Conditions for establishing public service units in the financial sector in Vietnam

Conditions for establishing public service units in the financial sector in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions for establishing public service units in the financial sector

- The establishment of public service units in the financial sector must meet the conditions prescribed in Clause 2, Article 4, and Points a, c, d, dd, Clause 1, Article 5, Decree 120/2020/ND-CP, Circular 04/2022/TT-BTC dated January 28, 2022 of the Ministry of Finance guiding the functions, tasks, and powers of local financial agencies under the Provincial People's Committee and District People's Committee.

- In addition to the above general conditions, the establishment of public service units in the financial sector must also meet other conditions according to relevant laws (if any).

- Public service units in the financial sector established before the effective date of this Circular must meet the conditions specified in Points a, c, d, dd, Clause 1, Article 5 of Decree 120/2020/ND-CP, Circular 04/2022/TT-BTC dated January 28, 2022 of the Ministry of Finance guiding the functions, tasks, and powers of local financial agencies under the Provincial People's Committee and District People's Committee and ensure that 30% or more of regular expenses or 30% or more of the number of employees are paid from non-business revenue (except in cases where the unit only provides basic, essential public services).

(Article 5 of Circular 72/2023/TT-BTC)

2. Criteria for classifying public service units in the financial sector in Vietnam

- Classification according to establishment authority:

+ Public service units are established under the authority of the Government.

+ Public service units are established under the authority of the Prime Minister.

+ Public service units are established under the authority of the Minister of Finance.

+ Public service units are established under the authority of the People's Committees of provinces and centrally run cities.

- Classification according to level of autonomy:

+ Public service units cover their own recurrent and investment expenditures;

+ Public service units cover their own regular expenses;

+ Public service units self-guarantee part of their regular expenses;

+ Public service units whose regular expenses are guaranteed by the state budget.

(Article 4 Circular 72/2023/TT-BTC)

Circular 72/2023/TT-BTC takes effect on February 1, 2023.

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