Thorough decentralization to localities when arranging the financial sector according to a 2-level model

The representative of Hai Phong City People's Committee proposed that the Ministry of Finance study and agree on the viewpoint that tasks at the district level should be transferred to the commune level, and only tasks that the commune cannot perform should be transferred to the provincial level.

Localities propose to delegate authority to localities to arrange and divest state capital in enterprises.

Overview of the conference. Photo: Organizing Committee

Minister of Finance Nguyen Van Thang expressed his opinion that there is no general formula for transferring tasks between levels. Moreover, each locality has different characteristics. However, it is possible to adhere to the principle of "thorough decentralization to the locality", "locality decides, locality acts and locality is responsible".

"If the province does better, it will stay in the province. If the commune does better, it will be transferred to the commune," said Minister Nguyen Van Thang.

Deputy Minister Nguyen Duc Tam (Ministry of Finance) further clarified that regarding decentralization, the Ministry of Finance raised three issues: is decentralization strong enough? Is there any missed work when implementing decentralization? And decentralization must be linked to implementation capacity.

Deputy Director of the Department of Organization and Personnel ( Ministry of Home Affairs ) Pham Minh Triet said that in the financial field, when considering the transfer of tasks between levels when implementing the two-level local government model, it is necessary to base on the original laws (such as the Law on Organization of Local Government).

The representative of the Ministry of Home Affairs agreed with the view of the Minister of Finance, the spirit is that the level that performs the most effectively will be assigned, the important thing is "not to miss any tasks".

Regarding divestment of state-owned enterprises, the Ministry of Finance's viewpoint is that whether to divest or not to divest depends on the actual situation. The Ministry of Finance will study and advise in the direction that there are sectors and enterprises that must continue to divest, but there are also sectors and enterprises that operate effectively and have high profitability, so the state will study and even adjust to increase capital in these enterprises.

An issue of concern to many localities is the plan to handle and manage public assets after implementing the two-level local government model to ensure efficiency and avoid waste.

The representative of the Da Nang People's Committee proposed that the Government, ministries and branches consult on amending and supplementing the Law on Management and Use of Public Assets, and at the same time consider and adjust the state treasury model in sync with the locality after the merger to create favorable conditions in the process of financial and budget management between financial, tax, customs, treasury and local government agencies.

Minister of Finance Nguyen Van Thang said that the Ministry of Finance has consulted and reported to the Government to prioritize arrangements for a number of sectors and fields (healthcare, education, construction, public works, etc.).

The remaining assets after the arrangement will allow localities to call for investment and implement projects in accordance with the planning and orientation of local economic and social development.

In the coming time, the Ministry of Finance will continue to research and provide guidance if problems arise from localities...

When merging provinces, the treasury, tax and customs systems are all adjusted to suit the administrative boundaries of the localities.

Source: https://hanoimoi.vn/phan-cap-triet-de-cho-dia-phuong-khi-s-ap-xep-linh-vuc-tai-chinh-theo-mo-hinh-2-cap-703620.html