Over 486 million USD from State budget used on state-owned cars

Some 34,214 State-owned cars cost the State budget more than 486 million USD per year, according to Tran Duc Thang, Director of the Department of Public Asset Management under the Ministry of Finance (MoF).
Over 486 million USD from State budget used on state-owned cars ảnh 1A State-owned car - Illustrative photo (Photo: VNA)
Hanoi (VNA) – Some 34,214State-owned cars cost the State budget more than 486 million USD per year,according to Tran Duc Thang, Director of the Department of Public AssetManagement under the Ministry of Finance (MoF).

At a news conference on revisingpolicies on State-owned cars held in Hanoi on March 8, Thang said the cost ofrunning a car, including hiring chauffeurs, maintenance and repair, is about320 million VND (14,400 USD) per year.

In 2016 the MoF sold 1,105 redundantcars for an average price of 46.2 million VND (2,070 USD) per vehicle.

Assessing the implementation of Decision32/2015/QD-TTg on State-owned cars, Thang said the existing State-owned car managementpolicy had positive points like determining the number of cars allowed by eachagency, organisation and unit, and the number of redundant cars to adjust theuse of State-owned cars.

The policy also helps reduce thenumber of jointly-used vehicles, sell redundant cars or transfer them to agenciesin need.

However, the decision implementationfaces problems like the increase of individual-use cars and lack of regulationson commuting allowances for some positions.

The MoF created a plan toallocate commuting allowances to some positions and to reduce the number ofState-owned cars from 30 to 50 percent in ministries, sectors and localities,except for those operating in sea and islands as well as mountainous and extremelydisadvantaged areas.

According to a draft decisionreplacing Decision 32/2015/QD-TTg, the MoF put a price cap on buyingState-owned cars. A car for the head of a government agency has the maximumprice of 1.1 billion VND (49,000 USD), a car for deputy ministers not more than920 million VND (41,000 USD) and a jointly-used car no more than 720 millionVND (32,300 USD).

The decision also proposes solutionsof commuting allowances, including a one-time allocation of 6.5 million VND(291 USD) per month or 16,000 VND per kilometer (0.72 USD).

The MoF plans to submit thepolicy on commuting allowances to the Prime Minister for approval in the secondquarter of this year.-VNA
VNA

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