Merging provinces and communes saves the budget more than 190,000 billion VND in 5 years

According to reports presented at the recent Government meeting on the arrangement and reorganization of administrative units at all levels and the construction of a new 2-level local government organization model, after the rearrangement of administrative units, the number of provincial-level cadres, civil servants and public employees is expected to be about 91,784 people, a decrease of 18,449 people.

Expected payment of benefits and policies for those who quit their jobs at the provincial level is about 22,000 billion VND (Illustration photo)

At the commune level, the number of cadres and civil servants will be about 199,000, a decrease of about 110,000. At the same time, more than 120,000 part-time workers at the commune level nationwide will end their duties. In total, the number of staff reduced after the merger is more than 128,000.

According to calculations by the Ministry of Home Affairs, the estimated cost of saving on salaries and administrative expenditure norms in the period from 2026 to 2030 nationwide is about 190,500 billion VND.

It is expected that the payment of benefits and policies for those who retire at the provincial level will be about VND22,000 billion; at the commune level, about VND99,000 billion; and the social insurance premium for those who retire early without having their pension deducted will be about VND6,600 billion.

After the reorganization, the country is expected to have 34 provincial-level administrative units including 6 centrally-run cities (Hanoi, Hai Phong, Hue, Da Nang, Can Tho and Ho Chi Minh City) and 28 provinces (including: Lai Chau, Dien Bien, Son La, Lang Son, Cao Bang, Tuyen Quang, Lao Cai, Thai Nguyen, Phu Tho, Bac Ninh, Hung Yen, Ninh Binh, Quang Ninh, Thanh Hoa, Nghe An, Ha Tinh, Quang Tri, Quang Ngai, Gia Lai, Khanh Hoa, Lam Dong, Dak Lak, Dong Nai, Tay Ninh, Vinh Long, Dong Thap, Ca Mau, An Giang).

The whole country is expected to have 3,321 commune-level administrative units; correspondingly, a reduction of 29 provincial-level administrative units and 6,714 commune-level administrative units.

Regarding the regime and policies for cadres, civil servants, public employees and workers when restructuring the apparatus, the Government has issued Decree 178, amended and supplemented in Decree 67 with detailed regulations. The Ministry of Home Affairs and the Ministry of Finance have also issued circulars guiding localities in implementing the payment of regimes for those who retire early or quit their jobs when restructuring the apparatus.

Prime Minister Pham Minh Chinh also assigned the Ministry of Finance to urgently arrange sufficient funds to pay for those who have requested leave under the regime and are redundant in the process of restructuring the apparatus of the political system and local administrative units.

At the same time, there are instructions on advance funding from ministries, branches and localities to pay as soon as possible, to avoid congestion; as well as instructions on arranging assets and facilities during the process of arranging administrative units.

Source: NLDO

Source: https://baotayninh.vn/sap-nhap-tinh-xa-ngan-sach-tiet-kiem-hon-190-000-ti-dong-trong-5-nam-a189910.html