From July 1, 2024, apply a unified salary regime, eliminate special mechanisms

National Assembly Chairman Vuong Dinh Hue signed and issued Resolution No. 104/2023/QH15 on the State budget estimate for 2024.

The resolution clearly states that the state budget revenue is 1,700,988 billion VND. The remaining revenue transferred from local budget salary reform sources by the end of 2023 to the 2024 budget arrangement of some localities is 19,040 billion VND to implement the basic salary level of 1.8 million VND/month.

Total state budget expenditure is 2,119,428 billion VND. The state budget deficit is 399,400 billion VND, equivalent to 3.6% of gross domestic product (GDP), including: Central budget deficit is 372,900 billion VND, equivalent to 3.4% of GDP; Local budget deficit is 26,500 billion VND, equivalent to 0.2% of GDP.

Total state budget loans are 690,553 billion VND.

The National Assembly allows the use of 145.9 billion VND of the recovered funds temporarily granted in 2022 for a number of localities to implement the policy of supporting housing rent for workers with the remaining funds, transferring the source to supplement the localities that lack resources to implement the policy and finalize the 2023 budget year.

The National Assembly allows the transfer of the entire source of VND 13,796 billion from increased revenue, reduction and savings of the central budget in 2021 to arrange annual public investment estimates and plans in 2023, 2024 and 2025 for the Ministry of Transport and 8 localities to implement 3 important national projects according to Resolution No. 58/2022/QH15, Resolution No. 59/2022/QH15 and Resolution No. 60/2022/QH15; allows the transfer of the state budget estimate to implement 3 national target programs in 2023 (including development investment capital, regular expenses of the central budget and local budget) to 2024 for continued implementation.

Regarding the implementation of wage policy, the Resolution clearly states: From July 1, 2024, comprehensive reform of wage policy will be implemented according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7th Conference of the 12th Central Executive Committee (Funding sources for wage reform are guaranteed from the accumulated wage reform source of the central budget, local budgets and a part arranged in the state budget balance expenditure estimate); adjusting pensions, social insurance benefits, monthly allowances, preferential allowances for meritorious people and a number of social security policies currently linked to the basic salary.

For central state administrative agencies and units implementing a special financial and income management mechanism: From January 1, 2024 to June 30, 2024: The monthly salary and additional income calculated based on the basic salary of VND 1.8 million/month according to the special mechanism shall not exceed the salary and additional income received in December 2023 (excluding the salary and additional income due to the adjustment of the salary coefficient of the salary scale and grade when upgrading the grade and grade in 2024). In case of calculation according to the above principle, if the salary and additional income in 2024 according to the special mechanism is lower than the salary level according to general regulations, only the salary regime according to general regulations shall be applied to ensure the rights of employees.

From July 1, 2024: Abolish all financial management and special income mechanisms of state administrative agencies and units; apply a unified salary, allowance and income regime. Do not continue to apply the current special mechanism to the regular budget according to the special financial management mechanism (operating expenses, capacity building, modernization, ensuring professional activities, etc.) of state administrative agencies and units. Assign the Government to organize implementation and report to the National Assembly at the 8th Session.

The National Assembly assigned the Government to focus on proactively, reasonably, flexibly and effectively operating fiscal policy; closely and synchronously coordinating with monetary policy and other policies; promptly responding to complex fluctuations in the domestic and foreign situation, maintaining macroeconomic stability, controlling inflation, promoting growth, and ensuring major balances of the economy.

The Government will soon submit to the National Assembly projects to amend and supplement tax laws to strengthen revenue management, restructure revenue sources to ensure sustainability; improve the efficiency of revenue management, expand the revenue base; resolutely and effectively implement solutions to combat revenue loss, transfer pricing, tax evasion; and trade fraud, especially in digital-based commercial activities.

The Government tightens discipline, strengthens the responsibility of leaders in managing and using finance and budget; manages state budget expenditures according to estimates, ensuring strictness, economy and efficiency; thoroughly saves regular expenditures and expenditures that are not really necessary to ensure resources for preventing and fighting natural disasters and epidemics, supplementing development investment capital and supporting economic recovery.

The National Assembly assigned the Government to continue directing ministries, central and local agencies to streamline staff, organize a streamlined administrative apparatus, and operate effectively and efficiently; innovate management and financial mechanisms, reorganize the system of public service units, and reduce direct support from the state budget for public service units.

The Government thoroughly directs the practice of thrift and the fight against waste; strengthens inspection, examination, and handling of responsibilities of organizations and individuals in complying with regulations on practicing thrift and fighting waste, ensuring effective use of the state budget.

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