprises under Vietnam Radio, Vietnam News Agency, and other units with unique operational processes as stipulated in Clause 2, Article 1 of this Decree, the determination of self-management and self-responsibility rights over financial matters for these enterprises shall follow the classification of the higher-level enterprise.

3. The classification of state-run enterprises as provided above shall be stable for a period of three years. After the three-year period, reclassification will be reviewed for appropriateness.

Article 10. Fulfillment of Obligations to the State Budget

State-run enterprises engaged in service activities must register, declare, and pay all types of taxes and other amounts (if applicable), and enjoy tax exemptions and reductions as prescribed by law.

Article 11. Mobilizing capital and borrowing credit funds

Units with service activities may borrow funds from credit organizations, mobilize capital from officers and staff within the unit to invest in expanding and improving the quality of public service activities in accordance with their functions and tasks, and bear responsibility for repaying borrowed debts in accordance with the provisions of the law.

Article 12. Management and use of assets

Units shall implement investment, procurement, management, and use of state assets in accordance with the laws on state asset management at public units. For fixed assets used in service activities, depreciation recovery must be carried out according to regulations applicable to state-owned enterprises. The amount of depreciation of fixed assets and proceeds from the liquidation of assets funded by the state budget that the unit retains shall be used to supplement the Development Fund for Public Services.

The amount of depreciation and proceeds from the liquidation of assets funded by loans shall be used to repay the loans. If the loan has been fully repaid, the remaining amount (if any) may be retained to supplement the Development Fund for Public Services.

Article 13. Transaction Accounts

Public units shall open accounts at the State Treasury to reflect budgetary funds under the National Budget Law; they may also open deposit accounts at banks or the State Treasury to reflect revenues and expenditures of service activities.

PART 2

RIGHTS TO SELF-GOVERNANCE AND FINANCIAL RESPONSIBILITY FOR

PUBLIC UNITS THAT SELF-FUND OPERATING COSTS AND PUBLIC UNITS

THAT PARTIALLY SELF-FUND OPERATING COSTS

Article 14. Sources of Finance

1. Budgetary funds provided by the state budget, including:

a) Operating expenses to ensure regular activities in performing functions and tasks for units partially self-funding operating costs (after balancing service revenue sources); allocated by the competent authority within the approved budget;

b) Funds for implementing scientific and technological tasks (for units not being scientific and technological organizations);

c) Funds for implementing training and capacity building programs for officers and staff;

d) Funds for implementing national target programs;

đ) Funds for implementing tasks ordered by state agencies with authority (surveys, planning, surveys, other tasks);

e) Funds for implementing urgent tasks assigned by the competent authority;

g) Funds for implementing personnel reduction policies as prescribed by the state (if any);

h) Capital for basic construction projects, procurement of equipment, major repairs of fixed assets serving public services according to approved projects within the annual budget allocation;

i) Counterpart funds for implementing projects with foreign sources of funding approved by the competent authority;

k) Other funds (if any).

2. Revenue from public service activities, including:

a) Portion retained from fees and charges belonging to the state budget as prescribed by law;

b) Revenue from service activities;

c) Revenue from other public service activities (if any);

d) Dividends from joint ventures, cooperation activities, and bank deposits.

3. Aid, grants, gifts, and donations in accordance with the law.

4. Other sources, including:

a) Borrowed capital from credit organizations, capital mobilized from officers and staff within the unit;

b) Joint venture and cooperation capital of domestic and foreign organizations and individuals as prescribed by law.

Article 15. Content of Expenditure

1. Regular expenses; including:

a) Expenses for activities according to functions and tasks assigned by the competent authority;

b) Expenses for providing services related to fee and charge collection activities;

c) Expenses for service activities (including expenses to fulfill state budget obligations, depreciation of fixed assets as prescribed, repayment of capital, and interest on loans as prescribed by law).

2. Irregular expenses; including:

a) Expenses for implementing scientific and technological tasks;

b) Expenses for implementing training and capacity building programs for officers and staff;

c) Expenses for implementing national target programs;

d) Expenses for implementing tasks ordered by the state (surveys, planning, surveys, other tasks) according to prices or price ranges prescribed by the state;

đ) Expenses for counterpart funds for implementing projects with foreign sources of funding as prescribed;

e) Expenses for implementing urgent tasks assigned by the competent authority;

g) Expenses for implementing personnel reduction policies as prescribed by the state (if any);

h) Expenses for basic construction projects, procurement of equipment, major repairs of fixed assets for approved projects;

i) Expenses for implementing projects from foreign aid sources;

k) Expenses for joint venture and cooperation activities;

Other expenses as prescribed (if any).

Article 16. Autonomy over Revenue Collection and Collection Levels

1. Public service units entrusted by competent state agencies to collect fees and charges must collect them accurately and fully according to the collection levels and objects specified by the competent state agencies.

In cases where the state authority prescribes a framework for collection levels, the unit shall determine specific collection levels based on the needs for expenditure serving activities and the society's capacity to contribute, but such levels must not exceed the prescribed framework.

The unit shall implement exemption and reduction policies for policy and social beneficiaries as stipulated by the state.

2. For products and services ordered by state agencies, the collection level shall be determined according to the unit price set by the competent state agency; if the product has not been priced by the competent state agency, the collection level shall be determined based on the approved cost estimate by the same-level financial authority.

3. For service activities conducted under contracts with domestic and foreign organizations and individuals, and joint ventures and collaborations, the unit may decide specific revenue collection levels according to the principle of ensuring sufficient coverage of costs and accumulation.

Article 17. Autonomy over Financial Resource Utilization

1. Based on assigned tasks and financial resource capabilities, for regular expenditure items as stipulated in Clause 1, Article 15 of this Decree, the head of the unit may decide certain management and operational activity expenditure levels higher or lower than those prescribed by the competent state agency.

2. Depending on the nature of the work, the head of the unit may decide the cost allocation method for each department and subordinate unit.

3. Investment construction, procurement, and major repair of assets shall be carried out in accordance with the provisions of the law and this Decree.

Article 18. Wages, remuneration, and income

1. Wages and remuneration:

a) For activities implementing state-assigned functions and tasks, the cost of wages and remuneration for cadres, civil servants, and employees (referred to as employees) shall be calculated based on the rank and position salary scales prescribed by the state;

b) For activities providing products ordered by the state with wage rates included in the product unit price approved by the competent authority, the unit shall calculate based on the prescribed wage rate. If the product has not been prescribed a wage rate by the competent authority, the unit shall calculate based on the rank and position salary scales prescribed by the state;

c) For service activities with separate cost accounting, the cost of wages and remuneration for employees shall be applied according to the wage system in state-owned enterprises. If there is no separate cost accounting, the unit shall calculate based on the rank and position salary scales prescribed by the state.

2. The state encourages public service units to increase revenue, reduce expenditures, streamline staffing, and enhance employee income based on completing assigned tasks, after fulfilling all obligations to the state budget; depending on the financial results of the year, the unit may determine the total annual income payment amount for the unit, including:

a) For units that self-fund their operating expenses, the total annual income for employees shall be decided after setting aside the development fund for public services as stipulated in Point a, Clause 1, Article 19 of this Decree;

b) For public service units that partially self-fund their operating expenses, the total annual income for employees may be decided, but not exceeding three times the annual rank and position salary fund prescribed by the state after setting aside the development fund for public services as stipulated in Point b, Clause 1, Article 19 of this Decree.

Income payments to employees in the unit shall follow the principle that those with high work efficiency and significant contributions to increased revenue and reduced expenditures shall receive more. The head of the unit shall make income payments according to the internal expenditure regulations of the unit.

3. When the state adjusts wage regulations, increasing the minimum wage; the additional wage according to the state-prescribed system (referred to as additional wage according to the state-prescribed system) shall be covered by public service units from business revenues and other sources as prescribed by the Government.

If the above sources are insufficient to cover the additional wage according to the state-prescribed system, the shortfall will be supplemented by the state budget to ensure the general minimum wage as prescribed by the Government.

Article 19. Utilization of Financial Activity Results in the Year

1. Annually, after covering all expenses, paying taxes, and other required payments, any surplus revenue over expenses (if any) shall be utilized in the following sequence:

a) For units that self-fund their operating expenses:

- At least 25% to establish the Fund for Developing Service Activities;

- Paying additional income to employees;

- Establishing Reward Fund, Welfare Fund, and Income Stability Reserve Fund. For the Reward Fund and Welfare Fund, the maximum contribution shall not exceed three months' average actual wage, remuneration, and additional income paid during the year.

The amount of additional income payment and establishment of funds shall be decided by the head of the public service unit according to the internal expenditure regulations of the unit.

b) For units that partially self-fund their operating expenses:

- At least 25% to establish the Fund for Developing Service Activities;

- Paying additional income to employees as stipulated in Point b, Clause 2, Article 18 of this Decree;

- Establishing Reward Fund, Welfare Fund, and Income Stability Reserve Fund. For the Reward Fund and Welfare Fund, the maximum contribution shall not exceed three months' average actual wage, remuneration, and additional income paid during the year;

In the case where the difference between revenue and expenditure in a year is equal to or less than one times the salary fund for rank and position in that year, the unit may use it to pay additional income to employees and establish four funds: the Income Stability Reserve Fund, the Reward Fund, the Welfare Fund, and the Development Activity Fund. Among these, the maximum amount to be set aside for the Reward Fund and the Welfare Fund shall not exceed three months' average actual salary, wage, and additional income earned in the year. The level of additional income payment and the establishment of the funds shall be decided by the head of the unit according to the internal expenditure regulations of the unit.

2. The unit shall not use additional income payments and fund establishments from sources of funds specified in points c, d, e, g, h, i, k of Clause 1, Article 14 of this Decree and the funds of tasks to be carried over to the next year for implementation.

Article 20. Use of Funds

1. The Development Activity Fund is used for investment and development to enhance the operation of the activity, supplement capital for construction of material facilities, purchase of equipment and working tools, application of scientific and technological progress, additional training and skill enhancement for staff members of the unit; it can also be used for joint ventures and collaborations with organizations and individuals both domestically and internationally to organize service activities in accordance with assigned functions and capabilities and in compliance with laws. The use of the Fund is decided by the head of the unit according to the internal expenditure regulations of the unit.

2. The Income Stability Reserve Fund is used to ensure income for employees.

3. The Reward Fund is used to provide regular and extraordinary rewards to groups and individuals inside and outside the unit based on work performance and contributions to the unit's activities. The reward levels are determined by the head of the unit according to the internal expenditure regulations of the unit.

4. The Welfare Fund is used for the construction and repair of welfare facilities, funding collective welfare activities for employees within the unit; providing emergency assistance to employees, including those retiring or losing their health; and additional funding for employees undergoing organizational streamlining. The head of the unit decides on the use of the fund according to the internal expenditure regulations of the unit.

PART 3

AUTONOMY AND SELF-RESPONSIBILITY RIGHTS FOR THE UNIT

FULLY FUNDED BY THE STATE BUDGET

OPERATING EXPENSES BUDGET

Article 21. Sources of Finance

1. State budget funds; including:

a) Funds ensuring regular operations to fulfill assigned functions and tasks; allocated by the direct superior management agency within the approved budget;

b) Funds for implementing scientific and technological tasks (for units not being scientific and technological organizations);

c) Funds for implementing training and capacity building programs for officers and staff;

d) Funds for implementing national target programs;

d) Funds for urgent tasks assigned by the competent authority;

e) Funds for implementing the policy of organizational streamlining as prescribed by the state (if applicable);

g) Capital for basic construction, procurement of equipment, and major repairs of fixed assets serving the operational activities according to projects approved by the competent authority within the annual budget;

h) Counterpart funds for implementing projects with foreign capital approved by the competent authority;

i) Other funds (if any).

2. Revenue from operational activities (for units with low revenue), including:

a) The portion retained from fees and charges collected by the unit as stipulated by the state;

b) Revenue from service activities;

c) Other revenues (if any).

3. Assistance, donations, gifts, and grants (if any) in accordance with the law.

4. Other sources as prescribed by law (if any).

Article 22. Contents of Expenditure

1. Regular expenditure, including:

a) Expenses for activities according to functions and tasks assigned by the competent authority;

b) Expenditure for activities serving the implementation of fee-charging work and service fees;

c) Expenditure for service activities (including expenditures to fulfill budgetary obligations to the state budget, depreciation of fixed assets according to regulations, capital repayment, and interest payment on loans as prescribed by law).

2. Irregular expenditure:

a) Expenditure for scientific research and technological tasks;

b) Expenses for implementing training and capacity building programs for officers and staff;

c) Expenses for implementing national target programs;

d) Counterpart capital expenditure for projects with foreign capital;

đ) Expenditure for urgent tasks assigned by competent authorities;

e) Expenditure for implementing staff reduction according to state regulations (if applicable);

g) Investment expenditure for basic construction, procurement of equipment, major repairs of fixed assets for projects approved by competent authorities;

h) Expenditure for projects funded from external aid sources;

i) Other expenditures as prescribed by law (if applicable).

Article 23. Autonomy over Revenue and Collection Levels (for units with low revenue sources)

1. Public service units entrusted by state agencies with authority to collect fees and charges must collect accurately and fully according to the collection levels and objects specified by state agencies with authority.

In cases where state agencies with authority prescribe a range for fee collection levels, units shall determine specific collection levels based on their operational needs, social contributions, and the type of activity and object, but such levels must not exceed the prescribed range.

Units shall implement exemption and reduction policies for social policy beneficiaries as stipulated by the state.

2. For service activities conducted under contracts with domestic and foreign organizations and individuals, units may decide specific revenue and collection levels according to the principle of ensuring sufficient coverage of costs and accumulation.

Article 24. Autonomy in Financial Resource Utilization

1. Based on assigned tasks and financial resource capacity, for regular expenditures as stipulated in Clause 1 of Article 22 of this Decree, unit heads may decide certain management expenditure and operational expenditure levels, but these must not exceed the levels prescribed by state agencies with authority.

2. Based on the nature of the work, unit heads may decide cost allocation methods for each department and subordinate unit.

3. Investment construction, procurement, and major repair of assets shall be carried out in accordance with the provisions of the law and this Decree.

Article 25. Wages, Remuneration, and Income

1. Public service units must ensure wage payments to employees according to the rank and position wages prescribed by the state.

2. The state encourages public service units to increase revenue, reduce expenditure, and streamline staffing to enhance employee income based on completed tasks and after fulfilling all obligations to the state budget.

Based on financial results and saved funds, units may determine the total annual income payment level up to twice the state-prescribed rank and position wage fund.

Income payments to individual employees within the unit shall be made according to the principle that those with high work efficiency and significant contributions to increased revenue and reduced expenditure will receive more. Unit heads shall make additional income payments according to internal expenditure regulations of the unit.

3. When the state adjusts wage regulations and increases the minimum wage level, the additional wage amount according to state regulations (referred to as additional wage according to state regulations) shall be guaranteed from sources as prescribed by the Government to ensure the general minimum wage level prescribed by the state.

Article 26. Utilization of Savings from Surplus Revenue Over Expenditure

1. Annually, after covering all expenses, paying taxes, and other required payments, the surplus savings from service activities' revenue exceeding expenditure (if any), units may utilize according to the following sequence:

a) Additional income payments to employees, up to the maximum level specified in Clause 2 of Article 25 of this Decree;

b) Awards for groups and individuals inside and outside the unit based on work performance and contributions to unit activities. Specific award amounts are decided by unit heads according to internal expenditure regulations of the unit;

c) Welfare and emergency hardship assistance for employees, including retirement and disability cases; additional payments for employees undergoing staff reduction. Specific expenditure amounts are decided by unit heads according to internal expenditure regulations of the unit;

d) Strengthening the material base of the unit;

đ) For units finding their savings unstable, they may establish a stable income reserve fund to ensure employee income.

2. Public service units may not pay additional income from sources specified in points c, d, đ, e, g, h, i of Clause 1 of Article 21 of this Decree and funds for tasks to be carried over to the next year.

PART 4

PROVISIONS ON THE PREPARATION AND IMPLEMENTATION OF BUDGET ESTIMATES FOR REVENUE AND EXPENDITURE

The preparation and implementation of budget estimates for revenue and expenditure for public service units shall be carried out in accordance with the State Budget Law and the provisions of this Decree.

Article 27. Preparation of the budget for public service units

1. Preparation of the budget for the first year of the stable classification period of public service units:

Based on the functions and tasks assigned by the competent authority, the planned tasks for the year, the current financial expenditure system; based on the results of public service activities, the financial revenue and expenditure situation of the immediately preceding year; the unit prepares the budget for planned revenues and expenditures for the planning year; determines the classification of public service units according to the provisions of Article 9 of this Decree; requests the state budget to ensure regular operating funds (for public service units that partially self-fund their operational costs and public service units fully funded by the state budget); prepares the budget for non-regular operating expenses according to the current regulations.

2. Preparation of the budget for the next two years during the stable classification period of public service units:

Based on the level of state budget funds allocated for regular operations to fulfill the functions and tasks assigned by the competent authority in the immediately preceding year and the increased or decreased tasks for the planning year, the unit prepares the budget for regular operating revenues and expenditures for the planning year. For non-regular operating funds, the unit prepares the budget according to the current regulations.

3. The budget for the operation of public service units shall be submitted to the superior management agency according to the current regulations.

Article 28. Preparation of the budget by the superior management agency

1. Based on the budget for revenues and expenditures of the first year of the stable classification period prepared by the unit, the superior management agency proposes the classification of subordinate public service units according to the provisions of Article 9 of this Decree and compiles the budget for revenues and the state budget ensuring regular and non-regular operating expenses (if any) for the unit to submit to the same-level finance agency and related agencies according to the current regulations.

After receiving written comments from the same-level finance agency, the Ministry in charge (for central-affiliated public service units), the local management agency (for local-affiliated public service units) decides or submits to the People's Committee for decision on the stable classification of public service units for three years and approves the budget for state funds ensuring regular operations for the first year of the stable classification period (for public service units that partially self-fund their operational costs and public service units fully funded by the state budget).

2. Annually, during the stable classification period of public service units, the management agency bases its decisions on the budget for revenues and expenditures prepared by the public service unit, reviews and compiles the state budget, and submits it to the same-level finance agency.

Article 29. Allocation and Implementation of Budgets

1. Allocation of Revenue and Expenditure Budgets:

a) The Ministry in charge (for central-affiliated public service units); the local management agency (for local-affiliated public service units) decides to allocate the revenue and expenditure budget for the first year of the stable classification period to the public service unit within the scope of the revenue and expenditure budget allocated by the competent authority, after receiving written agreement from the same-level finance agency;

b) Annually, during the stable classification period of public service units, the management agency decides to allocate the revenue and expenditure budget to the public service unit, including regular operating funds at the level of the previous year and additional funds (including funds for additional tasks) or reduced funds according to the regulations of the competent authority (for public service units that partially self-fund their operational costs and public service units fully funded by the state budget) within the scope of the revenue and expenditure budget allocated by the competent authority, after receiving written agreement from the same-level finance agency.

2. Implementation of the revenue and expenditure budget:

a) For regular operating expenses: during implementation, the unit may adjust the contents of expenditures and expenditure categories in the allocated expenditure budget to suit the actual situation of the unit, while submitting to the superior management agency and the State Treasury where the unit has an account for monitoring, management, payment, and settlement. At the end of the fiscal year, remaining regular operating funds and unused public service revenues can be carried over to the following year for continued use;

b) For non-regular operating expenses: when adjusting expenditure categories and tasks, unused or unspent funds at the end of the year, follow the provisions of the State Budget Law and current guiding documents.

Article 30. Settlement

At the end of each quarter and year, the public service unit shall prepare financial reports and settlement reports on state budget revenues and expenditures to be submitted to the superior management agency for review in accordance with current regulations.

Chapter IV

RESPONSIBILITIES OF THE HEAD OF PUBLIC SERVICE UNITS, MINISTERS

AND CHAIRMEN OF PROVINCE PEOPLE'S COMMITTEES,

DIRECTLY-GOVERNED CITIES

Article 31. Responsibilities of the head of public service units

1. The head of a public service unit shall be responsible to the direct superior management agency and shall bear legal responsibility for their decisions regarding the exercise of autonomy in tasks, organizational structure, staffing, and finance of the unit.

2. Organize the implementation of state regulations on environmental protection, social security, and national safety and confidentiality in the unit's activities. Fulfill obligations to the State and preferential policies for beneficiaries.

3. Develop plans to implement the self-management system according to this Decree and report to the superior agency.

4. Establish and organize the implementation of internal expenditure regulations in accordance with the guidelines of the Ministry of Finance.

5. Organize the implementation of personnel management in accordance with the law, ensuring wage, salary, social insurance, health insurance, and training benefits for employees of the unit as stipulated by law.

6. Organize the implementation of accounting, statistics, and asset management in compliance with the law, accurately and promptly reflecting all revenue and expenditure items of the unit in accounting books. Implement information and reporting systems for public service activities according to current regulations.

7. Implement grassroots democracy and financial transparency regulations according to current regulations.

8. Adhere to Party and State regulations concerning the activities of Party and mass organizations. Have the responsibility to coordinate and create conditions for Party and mass organizations to participate in supervising and managing all aspects of the unit's operations.

Article 32. Responsibilities of Ministers of Ministries, agencies at ministerial level, and government agencies, herein VIOLATION people's committees of provinces and centrally governed cities

1. Define functions and tasks for subordinate public service units.

2. Decide on granting autonomy and self-responsibility to subordinate public service units.

3. Approve staffing plans for public service units that partially self-fund their operational costs and those fully funded by the state budget, ensuring alignment between staffing plans and the units' functions, tasks, and financial capabilities.

4. Specify the levels of authority for autonomy and self-responsibility in tasks, organizational structure, staffing, and finance, serving as a basis for subordinate units to implement.

5. Develop and promulgate standards, cost norms, economic and technical norms, and unit prices for state-ordered products according to regulations.

6. Establish specific criteria to evaluate the completion of assigned tasks for public service units based on the following basic criteria:

a) Volume of work to be completed in a year;

b) Quality of work approved or accepted;

c) Deadline for completing work;

d) Compliance with policy, system, and financial regulations.

In addition to these basic criteria, based on the specific nature of the work, specialized ministries and sectors shall develop and issue additional criteria (including criteria for evaluating from service recipients) to ensure compliance with management requirements of the ministry, sector, and unit.

7. Direct the organization, inspection, and supervision of the implementation of the self-management mechanism for public service units as prescribed in this Decree and related laws.

8. Annually organize mid-term reviews and evaluations of the implementation of the self-management mechanism for public service units and submit them to the Ministry of Finance and the Ministry of Home Affairs.

Chapter V

IMPLEMENTING PROVISIONS

Article 33. Effective Date

1. This Decree takes effect fifteen days after its publication in the Official Gazette and replaces Government Decree No. 10/2002/NĐ-CP dated January 16, 2002, on financial regulations applicable to public service units with income.

2. Abolish certain provisions in the following documents:

a) Abolish the provision in Article 1 of Government Decree No. 33/CP dated May 23, 1995, amending Clause 1 of Article 6 of Government Decree No. 95/CP dated August 27, 1994, on collecting part of hospital fees: "30% is reserved for rewarding medical staff who show high responsibility towards patients and complete their professional tasks well; of which, the unit shall allocate 2% to 5% to be submitted to the competent authority (Ministry of Health, Department of Health, Ministry, or sector) to establish a support and reward fund for units and individuals with outstanding achievements in healthcare work and hospitals without the ability to collect hospital fees."

b) Abolish the following provision in Clause 3 of Article 4 of Decision No. 70/1998/QĐ-TTg dated March 31, 1998, of the Prime Minister on collecting and using tuition fees at public educational and training institutions under the national education system: "of which, the proportion of tuition fees allocated for enhancing material facilities for teaching and learning (Clause 2.1) shall not be less than 35% for the education sector and not less than 45% for the training sector, and the proportion of tuition fees allocated for supporting administrative work and general regulation (if any) within the local education and training sector (Clause 2.4) shall not exceed 20%."

c) Abolish the following provision in Clause 7 of Article 10 of Government Decree No. 60/2003/NĐ-CP dated June 6, 2003, detailing and guiding the implementation of the Law on State Budget: "after obtaining the opinion of the higher-level state management agency."

3. For public service units that have been granted autonomy under Government Decree No. 10/2002/NĐ-CP dated January 16, 2002, on financial regulations applicable to public service units with income, they shall transition to implementing the provisions of this Decree.

Article 34. Responsibilities for guidance

The Ministry of Finance and the Ministry of Home Affairs shall coordinate with relevant ministries and agencies to guide the implementation of this Decree.

Annually, the Ministry of Finance and the Ministry of Home Affairs shall compile information on the implementation of the self-management regime as prescribed in this Decree and report to the Prime Minister.

Article 35The Ministers, Heads of ministerial-level agencies, Heads of government agencies, and Chairpersons of provincial People's Committees under central cities shall be responsible for enforcing this Decree./.