I have a question that I hope to be answered by the advisory board: I am working at a public non-business unit in Hanoi city. I heard that public non-business units are authorized by the Government to implement the financial autonomy mechanism. So let me ask about the financial autonomy plan for public non-business units like? Thank you!
Article table of contents
Developing the plan for financial autonomy for public non-business units?
Pursuant to Clauses 1 and 2 Article 35 of Decree No. 60/2021/ND-CP on assignment of financial autonomy to public service providers as follows:
- Public administrative units shall formulate the plan for financial autonomy during the period of stable 5 (five) years in accordance with the stage of socio-economic development stipulated by the Government; the estimate of revenues and expenditures for the first year of the stable period and the proposal for classification of levels of financial autonomy of these units in accordance with the functions and tasks assigned by competent authorities (according to the form stipulated in Appendix II issued together with this Decree), and report to superior regulatory agencies (Ministries and central agencies for centrally-managed units; People's Committees of provinces and districts for locally-managed units). The financial autonomy plan must specify the degree of financial autonomy according to 04 groups of entities prescribed in this Decree.
- For public non-business units with attached non-business units
+ Public administrative units shall establish the plan for financial autonomy for submission to the superior public administrative unit for their approval after receipt of consent from the superior regulatory agency.
+ Superior public non-business units shall formulate their financial autonomy plans (excluding plans on financial autonomy of their attached public non-business units defined at Point a of this Clause) and send them to their superior managing agencies.
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Public non-business units in Vietnam authorized by the Government to exercise financial autonomy
Verification of budget estimates by superior authorities?
Pursuant to Clause 3 Article 35 of the Decree No. 60/2021/ND-CP prescribing the inspection of budget estimates by superior regulatory agencies as follows:
- Based on the plan for financial autonomy proposed by public administrative units (exclusive of the plan for autonomy of public administrative units specified in Point a Clause 2 of this Article), the superior regulatory agency shall consider and evaluate the estimate of recurrent revenues and expenditures for the first year of the stabilization period and determine the recurrent expenditures derived from the state budget, retained revenues and expenditures; the state budget expenditures used for placement of orders for public administrative services (if the time of evaluation of the plan for financial autonomy allots decides to define the budget for these units); shall classify affiliates according to the level of financial autonomy, consolidate the plan for classification of revenues and expenditures of public administrative units and send a written request to the Ministry of Finance (the Ministry of Finance, the local financial body) for consideration and comments.
- After receipt of written opinions from the finance authority at the same level, the superior regulatory agency shall define the classification of these public administrative units and make a decision on assignment of the right to exercise financial autonomy to its subsidiary public administrative units; approve the estimate of recurrent expenditures financed by the state budget allocations, retained fee revenues; the state budget expenditures used for placement of orders for provision of public administrative services (if any) to these public administrative units according to the plan for financial autonomy at the beginning of the reporting year;
This is the provision that public non-business units are authorized by the Government to exercise the financial autonomy mechanism.
Khanh Linh
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