Society

State-owned car fleet to be cut in half

The Ministry of Finance will propose to the Government that the number of State-owned cars are cut by 30 to 50 percent by 2020.
State-owned car fleet to be cut in half ảnh 1Illustrative image (Source: Internet)
Hanoi (VNA) - TheMinistry of Finance will propose to the Government that the number ofState-owned cars are cut by 30 to 50 percent by 2020.

Minister of Finance Dinh Tien Dung was quoted ina Thanh Nien (Young People) newspaper’s report as saying thatthis year the ministry plans to provide a travel allowance to officials whowere previously eligible to use State-owned cars at ministries and localities.The allowance would subsidise business trips within a city or town, the reportsaid.

According to the law, only top leaders from the deputy ministerialrank and above were eligible to use State-owned cars. However, these were oftenused by local level department heads.

As of October last year, the ministry begancurbing the use of State-owned cars in an effort to reduce State spending. Thesix deputy finance ministers and heads of departments began to get travelallowances (their taxi fares subsidised), depending on the distance from theofficials’ house to the office. Alternatively, they could use their own carsand still receive the subsidy, but the use of State-owned cars was prohibited.

According to the latest statistics provided bythe ministry’s Public Asset Management Department, there are currently some37,000 State cars in use, each of which costs an average of 320 million VND (13,800USD) in maintenance each year.

If the travel allowance for a deputy minister is9 million VND (400 USD) per month, equivalent to 108 million VND (4,800 USD)per year, up to 230 million VND (10,200 USD) can be saved annually.

If the number of State-owned cars is cut by 30 percent,(11,100 cars), the Government would save 2.3 trillion VND (102 million USD)each year; this would increase to more than 4.2 trillion VND (186.7 million USD)if the number was cut by 50 percent.

Hanoi is the first locality nationwide toimplement the travel allowance scheme on a trial basis. Since the beginning ofthis year, the subsidy has been applied in eight administrative units,including four departments and four districts. Each official is given a travelallowance of 9 million VND per month, and each unit is allowed to operate twoState-owned cars for business travel.

Associate Professor Ngo Tri Long welcomed thenew move, but added that it was necessary to review and reduce the number ofunused State-owned cars and drivers once the subsidy takes effect.

“Otherwise, we will waste money on car subsidiesand wages for drivers while both the cars and drivers are not working,” hesaid.

He felt that the new policy should become a lawthat all units have to follow.

The Ministry of Finance should consult with theGovernment on deciding practical subsidy levels for leaders of local agencies,he said.-VNA
VNA
#State-owned cars #cut #business trips
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