The Ministry of Finance requires clear and timely budget handover when reorganizing the apparatus

Ensure final budget settlement before arrangement

The Ministry of Finance has just sent a document to the People's Committees of localities to guide the principles of handling finance and state budgets (NSNN) when reorganizing administrative units at all levels and building a model of organizing local government at 2 levels. In particular, an important requirement is to complete the 2024 budget settlement before restructuring the apparatus.

Localities direct their affiliated units to hand over and receive the financial and state-owned state budget. Each agency and unit (including public service units, state-owned enterprises, etc.) must inventory financial sources, prepare complete records, thoroughly handle conclusions and recommendations of inspection and auditing agencies that have not been implemented, and be fully responsible for records and documents related to the time when the competent authority decides to reorganize.

When handing over financial resources, state budget assets, agencies and units must make a handover record, including receivables to be collected, payable (if any) and inspection and auditing conclusions that have not been implemented. The Ministry of Finance requires absolutely no financial or budget losses.

Regarding the settlement of state budget assets in 2024, the Ministry of Finance requires completion within the deadline: Commune level before April 30, 2025, district level before May 31, 2025, provincial level before June 30, 2025. All state budget revenue and expenditure settlements in the area and local budget expenditure settlements in 2024 must be approved by the Provincial People's Council and sent to the Ministry of Finance (and sent to the State Audit) before July 15, 2025 for synthesis and submission to competent authorities.

Maintaining stable 2025 budget estimates after the reorganization

The Ministry of Finance also noted that the 2025 state budget revenue and expenditure estimates of provinces and cities after the reorganization must ensure accuracy with the total amount and areas of revenue and expenditure assigned by competent authorities before the reorganization. At the same time, provide specific instructions on the steps for handing over and receiving estimates between administrative units.

Accordingly, before reorganizing the apparatus, the People's Committee at the provincial level must review all revenue and expenditure estimates of its budget, including the assigned part and the part expected to be implemented at the time of reorganization. The data is compiled from the commune level, district level to the provincial level.

After the arrangement, the Department of Finance advised the Provincial People's Committee to submit to the People's Council of the same level for decision on the state budget estimate for 2025. In particular, the division of revenue between the provincial and commune budgets after the reorganization needs to remain stable, ensuring revenue for communes as before. The expenditure tasks of the district level before the arrangement will be transferred to the provincial level for implementation. If the commune after the arrangement is capable of performing some tasks of the district before, the Provincial People's Council will base on the reality to decide.

Previously issued local regimes and policies continue to be maintained in terms of subjects, spending levels and areas. The new administrative units after the arrangement will allocate, manage and settle the budget in accordance with regulations.

For public service agencies, units, state-owned enterprises managed by localities, local authorities are responsible for synthesizing all financial resources, including debts to be collected and paid (if any), to hand over to the new unit after the arrangement.

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