In following up the roadmap of administrative reform and deliberating Conclusion No 37-TB/TW of the Party Political Bureau, the Party caucus of the Ministry of Finance submitted the Memo 16/t.Tr-BCS dated 15 December 2011 to the Government Party caucus on renovating financial mechanism in public service.

It includes the following major contents:

- Completing investment methods for the state budget: The State plays the key role in providing basic public services, continuing to increase State expenditure to ensure public service provision and quantity and quality improvement.

- Completing financial mechanism towards public service organizations: enhancing delegation of responsibility, autonomy and self-responsibility to public-service establishments in terms of tasks, human resources, finance while taking into account specific characteristics of each establishments, potentiality and demands of market and management level.

- Renovating price calculating mechanism for public services: Gradually changing current policies on fee collection which fail to ensure sufficient revenue to cover necessary expenditure for public service provision to policies on market prices.

- Developing policies to encourage all sectors’ participation in  public service provision: Encouraging and increasing number of establishment as stipulated by the Decree 69/2008/ND-CP dated 30 May 2005 of the Government on policies on socialization of public services in the fields of education, vocational training, health, culture, sport and environment.

- Completing management tools and state management: Administrations at all levels build plans, make public requirement and development plans of public service establishments in each region, locality and facilitate public service balance development of each economic sectors in line with Government’s plans.

- Enhancing communication to reach high consensus on renovating operation mechanism of public service establishments and socialization of some public services./.