Chính sách phân bổ ngân sách nhà nước ở việt nam tt tiếng anh

1 MINISTRY OF EDUCATION AND TRAINING / MINISTRY OF HOME AFFAIRS -/ - NATIONAL ACADEMY OF PUPLIC ADMINISTRATION NGUYEN MINH TAN THE STATE BUDGET ALLOCATION POLICY IN VIETNAM Major: Public Management Code: 62.3404 03 SUMMARY OF DOCTORAL THESIS HA NOI - 2019 The work has been completed at: NATIONAL ACADEMY OF PUPLIC ADMINISTRATION Supervisors: - ASSOCIATE PROFESSOR, PH.D LE CHI MAI - ASSOCIATE PROFESSOR, PH.D DINH VAN NHA PGS.TS Lê Chi Mai PGS.TS Đinh Văn Nhã Reviewer 1: ………………………………………… Reviewer 2: ………………………………………… Reviewer 3: ………………………………………… The thesis is presented at the Thesis Assessment Council Location: Meeting Hall, Building A, National Academy of Public Administration No.77, Nguyen Chi Thanh, Dong Da, Hanoi Time: date month 2019 The thesis can be found at the library of Vietnam National Library or Library of National Academy of Public Administration INTRODUCTION THE NECESSARY OF THE THESIS The state budget allocation policy is the State’s selection of methods to allocate resources among sectors, branches and budget levels, among units using state budget according to certain bases, principles, criteria and norms in order to ensure resources for branches, levels and units using state budget to well perform their assigned functions and tasks The policy of state budget allocation is one of the fundamental issues of state management Together with the socio-economic development and the requirement of State intervention in the market economy to ensure effective, stable and fair objectives, the allocation of state budget is an important content to ensure resources for state agencies and organizations to perform their functions and tasks in the most effective way The state budget is the national financial resource The effective management of the state budget formation and allocation for the right purposes and right subjects is an important and urgent issue for many countries in the world Therefore, the state budget management is an integral part of state management on socio-economic aspect and is implemented by the system of state management agencies from central to local levels In both theoretical and practical summary aspects, the state budget allocation policy has been recognized as the viewpoints, objectives, principles, tools and measures for the State to use in the process of distribution/allocation of state budget fund (public fund) ensuring the socio-economic development of the country in the present and in the future In Vietnam, the state budget allocation policy still has shortcomings such as: the allocation of the state budget is mainly based on the past, the tradition, based on subjective will, annually tabulated on the basis of evaluating the performance of previous years, therefore, the increase or decrease of budget allocation is only adapted from the Decisions of the Prime Minister, the Chairman of the People’s Committee or the Resolutions of the National Assembly and the Provincial People’s Council on the principles, criteria and norms for allocation of central budget and local budget, not closely associated with the implementation of socio-economic development initiatives and output efficiency; and is managed according to the performance results This shows that it is necessary to have an objective and comprehensive assessment of the reality of the state budget allocation in Vietnam in the past time, pointing out the shortcomings to get the main viewpoints and solutions to improve the state budget allocation policy is an urgent requirement In the face of theoretical and practical requirements of completing the state budget allocation policy in Vietnam, the PhD student select the topic “The State budget allocation policy in Vietnam” as a doctoral thesis in Public management, wishing to make some scientific and practical recommendations to contribute to the process of state budget reform, public finance reform and Vietnam’s public administration reform in the context of international integration PURPOSE AND RESEARCH TASK The thesis is carried out on the basis of the research hypothesis that the current law provisions on state budget allocation in Vietnam are not appropriate and have many shortcomings, thus, the effectiveness of state budget management is insufficient Therefore, the purpose and research task of the thesis is to collect information, prove and propose solutions that are more suitable and higher effective in the management of the state budget to improve the state budget allocation policy in Vietnam The thesis aims to achieve the following practical purposes: - To systematize the theory of the state budget and the state budget allocation policy; relationship between state budget allocation and decentralization of state budget management - To analyze and evaluate the real situation of state budget allocation according to the criteria and norms of state budget allocation for central agencies and localities in Vietnam today To analyze and clarify the advantages and shortcomings of this task to point out the issues to be addressed in the state budget allocation policy - To propose some point of views and solutions to complete the state budget allocation in Vietnam in the new period and recommendations to competent state agencies to effectively and effectively implement state budget allocation Research task of the thesis: - To research and clarify issues related to the state budget such as: concepts, positions, roles, the state budget system and state budget management, principles of state budget allocation and relations in state budget allocation of state agencies in the legitimate State - To analyze the scientific basis of the state budget allocation policy such as: awareness about the state budget allocation policy, concept, characteristics, objectives and principles of policy formulation and contents of policy; clarify the authority to allocate budgets of the entities in the state apparatus and the process of budget allocation, evaluation criteria for the state budget allocation policy; analyze the specific characteristics of Vietnam affecting the state budget allocation and consult the experience of state budget allocation of some countries around the world - To analyze the current status of the state budget allocation policy in Vietnam, focusing on the real situation of the main contents of state budget allocation for sectors, ministries, branches and localities (according to the areas of regular expenditures and development investment expenditures) On that basis, to assess the successes and limitations of the state budget allocation policy through surveys of stakeholders and pursuant to the evaluation criteria for the state budget allocation policy - To propose viewpoints and solutions to complete the state budget allocation policy, focusing on improving the bases for allocating the state budget, developing a medium-term budget framework, and allocating state budget on the basis of the output together with the revision of the criteria and norms for state budget allocation (after the year 2020) in order to ensure compliance with the provisions of law and international practices OBJECTS AND SCOPE OF THE THESIS - Research objects are theoretical and practical issues on the policy of state budget allocation in Vietnam - Scope of content: The thesis focuses on studying the contents of the state budget allocation policy in terms of theory and legal, studying the real situation of implementing these contents on a national scale and proposing solutions as an application base for allocating budget in Ministries, branches and localities according to the areas of regular expenditures and development investment spending in Vietnam Scope of space: The thesis focuses on studying state budget allocation through out the country, from a macro perspective, covering branches, sectors and localities by means of principles, criteria and norms of state budget issued by the State; studying and comparing to international practices on state budget allocation according to output and performance results; thereby, expressing opinions and proposing solutions to complete the state budget allocation policy Scope of time: The thesis is based on the stages of applying the State Budget Law (1996, 2002 and 2015); the real status of the state budget that was studied in the period of 2011-2017 in order to deeply analyze the data with a reasonable period of time The proposed solutions are applied for the following years, in accordance with the requirements of implementing the 2013 Constitution and the 2015 State Budget Law (came to effect from 2017) THEORETICAL BASIS AND RESEARCH METHODS OF THE THESIS About theoretical basis: The thesis topic “The state budget allocation policy in Vietnam” is studied on the base of the foundation of Marxist-Leninist theory of dialectical materialism and historical materialism, theories of public finance and state budget management, the theory of state budget management in accordance with the output result The author interprets the issues of managing state budget under dialectical logical thinking in an objective way and in relation to other issues related to state budget management About research methods: During the research process, the author used the research methods as follows: Historical research method : in order to understand the origin, the foundation of the state budget and the policies of the State, in which focusing on promulgating and implementing the state budget allocation policy of management subjects and criteria, norms for budget allocation under the contents of state budget allocation policy; studying the real status of allocation of development investment expenditures and regular expenditures in Vietnam, associated with the requirements of socio-economic development, comply with the provisions of the State Budget Law Synthetic method: to systematize viewpoints on state budget allocation; explore the provisions of Vietnamese laws and international experience, especially the principles of state budget allocation, criteria and norms for budget allocation, thereby proposing recommendations to innovate ways of allocating state budget on the base of output results and good international practices; systematize the views and policies of the Party and State, propose solutions to complete the state budget allocation policy Comparative method: to compare the principles of state budget allocation and good international practices on state budget allocation, Vietnamese provisions of laws on state budget allocation, thereby, assesses the suitability of the policy, focus on implementing policies in real life to have appropriate solutions and recommendations Analysis method: to define the content and connotation of the state budget allocation policy and subjects to issue and implement the state budget allocation policy applicable to the case of Vietnam; assess the real status of law application on state budget allocation; make recommendations and solutions to improve the efficiency of state budget allocation in Vietnam Survey method of sociological investigation: through the Questionnaire, assess the reality of implementing the state budget allocation policy in Vietnam and prove some recommendations and proposals of the thesis at the aim to improve the efficiency of state budget allocation, ensure the credibility of judgments and propose solutions The thesis uses a survey method of sociological investigation for a number of experienced managers and consultants In addition, the thesis also uses the method of collecting documents and interviewing experts to prove the viewpoints, assessment and judgment of the thesis SCIENTIFIC AND PRACTICAL MEANING OF THE THESIS - The research result of the thesis will provide scientific foundation and information on issues related to the theory of state budget management, public management and the theory of state budget allocation policy - The research result of the thesis has a positive impact on promoting the improvement of the state budget allocation among central and local agencies The approach of the thesis orients to allocate budget basing on the “output” result, creating equality and publicity in budget allocation On the basis of following the policies and guidelines of the Party and the State, propose substantial reform directions in allocating the state budget in Vietnam, associated with the promulgation and improvement of the principles, criteria and norms for budget allocation Policy and law solutions are also proposed in the thesis - Research result of the thesis has certain value in studying and learning, especially is useful references for policy makers and students, with certain contributions to science of public finance management NEW CONTRIBUTIONS OF THE THESIS In theory, the thesis introduces the concept of the state budget allocation policy, clarify the characteristics, roles and responsibilities of the promulgating subjects and the subjects of policy implementation, define the fundamental contents of the state budget allocation policy, propose criteria for assessing the state budget allocation policy in Vietnam; specify the scientific foundation of the allocation and management of the budget according to the performance results (output results) Study the experience of state budget allocation of some countries in the world and withdraw some lessons that can be applied in specific conditions of Vietnam In practice, on the basis of analyzing the content of the state budget allocation policy and the actual implementation of this policy through the period of budget stability, the thesis assesses the successes and limitations of the policy; The thesis clarifies the main reasons leading to limitations, namely: the Vietnamese state budget system is “integrated” and complicated; the mechanism of decentralization of budget management is not reasonable; the criteria and norms for state budget allocation are still inadequate and the complex nature of the state budget balance; the implementation of policies and laws still has many shortcomings and limitations The thesis proposes a viewpoint on state budget allocation basing on output result and complete solutions to improve the efficiency of state budget allocation, recommends solutions to complete the allocation of the state budget policy adheres to the Party and State’s orientation on public finance reform, state administrative reform; organizes the implementation of the 2013 Constitution, the 2015 State Budget Law (came to effect from 2017) and the other relevant laws to effectively implement the state budget allocation policy; proposes revision of criteria and norms for state budget allocation (after 2020 and vision to 2030) in the direction of managing the state budget in accordance with the output results 7 STRUCTURE OF THE THESIS The thesis structure includes Introduction; Contents and Conclusion There is also a list of references, Appendix As follows: Introduction Content: This section consists of chapters, namely: Chapter 1: Overview of research situation related to the thesis topic Chapter 2: Scientific foundations for the state budget allocation policy Chapter 3: Current real situation of state budget allocation policy in Vietnam Chapter 4: Views, orientations and solutions to complete the state budget allocation policy in Vietnam Conclusion The list of references, Appendix Chapter OVERVIEW OF RESEARCH SITUATION RELATED TO THE THESIS TOPIC 1.1 OVERVIEW OF RESEARCH SITUATION RELATED TO THE THESIS TOPIC In the world, there are not many studies specifically on the state budget allocation policy In Vietnam, together with the opening of the economy and bilateral and multilateral cooperation through international projects, a number of international experts working in Vietnam have studied Vietnam’s public financial situation and compared to international one It can be generalized the research as follows: - The publication “Municipal Expenditures” - by American author Mabel Waker (1980) was concerned about public finance, particularly the issue of budget allocation, an overview of budget expenditure theory - The article “The lack of a Budgetary Theory” - by author V.O Key (1940) pointed out the issue of theory on budget and analyzed its importance in macroeconomic management as well as increasing the efficiency of budget allocations by Government - The publication “Public Investment” - by author Wolfgang Streeck and Daniel Mertens (2007) has practically surveyed the public investment in countries (The United States, Germany and Sweden) from 1981 to 2007 and concluded that these three countries tended to adjust the spending structure of public investment in the context of limited budget, increase investment spending on education, research and development, support for families under preferential treatment policy, support the labor market The authors also pointed out the relationship among public investments, in the context of limited budget how to make public investment to achieve high efficiency, limit public debt and budget deficit - The publication Public Expenditue on Doimoi Stragate in Vietnam (2010) or National Financial Accountability Assessment (PAFI) (2013) by the experts from World Bank (WB) focused on public expenditures such as: Public Finance: Medium Term Framework - Benefit, Taxnomy, Stages and International Experience; Performance Budgeting in Korea, OECD Journal on Budgeting (2007), etc Foreign experts have mentioned many aspects of public financial management in general and state budget management in particular, making references for domestic researchers and policy makers - The book “Public policy planning and implementation” by Dr Le Nhu Thanh and Dr Le Van Hoa (2016) has asserted that public policy is a key instrument to address public problems in order to promote social development towards certain directions The authors pointed out that public policy play a vital role in directing socio-economic activities and demonstrating the State’s behavior in front of a public issue In the book “Overview of public policy analysis” by Dr Nguyen Huu Hai (2016) shared the same view confirming that public policy plays a substantial role in orienting, establishing, encouraging, supporting, regulating and adjusting the market failures - The book “Basic issues of policy and policy processes” by Dr Le Chi Mai (2001) has shown that public policy is always considered from a process perspective, including activities related to each other that have been conducted since the policy issue arises until it is resolved by the subjects engaging in this process - The ministry-level scientific research work - Ministry of Finance (2016) on “Summarize 10 years of period from 2006 to 2016 on the implementation of financial and budgetary guidelines and policies for rapid and sustainable economic development” argued that financial policy is the Government’s policy aiming to influence the orientation of national socio-economic development through changes in the Government’s spending, directly affecting the total supply and demand of the economy, thereby affecting growth, inflation, social security and macroeconomic stability - The book “Innovation of fiscal policy” by Dr Bui Duong Nghieu (2009) has argued that fiscal policy is considered as a tool of the Government to effectively mobilize, distribute and use financial resources in order to perform the national socio-economic objectives - Scientific research work of University of Economics Ho Chi Minh City (2005) by Dr Su Dinh Thanh on “Applying the method of budgeting on the base of output results in public expenditure management in Vietnam” has emphasized the assessment of public spending efficiency, proposed to improve state management efficiency for state budget expenditures according to the output results This is a new approach adopted by many countries, however, the biggest challenge of this management model is to define (measure) the output results 1.2 GENERAL OVERVIEW OF RESEARCH SITUATION AND PROPOSED ISSUES THAT NEED TO BE STUDED OF THE THESIS Research works related to the state budget allocation policy by the Finance - Budget Committee of the National Assembly, the Ministry of Finance, the Academy of Finance, the National Economics University and the National Academy of Public Administration The research results show that: - The awareness about the state budget allocation policy has not clarified the concept, characteristics and purpose of the state budget allocation policy A number of research works confirm the allocation of the state budget affected by political, economic, social, internal and external factors, according to the independent structure of each ministry, branch and locality, however, it is still not united in terms of overall macroeconomic policy neccesitating to ensure the allocation of state budget in accordance with the economic, political and social conditions of Vietnam - Assessment of the reality of the state budget allocation policy in Vietnam has different levels depending on the approach of each author; Some authors believe that the state budget allocation mechanism is excessively dependent on the Government, while the local authorities not have the necessary autonomy; there is a study assessing that the Party’s leadership will affect state budget allocation; some other authors assume that the leadership of the Party is necessary to allocate the state budget in the right direction; or there is also a study cofirming that the state budget allocation must definitely be attached to the collecting ability and the spending tasks of each level and sector; others think that it is necessary to base on specific criteria, principles and norms for allocation in order to not depend on subjective will - Some studies also propose different solutions to improve the effectiveness and efficiency of state budget allocation; enhance the position and role of the National Assembly and People’s Councils, strengthen specialized representatives, establish specialized agencies powerful enough to supervise the allocation of the state budget; yet others believe that the State needs to have strict law enforcement to ensure the allocation of the state budget is fairly and objectively implemented, restrict negativity, waste and corruption; while some studies suggest the shift of the task of allocating the state budget from the legislature to the executive body, yet some other studies assume that the budget is the tax payment by the people and the National Assembly and the People’s Councils are representative agencies that need to strengthen their power of state budget allocation, ensuring independence and objectivity In response to the above issues, the thesis has continuously inherited and clarified the debatable or left-open issues, searched for research gaps and increased the values of research On that basis, the issues that need to be continuously addressed are followed: Firstly, the thesis studies in depth, analyzes concepts and characteristics of the state budget allocation policy, in association with the implementation of the 2013 Constitution, the 2015 State Budget Law and the Resolution of National Assembly, the Decree of Government and legal documents of Ministries, central and local agencies Secondly, the thesis studies and evaluates the real status of the state budget allocation policy; clarifies the difference between the state budget allocation and the decentralization of state budget management in context of specific characteristics of natural conditions and development levels of localities and regions in Vietnam Thirdly, the thesis analyzes, explains and clarifies the basis and foundation for selecting criteria and norms for state budget allocation, applied to Ministries, central and local agencies Fourthly, the thesis studies and clarifies the judgments and assessments on the state budget allocation policy on the basis of interdisciplinary approach, combined with actual questionnaire and surveys Fifthly, on the basis of studying the theory, fully assessing the causes of the real situation, the thesis provides viewpoints, orientations and solutions to complete the state budget allocation policy in Vietnam Chapter SCIENTIFIC FOUNDATIONS FOR THE STATE BUDGET ALLOCATION 2.1 SOME BASIC THEORETICAL ISSUES ON STATE BUDGET AND STATE BUDGET ALLOCATION 2.1.1 Overview of the state budget 10 The state budget is a historical category The State was born when society had class division and class struggle To ensure the existence and operation, the State has utilized political power to mobilize a part of social wealth to set up a public fund to meet its spending needs The process of formation and use of public fund is the process by which the State takes part in the distribution of financial resources through activities of money collection and expenditure Money collection and expenditure activities are external expressions, while public funds represent the internal material content of finance The state budget is always associated with the state apparatus, at the aim to maintain the existence and promote the effectiveness and efficiency of the state apparatus According to Vietnamese Dictionary “Budget is a list of all expenses and revenues as planned” The term "budget", means a wallet, a sack, a purse The nature of the state budget is the economic, political and social relations arising in the process of mobilizing, allocating and using resources by the State The 2015 State Budget Law of Vietnam defines: “The state budget is all State revenues and expenditures that are estimated and conducted within a certain period of time, decided by competent state agencies so as to ensure the implementation of the State’s functions and tasks” The state budget reflects the national socio-economic development The structure of the state budget includes many contents of revenue and expenditure arranged in a certain order Taking a look at the structure of the state budget can provide us information about the socio-economic development level, the ability of the economy, the management level of the State The state budget plays a critical role in the market economy The state budget is comprehensively managed towards the principle of democratic centralism, efficiency, economy, publicity, transparency and fairness; with assigned and decentralized management; attached powers to responsibilities The management of the state budget must ensure the balance of revenues and expenditures; the harmony and rationality in the structure of revenues and expenditures among sectors, branches and administrations 2.1.2 State budget system and decentralization of state budget management The state budget system is understood as the overall level of budgets that have an organic relationship with each other in the process of implementing the revenue and expenditure tasks of each budget level The state budget level is formed on the basis of the state government level, in accordance with the current organizational model of state government system, the state budget system including central budget and local budget The state budget system normally includes: central budget and local budget In Vietnam, pursuant to the 2013 Constitution (Article 55): the state budget includes central budget and local budget Local budget includes the budget of administrative units at all levels with the organizations of People’s Councils and People’s Committees The organizational model of local budget includes the budget of the provinces and centrally-run cities (collectively referred to as the provincial budget), the budget of the districts, towns, cities under the provincial governments (collectively referred to as district budget) and budget of commune, ward and town level (collectively referred to as commune budget) The decentralization of the state budget management is the specification of tasks and powers among the state administration levels from the central to local in the operation of the state budget The content of decentralization of state budget management basically consists of main contents: 16 Firstly, the socio-economic factors: In the process of allocating the state budget, the stages of the financial system (public finance, corporate finance, international finance, etc.) are all related to the promulgation and implementation of state budget allocation policy Secondly, the political-legal factors: The policy of state budget allocation is often affected by political-legal issues It reflects the development of the economy, on the other hand, it is affected by the political factor of the country through the law system and the objectives of the ruling class Thirdly, the fsctors of economic benefits: State budget allocation policy represents the State’s ideology, views, objectives and solutions to issues related to the economic benefits of the subjects in society If the allocation of state budgets is not for the right purposes, not for the right objects, and unreasonable, public financial resources are likely to be lost and wasted; and not meet the proposed objectives Fourthly, the international integration factors: This is an objective trend, controlling the orientations, views, management and operating methods of the state management apparatus in all fields In addition, a number of other factors also affect the state budget allocation policy such as the capacity of the subjects of state budget allocation, the selection of criteria to allocate the state budget, the specific characteristics of fields and localities being allocated the state budget and the State’s views on the state budget expenditure priorities 2.2.7 The trend of selecting the state budget allocation policy according to the output results According to the Organization for Economic Co-operation and Development (OECD), management by output results is a management approach focusing on implementation and achievement of outputs, results or impacts Results of a program, an objective will be the basis for the State to allocate state budget Programs that bring positive impacts will be prioritized in state budget allocation and vice versa, ineffective programs will be limited to allocate resources by the State The theory of management by results is still controversial thing, especially the way to measure and determine the results and effectiveness of each field, each level, each branch and each program, and each objective have different assessment methods However, the general principle is that what management by manafactured products is, results, efficiency or impact are positive changes that can bring about the products created for society, in which, social impact is the most difficult factor to evaluate The relationship between output products and social impacts is a reciprocal relationship, affecting each other and greatly influenced by the social environment This relationship can be illustrated in diagram 2.3 Output product Outcome Social Social environment impact 17 Diagram 2.3: The relationship between output products and results The relationship between output products and results, efficiency or social impact is always a challenge when assessing the allocation of state resources for a certain program or objective When assessing social impacts, the internal factors and external factors could be included In order to follow the method of management by results, it is necessary to identify the input, activities, output and results of each program and objective set by the State Đầu vào ĐầuInput vào Activities Hoạt Hoạt động động Management by the input Quản lý theo đầu vào Output Result Impact Management by results Diagram 2.4: Logic of “result chain” In Diagram 2.4, inputs are necessary resources, such as money, human resources, materials, etc used by agencies and units to implement programs and projects Activity is the process of using input factors to create products Output is specific types of goods, services or products created by the program or project As a result, its impacts and effects on the community can be immediate, medium-term or long-term ones Considering the influence is the consideration of the level of achieving the final objectives of a program In this management method, when implementing programs, managers should not pay much attention to the implementation of detailed and strict regulations on inputs (such as fund, human resources, etc.) or processes (implementing method) and focuses on the results achieved after the implementation process Management by output and results will encourage units and organizations to be more autonomous in approving, allocating and managing state budget resources for their units and organizations, thereby promoting dynamism and creativity in the implementation process; at the same time, it is also necessary to direct inspection and supervision agencies to assess whether the program can meet its objectives and whether there is any way to achieve the goal with less cost Management by output and results shift from focusing on input factor and activities to focusing on results (at different levels) that the program aims to achieve From the viewpoint of associating the objectives and results to the socio-economic development objectives of the country as well as each locality, the process of allocating the state budget is towards the objectives and results is illustrated in the diagram 2.5 below: National Chiến sociolược economic quốc gia PTKTXH National-level objectives and results National/ ministerial and sectoral socio-economic development plans Provincial objectives development strategy and results Provincial socio-economic development plans Demand for socioeconomic Ability of socio- Ability of resources Demand for 18 Diagram 2.5 Diagram of state budget allocation according to objectives and results 2.3 EXPERIENCE ON THE STATE BUDGETS ALLOCATION OF A NUMBER OF COUNTRIES IN THE WORLD The thesis examines the experience on state budget allocations of the Federal Republic of Germany, the Czech Republic, Japan, South Korea and China Through studying, it can be withdrawn that the experiences of a number of countries can be applied into the specific conditions of Vietnam Firstly, the Federal Republic of Germany, the Czech Republic, Japan, and Korea have high economic development speed, therefore their legal systems are comprehensive and complete It is necessary to apply a medium-term expenditure framework in state budget allocation The independent budget allocation model of budget levels is a good experience for Vietnam Secondly, medium-term financial planning and multi-year revenue and expenditure forecasts are the bases for determining the annual budget allocation that needs to be studied to continue to deploy, avoiding the spread of capital allocation Thirdly, the National Assembly’s power in the budget field through the budget allocation process in the National Assembly shows that the National Assembly has full power to decide the budget and can change revenues, expenditures, budget deficits or surpluses submitted by the Government Fourthly, countries tend to allocate budget according to the outputs It is necessary to have acknowledgment about the value of budget allocations according to the outputs and strong support from the legislature Chapter CURRENT SITUATION OF STATE BUDGET ALLOCATION POLICY IN VIETNAM 3.1 OVERVIEW OF THE STATE BUDGET SITUATION FROM 2011 TO 2018 - The scale of state budget revenue shows that the ratio of GDP mobilization to the state budget has increased following absolute numbers, while has decreased following the relative number (percentage rate) The main reason is due to complicated developments of the domestic and world economic situation, Vietnam’s GDP growth is lower than expected The policies of tax exemption, reduction, and extension have long-term impact on cultivating long-term revenue, yet short-term impacts also considerably reduce the state budget, about 1% of GDP - The size of state budget shows that the State must balance resources to implement the Party’s Resolution and many resolutions of the Central, National Assembly and Government, therefore, the pressure to allocate and increase in state budget expenditure has been increasing; and the structure of state budget expenditure has always changed in accordance with the situation to ensure a reasonable structure between: regular expenditures, development investment expenditures and debt payment The growth rate of state budget revenues and expenditures tend to be more and more diminishing (revenues decrease, expenditure increase) - Although the state budget deficit has been gradually reduced (pursuant to the 2015 State Budget Law) to approach international practices (except for principal debt payment), the public debt ratio tends to increase, especially government debt (increased from 50.5% of GDP in 2013 to 53.2% of GDP in 2017 and 53.1% in 2018; local government debt increased from 0.8% of GDP in 2013 to 1.2% GDP in 2018) This is a challenge in managing state budget allocations 19 3.2 CURRENT SITUATION OF STATE BUDGET ALLOCATION POLICY IN VIETNAM 3.2.1 State budget allocation according to sectors (development investment expenditures and regular expenditures) In the past years, implementing the Resolution of the 11th and 12th Party Central Committee, and the National Assembly’s Resolution on restructuring the economy, renovating the growth model, improving the quality and efficiency of the economy; including public investment restructuring, the proportion of development investment expenditures has decreased, regular expenditures have increased (mainly due to increased wages), however, with regular expenditure structure accounts for 64% -65%, development investment: 25% -27%, debt payment: 8% -10% is relatively reasonable Allocation of development investment expenditures of all levels and sectors complied with and followed the State’s regulations, creating significant alternation in the management and use of budget more closely, more reasonably and more effectively Regular expenditure allocation has basically met the regular tasks of the State Adjust basic salary, public allowance (25%), Party allowance, union, attraction allowance, career allowance and social security policies promulgation, etc Proportion of expenditures for salary and people accounts for the majority in regular expenditures In the period of 2011-2018, regular expenditures were at an average of 64.8% of the total state budget expenditure, an increase of approximately 10% compared to the period of 2006-2010 (55% on average) 3.2.2 State budget allocation to Ministries and central agencies Implementing the provisions of the State Budget Law, the Government has reported to the National Assembly to allocate state budget to Ministries and central agencies aiming to meet the requirements of implementing state management functions and tasks of each ministry based on the specific criteria and norms for budget allocation of each Ministry (such as: number of staff, number of contracted laborers, implementation of projects, programs and tasks that are assigned by the State, etc.) 3.2.3 State budget allocation to localities As well as the allocation of state budget to ministries and central agencies, the allocation of state budget to localities (provinces and cities directly under the Central Government) in Vietnam has gradually followed the criteria and norms for allocation pursuant to Decision 139/TTg (2003-2006 period); Decisions 151/TTg and 210/TTg (2007-2010 period); Decisions 59/TTg and 60/TTg (20112015 period); Decisions 46/TTg and 40/TTg (2016-2020 period) 3.2.4 State budget allocation to public non-business units The allocation of state budget for public non-business units to provide public services has made positive changes, reflecting a higher level of socialization, making contribution to ensure people’s access to public services The State has renovated the methods of operation and investment; implemented the mechanism of ordering, purchasing goods, and assigning the task of providing public services; collaborated and associated with public non-business units In the context that the state budget is limited and cannot continue to subsidize, it still has to play a fundamental role in providing essential public services; besides that, the demand for spending is constantly increasing in all aspects (health, education, social welfare, etc.); therefore, the state budget has been invested in essential and basic public services in order to gradually reduce the burden of the state budget 20 3.3 GENERAL ASSESSMENT ON THE STATE BUDGET POLICY ALLOVATION IN VIETNAM 3.3.1 Some achieved results 3.3.1.1 Success in planning and implementing the state budget allocation policy Firstly, the State has stipulated clearly in legal documents on the authority to issue policies on state budget allocation In which, the National Assembly - as the highest state power agency, has the authority to decide the state budget estimates, allocate central budget, and approve the state budget settlement The National Assembly decides the total state budget revenues and expenditures, the state budget overspending and the expenditures of some important sectors; decides major programs and projects belonging to the state budget; decides the allocation of budgets according to each sector, each Ministry and central agency and decides the tasks of revenue and expenditure, additional amount from the central to provinces and centrally-run cities Secondly, the state budget allocation policy has been based on scientific foundations, meeting the requirements of reality The allocation and distribution of estimates from the budget estimating unit to the budget using units is pushed up earlier; administrative procedures in the budget allocation are simplified (eliminate the allocation by quarter, by group of items, assign autonomy to level estimating units in adjusting estimates between the budget using units, between investment projects of fundamental construction within the total estimated budget, etc.); implementing the method of withdrawing estimates at the State Treasury Thirdly, along with the process of promoting decentralization and allocation of resources to local governments and agencies and budget using units, the State has also made fundamental reforms on the management mechanism for public administrative agencies, public non-business units, strengthening the mechanism of autonomy and self-responsibility for public non-business units and performing allocated administrative expenditure mechanism Fourthly, the state budget allocation policy has relatively good response to the criteria and norms for state budget allocation, which are periodically improved to associate to each period of budget stability (through periods of budget stability: 2004-2006, 2007-2010, 2011-2015, 2016-2020) The implementation is strictly conducted in the localities and regularly inspected and supervised by senior state agencies 3.3.1.2.The impact of the state budget allocation policy to economic growth and structure According to statistics comparing the relationship between the average annual expenditure growth rate of the state budget and the average growth rate of GDP and the average contribution to GDP growth in the period 2011-2018, it can be seen that the total state budget expenditure in the period 2011 - 2018 has achieved an average growth rate of about 18.4%/year, higher than the average annual economic growth rate (7.4%/year) Particularly in 2018, the total state budget expenditure increased by 25.4% compared to 2017, this is the year with the highest spending level and higher than the average of the period 2011 - 2016, contributing to economic growth in 2018 reached 7.08% and the period 2016-2020 reached about 6-7% 3.3.2 Some limitations, problems and causes Besides the achieved results, the thesis has analyzed some limitations in the state budget allocation policy in Vietnam as follows: 21 Firstly, the budget year and the preparation, distribution and allocation of estimates: The budget year in Vietnam is defined from January to December 31 annually (calendar year) Vietnam has issued a 5-year and 3-year medium-term financial plan, but not completed yet Secondly, the budget allocation process: The current budget allocation process is: State budget estimates must be made from the bottom up (from the grassroots) and delivered in the opposite direction This is a very complicated process, without guarantee in time according to regulations (assigning and allocating estimates to budget-using units must be completed before December 31 of the previous year) There have been localities and branches that only complete the and allocation of until the end of the first quarter of the following year The slow estimates assignation and allocation, multiple allocations, many times have affected the disbursement process of funding sources Thirdly, the competence to decide budget allocation: Unlike other countries, Vietnam’s budget levels not exist independently but are “integrated” into each other The competence to decide budget allocation is overlapping, not yet creating conditions for the localities to truly own their budget The State budget includes central budget and local budget The lower-level budget is an integral part of the higher-level budget; higher-level budget includes the lower-level one Fourthly, the allocation of state budget in the medium-term financial plan: The 2015 State Budget Law regulates that the annual budget estimates must be associated with the medium-term financial plan In fact, there have been a number of budget spending tasks determined to cover expenditures in several years, such as: construction investment projects implemented for many years; State-level scientific and technological programs, etc The incomplete and inadequate implementation of the medium-term financial plan has limited the activeness due to the lack of vision of ministries, branches and localities Fifthly, the allocation of state budget according to the output results (the result of tasks): The 2015 State Budget Law regulates the formulation and allocation of budgets according to programs and tasks (output results) in order to gradually replace the method of state budget allocation following the planned and administrative targets, without focusing on the results of work In fact, there are some contents of budget spending that have been set up, arranged according to the program, such as national target programs; target programs, etc however, these programs, tasks and projects are still incomplete and unclear about the objectives and methods to determine and assess the implementation results as bases for making budgetvestimaté and performance result assessment (output results) The main causes leading to limitations and obstacles on the state budget allocation policy in Vietnam over the past time can be mentioned as follows: Firstly, because of the integrated and complex of Vietnamese state budget system: Examining the structure model of the Federal state (Germany, USA, Malaysia, Canada, Australia, etc.), the budget system is quite clear, without “integration” between Federal government and federation Vietnam - with a single State structure model, thereby, the allocation of budgets has different characteristics from the Federal State, the budget system is inseparable from the administrative system Secondly, because the decentralization of revenue sources, the task of State budget spending is not reasonable: To ensure the central role of the central budget is to allocate important revenue sources, with a large proportion of the total tax revenue of the whole country (such as: import and export taxes, oil and gas revenues, etc.); Local budgets are allocated 100% revenue for small sources, directly attached to the 22 management of local authorities However, the limitation in revenue decentralization is that the majority of local authorities not have enough revenue to cover expenditure (47/63 provinces and cities), so they cannot promote the local initiative and creativity On the other hand, the decentralization of revenue sources between the budgets of all levels following the current regulations is quite complicated, unreasonable, allocated according to tax at the same time and allocated according to types of products and services Thirdly, due to the criteria, norms for state budget allocation are not associated to the reality This cause is also derived from the fluctuation of the economy and the influence of price market factor, therefore, the system of criteria, norms for state budget allocation (both investment and regular expenditures) in 2011-2015 period and 2016-2020 period are also unstable The demand for budget to implement the assigned tasks to the task is getting bigger and bigger, creating great pressure for the state budget allocation process In the face of alternation of practice, the system of criteria and norms for state budget allocation after each period of budget stability has been increased (such as the norm of regular expenditure increased by 70%, investment spending increased by 10% in in the period of 2016-2020), but very quickly being outdated, old and revealing many points that are no longer suitable with reality Fourthly, due to the complex nature of the state budget balance, inadequate budget revenues and expenditures, incomprehension and incomplete The policies of the State often change, sometimes too fast compared to the roadmap, thus, the allocation of the state budget does not keep up with the changes in budget mechanisms and policies, etc The norms not meet the demand, and far below the actual requirements Chapter VIEWPOINTS, ORIENTATIONS AND SOLUTIONS TO COMPLETE THE STATE BUDGET ALLOCATION POLICY IN VIETNAM 4.1 VIEWPOINTS, ORIENTATIONS FOR ALLOCATION OF STATE BUDGET 4.1.1 Viewpoints and orientations of the Party and State on state budget allocation The author of the thesis studied the National Assembly’s Resolutions, Documents of the Communist Party of Vietnam and clearly acknowledged that the state budget allocation policy - as an organic part of national financial policy must be a central and focal nature to exploit in the direction of diversifying resources, promoting economic development, creating a new position and force to develop Vietnam and actively integrate into the world The allocation of the state budget according to the objectives of prioritizing the development of the economic sector, regions must be consistent with the development orientation of the whole country on the basis of renovating the growth model, improving labor productivity, quality and efficiency of the economy 4.1.2 Viewpoints of the thesis on state budget allocation Studying the views and orientations of the Party and the State on the allocation of state budget, the author of the thesis assume that it is necessary to continue to supplement and complete to suit the new situation, especially to clarify the views , orientations for managing and allocating budgets based on the output and results of tasks This is a complex, difficult challenge - Firstly, grasping the viewpoint of state power is unified in accordance with the 2013 Constitution Accordingly, it is necessary to complete the mechanism of assignment, decentralization, 23 coordination and control of power between legislative bodies and executive bodies; promote the initiative, creativity and responsibility of the budget using units, of the local authorities, but must meet the unified management requirements of the Government on institutions and policies for one a single state, not a federal state; ensuring the central role of the central budget, promoting the activeness of local budget - Secondly, it is necessary to take the basis of reference as the result, efficiency and impact assessment when implementing the output budget allocation Internal functions and generalstandards for output allocation are all aimed at the ultimate objective of “maximizing efficiency” of public resource use The budget must become the decisive tool of the State, of each level of government to regulate the economy - Thirdly, the budget allocation according to the output, the results of the task implementation should be carefully implemented step by step, with a roadmap, in accordance with the capacity, qualifications and management infrastructure of country The allocation of state budget according to output results is a high-level management and allocation system, requiring metrics, evaluation, information about the results and accounting systems to be replaced accordingly (cash accounting must change to accrual accounting) Therefore, when the conditions are not synchronized, it is impossible to improve immediately The renovation and improvement of the state budget allocation policy must be implemented carefully, ensuring continuity, having inheritance, stability of the public sector, as well as of the entire economy - Fourthly, the programs and objectives of the State must be designed and planned in a specific way, with clear tasks to achieve the set objectives, as well as the foundation to implement the allocation of the state budget are based on the output results, improving the efficiency of the use of the state budget, focusing on budget allocations according to the output results - Fifthly, for the areas that the private sector can undertake, the State should adjust the scope of the State’s intervention, strengthen the application of market measures in each step, each stage of the providing public goods and services For areas that the State must provide, it is necessary to apply an economic analysis tool (cost-benefit analysis) to select the lowest-cost methods to “maximize effectiveness” Attaching budgets to outputs and creating forms of rewards - fines based on results achieved 4.2 SOLUTIONS TO COMPLETE THE STATE BUDGET ALLOCATION POLICY TO IMPLEMENT THE TASK OF SOCIO-ECONOMIC DEVELOPMENT OF THE COUNTRY 4.2.1 Complete the bases of state budget allocation 4.2.1.1 Complete bases for allocating development investment expenditures The author argues that the completion of the bases for allocating development investment to overcome the spread investment situation, selecting projects and works to meet the investment objectives according to the socio-economic development plan (medium-term plan ) and annual plan - Implement critical programs and projects, with priority given to investment in concrete programs, suitable to the ability of the state budget to definitely make complete investment and promote efficiency - Prioritize capital for small and medium-sized projects, directly serving the community 24 - Investment capital from the state budget only is allocated for socio-economic infrastructure works without the ability to directly pay back capital The works allocated with capital must be included in the approved planning; have sufficient investment procedures 4.2.1.2 Complete the bases for of regular expenditures allocation - Improve the quality of budget estimates making, deciding and allocating of budget beneficiaries Restructuring regular expenditures of the budget in the most reasonable way, ensuring strict, economic and effectiveness - Strictly comply with the provisions of the Law on Anti-Corruption, the Law on Thrift Practices and Waste Combat and by-law documents; organize effectively implementation of the program of thrift practice, anti-corruption prevention and waste combat - The State should regularly review, amend, supplement and promulgate new documents to adjust some regimes, standards, norms of out-of-date budget spending, which are inconsistent with reality 4.2.2 Develop and apply the medium-term budget framework in state budget allocation Apply a multi-year budget framework, including: annual budget financial plan and medium-term budgetary framework that will partly overcome the shortcomings between the annual financial plan and the current socio-economic plan The application of the 5-year and 3-year medium-term frameworks complies with Article 17, Article 43 of the 2015 State Budget Law, in which defines the overall tax burden and scale of budget deficit and revenue and expenditure forecasts at the aggregate level The annual budget financial planning into the multi-year budget framework will help the Government get a more realistic and rigorous annual budget estimate, because it is set up within the vision of years and years 4.2.3 Innovation of state budget allocation according to output result The allocation of state budget accordign to output result is the activity of budget management based on the access to the output information to help the State implement the allocation of resources in the most effective way In essence, budget allocation according to the output can be viewed as the output management for the budget use activities of public organizations and levels of authorities in public sector Budget allocation according to the output is a long-term strategic allocation system to achieve alteration in the measurement of the performance of state agencies, including public organizations and levels of authorities This method of allocation includes many stages such as setting targets, selecting indicators and work outcomes, linking budgets with the results to be achieved Budget allocation according to the output result is to use the output information in management from the estimates making, approval, allocation, implementation, monitoring, evaluation and budget cycle settlement Studying the content of budget allocation according to the output results, the author assume that the content of budget allocation according to the output results includes: Firstly, clearly identify customers, duties of the State and the public sector Secondly, determine the criteria for assessing the results that the people and customer groups expect Thirdly, setting indicators on the quality and satisfaction of customers and people 25 Fourth, determine the criteria for progress, output objectives, final results, social impacts Fifth, develop the system of reporting, analyzing and improving results 4.2.4 Identify priority programs and objectives in state budget allocation (1) Program identification: The first task of the state budget allocations according to the outputs is to identify programs (2) Program design: programs need to be designed in detail on both two levels: the general plan to implement the program and the annual plan with specific steps These two levels must ensure the logical relationship between the objectives to be achieved, the strategy to achieve the objectives, the activities and the corresponding fund to implement the program (3) Program implementation plan: A master plan and annual plan are required to implement the program The annual plans must match the master plan, the outputs of the annual plan must ensure to achieve the final objectives of the program and the budget for implementation (4) Fund allocation for the program: Based on the objectives and progress (also referred as the connection between the budget and the results, only within a program), it is necessary to determine the fund to achieve objectives of the program (5) Program management: Programs must aim to implement urgent, interdisciplinary and interregional issues The program management should be appropriately decentralized to ministries, branches and localities 4.2.5 Promote decentralization and devolvement in the state budget management On the basis of views and orientations in completing the state budget allocation policy, from the perspective of decentralization and devolvement in the management of the state budget, the thesis argues that the decentralization mechanism should be reviewed to ensure the authority of the budget levels, agencies and organizations using the budget in organizing the implementation and taking responsibility for the assigned objectives and tasks, in the direction of determining specific tasks of each level of government, step by step eleminate the “integrated” budget model, ensure legal status and longterm stability in the operation of government levels 4.2.6 Renovation of state budget allocations for public non-business units The proposed solution of renovating the state budget allocation for public non-business units should firstly agree on the awareness of changing the approach to policy formulation for public service provision based on types of output public services classified by groups: essential services (fully funded by the State); basic services (partially funded by the State); other services/increased services (individual state funding) for appropriate policies Clearly define the functions of the State and create an equal and competitive environment for activities of public service provision The State guarantees the provision of public services through the establishment of a legal environment, strengthening the role of management, inspection and supervision for this activity The State directly provides or ensures resources of public services provision for essential services and basic services 4.2.7 Continue to amend criteria and norms for state budget allocation (after 2020 and vision to 2030) Criteria and norms for state budget allocation are the best bases for distributing resources in a reasonable, objective, fair and effective ways In order to complete the criteria and norms for state budget allocation (after 2020 and vision to 2030), the thesis believes that: 26 Firstly, reviewing and evaluating in details the budget that has been allocated to the sectors over the past time and redefining the sectors and fields allocated by the state budget to appropirate to the market mechanism Secondly, review and improve the system of criteria and norms for state budget allocation to meet the natures and tasks of each sector, branch and each level of budget Population criterion is still the main one (main criterion) in allocating budgets to the localities, however, it is necessary to complete the system of statistical indicators and population projections in details according to age and gender structure to seerve as bases for budget allocation Thirdly, it is necessary to determine the budget resources in each specific period and based on the objectives and orientation of socio-economic development in each period to determine the need of budget spending From the shortcomings of the current criteria and norms for state budget allocation, as mentioned in Chapter 3, proceeding to the allocation of state budget according to the output as the mentioned orientation for renovating the state budget allocation, the author realizes that the completion of criteria and norms for state budget allocation must be directed towards the use of the budget according to the output results, the performance of the tasks by the branches, levels and estimating units (such as determining the percentage of students going to school, the number of people receiving services, the percentage of poor households, the level of security, social order and safety, etc.) Based on the basic requirements mentioned above, the development of criteria and norms for state budget allocation should take the following steps: Step 1: Determine the state budget revenue source Step 2: Determine the medium term budget Step 3: Determine the relative real needs for each level and each branch Step 4: Determine the budget allocation norm for the estimating unit Determining the region coefficients in the state budget allocation, the State determines the standard region with a coefficient of On the basis of the expenditures in the standard zone, the expenditure levels in other regions will be determined in accordance with the region coefficient (For instance: Table 4.10) Table 4.10: Region coefficient Delta (standard area) Midlands and coastal areas Low mountains, remote areas High mountains and islands 2,5 City and urban area 2,5 1,3 *Source: The author’s recommendation based on the norms for state budget allocation in 2016-2020 period Based on regional coefficients, the competent authorities need to adjust the norms for state budget allocation of the standard area (excluding height factors and adding inadequate factors), thereby, determining the norms for state budget allocation of each expenditure area on the basis of the region coefficient For example, Table 4.11 below: 27 Table 4.11: The coefficient of norms for state budget allocation of some sectors Period of 2021 - 2026 Delta Midlands Low High (standard and area) coastal remote and urban areas areas islands area mountains, mountains City and Expenditure for education 1,0 1,15 1,23 1,72 0,85 Expenditure for vocational training 1,0 1,23 1,30 1,80 0,80 Expenditure for health 1,0 1,14 1,28 1,77 0,74 Expenditure for Information culture 1,0 1,12 1,38 1,92 0,91 Expenditure for broadcast 1,0 1,11 1,35 1,80 0,90 *Source: The author’s recommendation based on the norms for state budget allocation in 2016-2020 period 4.2.8 Some complementary solutions Firstly, strengthening organizational structure, improving the capacity and qualifications of financial and state budget managers, training, fostering, professional training for financial and state budget managers, meeting the requirements of renovating the state budget allocation, especially the allocation of state budget based according to the output Secondly, strengthening inspection, monitor and supervision to promptly detect and strictly address violations Determining the main and central point to focus on inspection and examination, especially in areas vulnerable to loss and waste Third, promoting the leadership of the Party and the administration of the State in the state budget allocation Fourthly, strengthening the coordination relationship between finance, planning and investment agencies, state treasuries and relevant agencies in the state budget allocation 4.3 Recommendation to the Party and the State 4.3.1 To National Assembly and National Assembly’s Standing Committee Improve the quality of estimats decision and state budget allocation in a longer time; promulgate the Annual Budget Law to replace the current State Budget Resolution; supplement the provisions of the National Assembly’s authority in determining priorities in state budget allocations Continuously give opinions to supplement and improve the criteria and norms for state budget allocation (after 2020 and vision to 2030) following to the actual situation in accordance with the new period on the basis of completing the decentralization of central state budget management between central and local Strengthen the function of monitoring and proposing budget allocations according to the outputs, associated with medium-term plans; closely monitor the budget allocation process of all levels, branches and estimating units, ensuring proper allocation of regimes, standards and norms to achieve socio-economic development objectives 4.3.2 To the Government Direct the research on innovating the method of estimating the state budget according to the output results, develop the criteria for measuring results Manage state budget according to the output is 28 considered as a tool for the State to focus public resources on the places that bring the highest benefits to the society, help improve public policy and contribute to enhance efficiency and effectiveness of management Direct to improve the system of criteria, norms for budget allocation and spending that are regularly updated, consistent with reality and adapt to differences between regions Set roadmaps and plans to thoroughly overcome the “integration” of budget among levels; assign relevant agencies to improve the process of estimating in accordance with the provisions of the State Budget Law and the actual situation, spend more time discussing budgets to improve the quality of state budget allocation work 4.3.3 To Party Committees, local authorities (People’s Council, People’s Committee) Focus on leading and directing professional agencies to research and develop mechanisms and policies for socio-economic development, associated with strong decentralization in different sectors, make favourable conditions for promoting dynamism and creativity in the process of implementing local socio-economic development strategies Complete the formulation of the principles, criteria and norms for state budget allocation for units using state budget funds at provincial and district levels appropriate to the assigned functions and tasks Criterion, norms for state budget allocation must be widely discussed in sectors, levels and units using the budget before the People’s Committee submits to the People’s Council to decide 4.3.4 To finance agencies at all levels Organize to assess the situation of budget allocations of sectors, levels, needs of fund for urgent tasks that still not having resources, needs of fund for the sector’s growth, on that basis, determine the needs of real spending of branches and fields Collaborate with related sectors (such as Education and Training, Health, Internal Affairs, Ethnic Minorities, Statistics, etc.) to develop criteria, coefficients that convert the cost of using the state budget for objects in the same field based on economic and technical characteristics 4.3.5 For Planning and Investment agencies at all levels Coordinate with financial agencies at all levels to clearly define the objectives, tasks, projects and works to be budget allocated according to the priority order suitable to the capital sources of the state budget; allocate investment capital in the long term, actively invest in divergence; determine criteria and allocation methods as bases for building investment capital allocation norms then submit to the People’s Committee for submission to the People's Council for approval 4.3.6 To the state budget-using units and state budget- estimating units Improve the quality of the estimating at the state budget-using units in the direction that estimation must be closely aligned with the plan and priority objectives of the units The estimates must clarify the tasks that have been completed, have to be cut down and new spending tasks pursuant to the work plan of the unit; proactively develop criteria and methods of budget allocation for affiliated units, ensuring state budget publicity and transparency 29 CONCLUSION The thesis has completed the research objectives and tasks as required to address the following issues: - In terms of theory: systematizing the theoretical issues related to the state budget, the principle of state budget allocation and the policy of state budget allocation, evaluation criteria for allocation state budget policy Studying the theory of the state budget allocation policy as the views, ideologies and actions of the State in allocating resources to address socio-economic objectives The thesis has also examined international experience on state budget allocation to withdraw the necessary lessons and suggest policy for Vietnam - In terms of practice: the thesis has evaluated the real situation of state budget allocation in Vietnam in the past years, especially in the period of 2011-2016 and 2017, thereby drawing the results of the system of criteria, norms for the state budget allocation and the implementation of the state budget allocation policy by means of the legal provisions of the 2002 State Budget Law and the 2015 State Budget Law; assessing the achievements, the causes of limitations and obstacles in implementing the state budget allocation policy in Vietnam The thesis also proposes the views and solutions to complete the state budget allocation policy in Vietnam, especially towards the direction of allocating the state budget according to the output, associated with the medium term budget and financial plan, theerby, revising criteria and norms for state budget allocation after 2020 and vision to 2030 The thesis topic is a large and complex issue, that has to address many interwoven relationships between central and local, between management subjects and management objects, however, because of the object and the scope of the study, the thesis has not studied specific details, especially for budget expenditures The author hopes to have chance to further study in next scientific works Although the author of the thesis has made many attempts to complete the thesis, there are inevitable shortcomings, deficiencies and limitations The author hopes that teachers, scientists, managers and experts who are interested in this issue continue to have advice on scientific foundations, international experience, as well as practical recommendations so that the state budget allocaion policy in Vietnam can be more effectively./ 30 LIST OF THE WORKS OF THE AUTHOR RELATED TO THE THESIS TOPIC Nguyen Minh Tan (2015), New points in the 2015 State Budget Law, Financial Journal (8/2015, No 614), p.35-38 Nguyen Minh Tan (2015), Selection and comments on the Budget Law of some countries in the world, co-authors, reference books, Hong Duc Publishing House Nguyen Minh Tan (2016), Scientific and practical foundations for completing the public financial law system in accordance with the Constitution, member of the Ministry-level scientific project, the Institute of Legislative Studies, the Standing Committee of the National Assembly Nguyêen Minh Tan (2017), Manual for monitoring the state budget, co-authors, reference books, Financial Publishing House Nguyen Minh Tan (2017), Solution to restructure the state budget and public debt in Vietnam, Financial Journal (10/2017, No 666), p.23-26 Nguyen Minh Tan (2018), 100 questions and answers about the 2015 State Budget Law and guiding documents, co-authors, reference books, Financial Publishing House Nguyen Minh Tan (2018), State budget allocation policy: lessons learned from the budget in 2017, Financial Journal (4/2018, No 678), p.39-42 Nguyen Minh Tan (2018), The state budget allocation policy: Current status and trends, Economic Review (6/2018, No.34), Central Economic Committee of the Communist Party of Vietnam ... Vietnam has gradually followed the criteria and norms for allocation pursuant to Decision 139/TTg (2003-2006 period); Decisions 151/TTg and 210/TTg (2007-2010 period); Decisions 59/TTg and 60/TTg... Assembly’s Standing Committee comments and decides to allocate a number of financial and budgetary issues submitted by the Government to the National Assembly’s Standing Committee and the National... case of Vietnam; assess the real status of law application on state budget allocation; make recommendations and solutions to improve the efficiency of state budget allocation in Vietnam Survey