Wednesday, September 23, 2020, 04:05 (GMT+7)

Wednesday, July 15, 2020, 08:50 (GMT+7)
Reform of the military financial management mechanism - results and problems

Reform of the military financial management mechanism pursuant to the State Budget Law, an indispensable, urgent requirement and an important content in the direction of the Central Military Commission and the Ministry of Defence, has initially achieved positive results. However, there remain several difficulties, shortcomings, and problems to be solved.

With the spirit of initiative and high sense of responsibility, right after the Central Military Commission’s Resolution No.915-NQ/QUTW issued on August 25th, 2018 on “Reforming the military financial management mechanism in the period of 2018 - 2025 and beyond” and the Minister of Defence’s Decision No.3500/QĐ-BQP issued on August 26th, 2018 on approving the Project entitled “Reforming the military financial management mechanism pursuant to the State Budget Law in the period of 2018-2025 and beyond” (hereinafter referred to as the Project), branches, agencies, and units throughout the Army have promptly organized the dissemination, communication, and implementation with multiple synchronous solutions. The Party committees and commanders at all levels issued leadership resolutions and plans and directives to concretize Resolution No.915 and the Project as the basis for assigning tasks and guiding the units’ implementation. As a new content, in the first phase of its implementation, there were unavoidable difficulties and obstacles. Foreseeing that, the Military Financial Branch has promoted its core role in advising, coordinating, and organizing the implementation and organized professional training, retraining, and guidance for stakeholders. Therefore, the whole Army made the budget estimation, execution, and settlement under the new mechanism right in the 2019 budget year as prescribed.

After nearly 2 years of implementation of Resolution No.915 and the Project, under the close leadership and direction of the Party committees and commanders at all levels and the serious and synchronous participation of branches, agencies, and units, we have achieved initial positive results. The results achieved in the reform of the military financial management mechanism are initial but very encouraging to confirm the proper policy of the Central Military Commission and Ministry of Defence on this issue. However, as it is a new content with high requirements, the implementation still has several issues to be addressed. To well implement the reform of military financial management mechanism pursuant to the State Budget Law and improve the quality and efficiency of financial work to meet the requirements of military and defence tasks, it is necessary to synchronously implement multiple solutions, especially the following main contents.

First of all, to continue to strengthen the leadership and direction of the Party committees and commanders and promote the core role of financial agencies at all levels in advising, coordinating, guiding, and organizing the implementation. This is a decisive factor in the success of the reform of the military financial management mechanism, especially in the first stage of implementation. Therefore, the Party committees and commanders at all levels should strictly observe Conclusion No.205-KL/QUTW issued on March 8th, 2018 by the Central Military Commission, strengthen the leadership and direction over the financial work, and uphold the roles and responsibilities in operating, managing, and using budgets under decentralization. Agencies and units should continue to disseminate and communicate the policies of the Central Military Commission and the Ministry of Defence on implementing the new financial management mechanism, particularly Resolution No.915 and the Project to all cadres and soldiers, especially the Party committee, commanders, cadres, and staff of financial agencies at all levels to make the stakeholders clearly see the meaning, goals, requirements, and contents of the reform of the financial management mechanism in the Army and create consensus, determination, and high sense of responsibility in leading, directing, and organizing the implementation. To resolutely overcome the fear of reform and the point of view that the new mechanism will “focus power” on the Finance Branch, etc. The financial agencies at all levels should advise the Party committees and commanders to review and supplement the guidelines and measures to implement thematic resolutions and the plan to implement Resolution No.915 and the Project. At the same time, to continue to promote professional training, retraining, and guidance for cadres and staff of all branches and units to unify the implementation. As the agency in charge of budget estimating, the Financial Branch should actively guide, direct, and advise the estimating and allocating budgets to professional branches and units and coordinate, advise, and do well the allocation, inspection, review, and evaluation of estimates of branches, especially expenditure estimates.

Over the past time, we have been active in doing, researching, reviewing, developing and issuing several legal documents and guidelines over the implementation of the Project. Currently, the main difficulties and obstacles are problems in the process of estimating and allocating budgets as grounds and factors for establishment and evaluation of budget estimates which are incomplete, unclear or outdated. Therefore, the functional agencies of the Ministry of Defence, first of all the Financial Department, should actively coordinate, closely follow the practical situation, and continue to review, research, adjust, supplement, develop, and synchronously complete the documents, regulations, and criteria, especially economic and technical norms and perfect the coordination mechanism between financial agencies and professional branches at all levels in budget estimation and allocation, etc., to match the State laws, regulations of the Ministry of Defence, and military and defence characteristics to create a unified legal basis for the implementation.

Under the roadmap for implementing the Project, the norms used as the basis for budget estimation and allocation must be completed and submitted to the Ministry for approval before the second quarter of 2023. From the 2024 financial year, the budget estimation and allocation will be based on a standardized norms issued by the Ministry. This is a very heavy task due to the large number of standards and norms vested in different fields and complicated establishment, supplementation, and inspection processes. To accomplish this goal, the participation of all levels, branches, and units is required. In the immediate future, the Financial Department should continue to study and propose the Ministry of Defence to supplement and amend some decrees and guidelines for the implementation of the 2015 State Budget Law, revise the Charter of Financial Work, and adjust the functions and tasks of the professional branches in budget estimation and allocation to suit the Project. It should also coordinate with the branches in developing norms for budget estimation and allocation for regular spending, propose and promulgate general norms used as a basis for budget estimation and allocation, and perfect the method of estimation, allocation, and inspection of numbers for a number of budgets with specific spending contents, etc. Meanwhile, general departments and directing professional branches within the Army should closely follow their functions and scope of management to direct the research and establishment of technical and economic standards, limits, and norms and budget estimation and allocation norms, standardize the contents of professional expenditures by each field and level, and review and propose the list of concentrated procurement assets by the method of framework agreement signing, etc., to make it relevant to the specific tasks of the units. To improve the quality of budget estimation and allocation, every year, the branches should promptly guide the tasks, especially forecasting unexpected ones and increase and notify the expenditure budgets under the target programs, etc., so that the units could take the initiative in determining the needs, develop plans for allocation before submitting to the Ministry for approval, and deploy the plans for procurement, production, bidding, and approval of the investment policies and projects, etc.

Along with that, the functional agencies should continue to coordinate in completing the mechanism and policies on financial autonomy in public non-business units and perfecting processes and regulations on financial disclosure, inspection, examination, auditing, etc., to create a basis and legal tools to strictly manage and improve the efficiency of the use of financial resources to well implement the roadmap and objectives of the Project entitled “Reform of the military financial management mechanism pursuant to the State Budget Law in the period of 2018-2025 and beyond” as defined by the Central Military Commission and the Ministry of Defence.

Senior Colonel, PhD. PHAM BINH NGO

Your Comment (0)

Artillery Corps in the Dien Bien Phu Campaign - lessons for today
After 56 days of fighting, the VPA’s fledgling Artillery Corps accomplished successfully its mission to suppress and destroy the enemy’s artillery sites, controlled the airfields, destroy its headquarters and installations, disrupt logistic lines of communication, and effectively support the infantry to surround and destroy every fortification and the whole fortified complex of Dien Bien Phu, making important contribution to a world-shaking victory
Weather

City