Fund appropriation from compensation, support and resettlement organisation funding for self-financing public service units
The source gives no blanket conclusion but a conditional answer: a unit may set up funds from the surplus of its compensation, support and resettlement organisation funding only if that funding is autonomous recurrent expenditure; if the budget assignment decision classes it as non-autonomous recurrent expenditure, no funds may be set up. A public service unit handling compensation and site clearance, expected to be 100% self-financing for recurrent expenditure (group 2, 2027-2030), asked whether this funding counts as autonomous revenue, whether it may distribute financial results and whether it may set up funds. The answer relies on Decree 60/2021/ND-CP (amended by Decree 111/2025/ND-CP) and Decree 88/2024/ND-CP (amended by Decree 226/2025/ND-CP). Under Article 14(1) of Decree 60/2021, funds are drawn only from the surplus of autonomous recurrent revenue over expenditure. If the State budget funds public service delivery for organising compensation (including ordering or bidding) and the People's Committee's budget decision allocates it to autonomous recurrent funding (excluding compensation and resettlement support funding under Decree 88/2024), funds may be set up. If it is non-autonomous recurrent expenditure, they may not. The unit must check its own budget assignment decision.
RegHub explainer by New MarketerLast updated:
Based on:60/2021/NĐ-CP; 111/2025/NĐ-CP; 88/2024/NĐ-CP; 226/2025/NĐ-CP - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
Question
A public service unit performing compensation, support, resettlement and site clearance, whose main revenue is funding for organising compensation, support and resettlement of projects (public investment and enterprise-invested), expects to be assigned 100% autonomy over recurrent expenditure, group 2, for 2027-2030. It asked:
- Whether this funding counts as revenue for determining the recurrent-expenditure self-sufficiency level under Decree 60/2021/ND-CP and Decree 111/2025/ND-CP.
- Whether a group 2 unit may distribute financial results and set up funds under Article 14.
- Whether, with revenue exceeding expenditure after full accounting, it may set up the Career Development Fund, Income Supplement Fund, Reward Fund and Welfare Fund.
Content of the answer
Legal basis
- Article 10 of Decree 60/2021/ND-CP: determination of recurrent-expenditure self-sufficiency.
- Article 12: units proactively use autonomous financial sources for recurrent expenditure.
- Article 14(1): at year-end, after fully accounting for autonomous recurrent revenue and expenses, depreciation, taxes and State budget payments, the surplus is used in order: Career Development Fund; Income Supplement Fund; Reward and Welfare Funds; any remainder goes to the Career Development Fund.
- Article 27 of Decree 88/2024/ND-CP (amended by Article 2(7) of Decree 226/2025/ND-CP): the unit prepares a cost estimate for organising compensation for each project; the approving authority approves the cost; preparation, approval, use and settlement follow laws on the State budget, public investment and related laws.
Conclusion
The source does not answer each question directly. It states that funds can be set up only from the surplus of autonomous recurrent revenue over expenditure, so it must be determined whether the compensation organisation funding is autonomous recurrent funding of the unit:
- If the State budget funds public service delivery for organising compensation, support and resettlement (including ordering and bidding), the funding is reflected in autonomous recurrent State budget funding. Where the People's Committee's budget decision allocates it to autonomous recurrent funding (excluding compensation and resettlement support funding under Decree 88/2024/ND-CP as amended by Decree 226/2025/ND-CP): funds may be set up from the surplus of this funding.
- If the competent authority's budget decision classifies it as non-autonomous recurrent expenditure: no funds may be set up from this surplus.
The unit should apply these rules and check its own budget assignment decision.