Conclusion 126-KL/TW: Vietnam researchs on eliminating district-level bodies, merging certain province-level bodies for downsizing? What are guidelines on financial resources for downsizing of Ministry of Finance of Vietnam?

Conclusion 126-KL/TW: Vietnam researchs on eliminating district-level bodies, merging certain province-level bodies for downsizing

On February 14, 2025, the Central Executive Committee issued Conclusion 126-KL/TW in 2025... Download regarding certain contents, tasks to continue reorganizing and downsizing the organizational structure of the political system in 2025.

See details Conclusion 126-KL/TW in 2025... Download

Within Conclusion No. 126-KL/TW, it mentions researching the abolition of the intermediate administrative level (district level) and merging certain provincial administrative units.

To be specific, The Politburo, the Secretariat assign the Communist Party Committee and the Government of Vietnam to focus on well-performing and ensuring the timely completion of certain contents and tasks as follows:

- Direct the Communist Party Committee of the Government Inspectorate and related agencies, units to promptly complete the Scheme on restructuring the inspection system, reporting to the Politburo at the meeting on February 18, 2025.

- Lead and direct the review, assessment, and restructuring of activities of party organizations in state-owned corporations, companies, and commercial banks by transferring grassroots party committees (enterprises) under the party committees of corporations, companies to local party committees following their business locations (report to the Secretariat by the end of the second quarter of 2025).

- Preside, cooperate with the Central Organizing Committee, Communist Party Committee of the National Assembly, relevant party committees, and organizations researching the orientation to continue reorganizing by abolishing the intermediate administrative level (district level); develop plans to continue reorganizing the commune level in line with the new organizational model, propose the organization of apparatus, functions, tasks, powers, and responsibilities of the commune level; orient the merger of certain provincial administrative units; propose policies to amend and supplement related legislative provisions, Communist Party regulations, report to the Politburo in quarter 3/2025.

Conclusion 126-KL/TW: Vietnam researchs on eliminating district-level bodies, merging certain province-level bodies for downsizing (Image from the Internet)

What are guidelines on financial resources for downsizing the organizational structure of Ministry of Finance of Vietnam?

The Ministry of Finance of Vietnam issued Circular 07/2025/TT-BTC guiding the determination of financial resources, budget estimation, management, utilization, and settlement of funds for implementing policies for officials and public employees during the organizational restructuring process according to Decree 178/2024/ND-CP.

To be specific, according to Circular 07/2025/TT-BTC, the Ministry of Finance of Vietnam guides the financial resources for downsizing the organizational structure as follows:

(1) Use of the regular expenditure budget estimates (Clause 1, Article 2 Circular 07/2025/TT-BTC):**

- Pay financial costs to retain the former position's salary or leadership allowance until the end of the term or appointment period for officials who cease to hold their positions or are appointed to a lower position due to organizational restructuring.

- Continue to pay the current salary (including allowances) for officials who are temporarily assigned to grassroots work.

- Implement policies for raises in salary grades and bonus payments for relevant subjects.

- Pay bonuses for subjects according to regulations.

(2) State budget (Clause 2, Article 2 Circular 07/2025/TT-BTC):**

- For officials and public employees, laborers, and armed forces under the management of ministries, ministry-level agencies, agencies under the Government of Vietnam, and other central agencies, the budget will be secured by the central budget.

- For officials and public employees and laborers under units managed by local authorities, the budget will be aggregated into the local salary reform needs.

(3) Budget estimation, allocation, use, and settlement of funds (Article 5 Circular 07/2025/TT-BTC):

- The estimation, management, utilization, and settlement of the state budget funds for policies for officials and public employees, laborers, and armed forces in implementing the organizational restructuring is carried out following the regulations of the Law on State Budget; the Accounting Law, and guidance documents. Specifically:

- For ministries, central agencies: Develop the budget estimates for implementing policies and consolidate them into the annual state budget estimate and send them to the Ministry of Finance of Vietnam for submission to the competent authority for approval.

- For localities:

+ Agencies and units develop budget estimates and send them to the same-level financial agencies to aggregate into the salary reform needs in the local state budget estimate.

+ If the local salary reform resources are insufficient, the central budget will support the shortfall.

Note: The settlement of funds for policies for officials and public employees, laborers, and armed forces in implementing the organizational restructuring is consolidated into the financial report and annual settlement report of the agency or unit following the provisions of the Law on State Budget, the Accounting Law, and guidance documents.

Is the tax authority allowed to organize the collection of the state budget in Vietnam?

According to the provisions in Clause 1, Article 55 Law on State Budget 2015 as follows:

Organizing the collection of the state budget

1. The budget collection agencies are financial agencies, tax agencies, customs agencies, and other agencies authorized or empowered by the competent state authority to organize the collection of the state budget.

2. Only budget collection agencies are allowed to organize the collection of the state budget.

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Thus, under the above regulation, the tax authority is allowed to organize the collection of the state budget.