After five years of operation, the Council of Road Maintenance Funds with a capital of VND10,000 billion / year is being proposed by the Ministry of Transport (MOT) to the Prime Minister for decision on dissolution.
The rationale for this is that the RMB Council’s operating model is no longer applicable to the application of the Law on Fees and Charges, the State Budget Law from 2017.
The Minister or Vice Minister will chair the SCF
According to the Ministry of Transport, from the date of establishment to now, pursuant to Decision No. 1486 / QD-TTg dated 5 December 2012 of the Prime Minister, Identify issues in the organization of the Fund.
Specifically, the Council will propose adjustments to the regulations relating to the Fund’s revenue; to amend and supplement regulations related to the fund’s operation and submit it to competent authorities for approval; To approve the Fund’s annual financial plans (revenues and expenditures); To decide on the allocation of annual road tolls for automobiles for local road maintenance funds.
According to Decision No. 1486, the Chairman of the Fund Management Council is the Minister of Transport; 4 vice presidents are deputy ministers of Finance, Planning and Investment, Transportation and General Director of Vietnam Road Administration. The permanent member of the Board is the Chief of the Fund’s Office.
In addition, there are seven other councilors including: Finance Department Director, Transport Infrastructure Department (Ministry of Transport); Deputy General Director of Vietnam Road Administration; leaders of the Vietnam Register. Department of Public Administration, Department of Budget (Ministry of Finance) and representatives of Vietnam Automobile Transportation Association.
However, according to the Ministry of Transport, since 2017, when implementing the law on fees and charges, the State Budget Law, the total revenue of the SCF from the road use fee (a) to be remitted entirely to the State budget. All funds spent on SCF are allocated by the state budget. The distribution of 35% of the fee collected by the Ministry of Finance to the Prime Minister for decision to allocate to the local.
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“Under the new operating mechanism, the Ministry of Transport recognizes that the role of the Central Road Maintenance Fund Management Council is limited, not as effective as before,” Minister Nguyen Van The said.
In replacement of the Fund Management Council, the Ministry of Transport requests the Prime Minister to assign the management and use of the Central Reserve Fund to the Ministry which directly manages the Minister of Transport to act as Chairman of the Fund. Deputy Chairman of the fund, dissolve the Fund Office.
“The Ministry of Transport’s advisory bodies to assist with the operation of the Fund. The management of revenues and expenditures of the Fund shall comply with the current provisions of the State Budget Law and other relevant legal documents, “Minister Nguyen Van The proposed.
Early adjustment of legal regulations for maintenance work smoothly
According to the Ministry of Transport, if the Prime Minister approves and issues the decision to dissolve the Central Road Maintenance Fund Management Council, the Ministry of Transport said that it would have to simultaneously adjust a series of legal documents. Law related to management and use of the Fund.
Specifically, the Decision No. 1486 / QD-TTg was abolished; amending the Government’s Decree No. 18/2012 / ND-CP dated March 13, 2012 on the Road Maintenance Fund; Amending Circular No. 60/2017 / TT-BTC dated June 15, 2017 guiding the management, use and settlement of funds for road maintenance and management.
In the short term, in order to ensure continuity of management of the Central Committee for road maintenance and management tasks smoothly and without delay during the study period, the competent authorities Issue the above-said legal documents and take effect, the Ministry of Transport requests the Prime Minister to temporarily allow the transfer of all tasks of the Fund Managing Board to the Ministry of Communications, Assignment of advisory bodies to carry out corresponding advisory work according to specific functions and tasks.
Overlapping in SCF management
According to the Ministry of Finance, the chairman of the Central Board of Management is still using human resources of organizations under the Ministry of Transport to replace the work of the Central Office of the Central Committee such as cost estimation, Inspection and settlement of funding for road maintenance.
This resulted in the emergence of an intermediary organization nominally outside the Ministry of Transport, the Central Office of the Central Committee.
In fact, this organization is still using the staff and apparatus of the Ministry of Transport to carry out the assigned tasks; leading to overlapping, unclear functions, tasks, responsibilities and authority between the Ministry of Transport, the units under the Ministry of Transport and the Office of the Central Committee of the Central Committee in approving the plan, allocation budget estimates State budget allocations and settlement, together with the responsibility to manage and use the allocated state budget.
In addition, the Central Office of the Central CommittAee has not enough personnel and capacity to independently manage all annual road maintenance costs (approximately VND 10,000 billion) to allocate, allocate and manage the budget with 63 provinces, cities and 59 agencies and units directly under the Ministry of Communications and Transport and the Department of Transport authorized to manage the highway.
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