VietNamNet Bridge – State officials cannot have new cars this year under a new directive just issued by the Ministry of Finance, which states only special-use automobiles like ambulances and trucks can be bought under a public procurement program.

Currently, an amount of 34,655 vehicles worth VND18 trillion has been acquired over the years for use by officials.

Under Resolution 01/2014 issued by the Government on thrift practices, there will be no money earmarked to buy new vehicles this year, except for special-use vehicles. The same action was done in 2011 and the first months of 2012.

The new directive by the Ministry of Finance for using the State budget to procure public assets also bans acquisition of vehicles for Vietnam’s representatives abroad, vehicles for State-funded capital construction projects, and projects funded by foreign entities unless otherwise stated in agreements with foreign donors.

The Ministry of Finance move is not surprising since the budget spending estimates for 2014 are expected to increase VND28.7 trillion (2.9%) over 2013. Therefore, fiscal spending must be tightened to ensure debt payments.

Statistics from the Department of Public Property Management under the ministry, the total value of public assets as of November 28, 2013 amounted to VND940.76 trillion including land, houses and cars. Of the amount, there were 34,655 cars costing more than VND18 trillion, but their remaining value was only VND6.41 trillion after depreciation.

Of all the automobiles, 67.71% are for organizations, 909 cars for officials at various positions, and some 10,286 units being special-use vehicles.

The budget for procuring new vehicles will be included in the cost estimates for administration management.

Source: SGT