$5B needed for political system streamlining, ministry says

By Viet Tuan   December 30, 2024 | 04:43 am PT
$5B needed for political system streamlining, ministry says
A government employee at the Da Nang administrative center, May 2024. Photo by VnExpress/Nguyen Dong
The Ministry of Home Affairs has estimated that approximately VND130 trillion ($5.1 billion) is required to implement a political system streamlining process.

This funding, intended for government officials and workers, will cover lump-sum payments for those retiring early, unemployment and layoff benefits, financial support for job seekers, and salaries and bonuses.

The proposal suggests sourcing these funds from the national budget and the revenues of public non-business entities.

The ministry emphasized that the streamlining effort aims to reduce spending and alleviate the strain on the national budget. Over the next five years, it is expected to save VND113 trillion, the proposal noted.

The restructuring involves merging units with overlapping functions, eliminating unnecessary intermediary organizations and streamlining administrative roles. Approximately 100,000 officials and workers will be affected by the changes.

Following the overhaul, the central government will operate with nine fewer units, including five ministries and four institutions. The ministry has set a target to finalize the restructuring plans before the first quarter of 2025.

The initiative comes as Vietnam's administrative system grapples with significant financial and management challenges. Currently, over 2.5 million officials and government workers are employed, while an additional 3.5 million people rely on pensions and benefits. Regular expenses consume 70% of the national budget, leaving only 30% for investment and development.

 
 
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