Funding Savings of Autonomous Policy-Implementing Agencies: How Should They Be Utilized?

As stipulated in Clause 7, Article 1 of Decree 117/2013/ND-CP, at the end of the fiscal year, after completing the assigned tasks, an agency implementing autonomous policies that incurs actual expenditures lower than the allocated budget for the implementation of autonomous policies shall consider this difference as saved funds. Specific operational tasks with allocated budgets for autonomous policies that are not executed or inadequately executed shall not be considered as saved funds and must be reimbursed to the state budget. If specific tasks are permitted by authorized authorities to be carried forward to the next year (including specific activities currently in progress), the remaining funds may be transferred to the next fiscal year to continue implementing the specific tasks and will be included in the autonomous budget of the following year. For partially completed specific tasks, the expended funds shall be settled according to regulations.

Illustrative image (source: internet)

Saved funds are utilized as follows:

- Supplementing income for officials: Agencies implementing autonomous policies may apply an additional salary fund coefficient not exceeding 1.0 times the salary level, rank, and position as prescribed by the state to pay additional income to officials. Based on the total allowed expenditure amount, the autonomous agency decides on the plan to pay additional income to each official (or each subordinate unit) according to the principle linked to the effectiveness and results of each individual's (or subordinate unit's) work.- Reward expenditures: Periodic or extraordinary rewards for collectives and individuals based on work results and contributions, beyond the existing reward policies under the current Law on Emulation and Commendation.- Expenditures for collective welfare activities of officials: Including sudden hardship allowances for officials, even for those who retire or lose work capacity; additional payments for employees in the workforce when downsizing the staff.- Provision fund to stabilize officials' income: Unused saved funds at the end of the year shall be transferred to the provision fund to stabilize income.

During the year, agencies implementing autonomous policies may advance from the allocated budget to implement autonomous policies for additional income, welfare activities, and support for operational activities.

The head of the agency implementing autonomous policies decides on the usage plan for the saved funds as mentioned above in the agency’s internal expenditure regulations after reaching a written agreement with the agency’s Trade Union organization.

See more regulations in Decree 117/2013/ND-CP, effective from January 1, 2014.

Thu Ba

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