VietNamNet Bridge – Currently regular expenditures account for nearly 70% of state expenditures, ie if we earn VND10, we spend VND7 and have only VND2 for investment and development activities and VND1 for paying debt.


{keywords}



The local media recently reported an odd case in the central province of Ha Tinh, where some female teachers were “selected” by the local government to receive guests at restaurants and karaoke bars. This story has ignited a controversial topic that has been deliberately hidden in society until now: the culture of guest receptions at state agencies.

Those who have worked with government agencies, especially who have had business trips to localities, are perhaps accustomed to the meals offered by the host.

This is the way to show hospitality, to express emotions with the guests after a long journey and it is normal, but it is not unusual that normal meals become fussy and expensive banquets.

During the banquets held by Ha Tinh province, not only the dignity of the female teachers who were “mobilized” to parties to welcome guests was impugned but also the state budget was spent on unnecessary things. Such spending is often called "public funds for guest receptions", which are added to regular expenditures.

The spending for “guest receptions” is usually not high each time but the total spending for all “receptions” of state agencies is huge. Such “small” expenditures have contributed to the state’s overspending.

According to published data, regular expenditures accounted for nearly 70% of state spending, ie if we have VND10, we spend VND7, have only VND2 for investment-development activities and VND1 for paying debts.

What kind of “guest reception"?

According to the Government, spending for investment has plummeted continuously in recent years. By October 15, 2016, state revenue was estimated at VND736.4 trillion but budget spending reached VND924.8 trillion, of which spending for investment and development accounted for more than 16% only; for paying debts and aids of more than 13%; and the rest for regular expenditures, including “small expenditures” like guest reception.

The government said that one of the reasons for the budget deficit is overspending of local governments. Currently, up to 50 out of 63 provinces and cities are overspending and need capital funding from the central government. 

The story about “guest reception” reveals large gaps.

The Government, the National Assembly and senior officials have always asked local governments to practice thrift and combat waste.

But the story of public spending which is extremely complex will not be successful without close supervision and “steel” discipline.

The Secretary of the Discipline and Inspection Commission of the Chinese Communist Party said: Credibility cannot be replaced by supervision. Even the Chinese government set very strict rules on gifts, donation, and guest receptions of state officials upon the formation of the new government (2013), creating a legal framework to manage budget spending more efficiently.

In our country, the most recent normative documents used to adjust public funds for guest receptions is Circular No. 01/2010/TT-BTC, which was issued six years ago. However in this document, there are no specific regulations to restrict spending for guest receptions.

The story about “mobilizing” female teachers to welcome guests at parties has shown holes in budget discipline.

Changing habits is not easy. But if we are really determined to build a state as committed by the Prime Minister and the political apparatus, we should probably start by changing bad habits.

Let's simplify guest reception by spending your own money.

Nguyen Khac Giang