2005年-世界发展银行全球_Vietnam___Managing_Public_Expenditure_for_Poverty_Reduction_and_Growth_Public_Expenditure_Review_and_Integrated_Fiduciary_Assessment_Volume_1_Cross_Sectoral_Issues_190页_13mb

Summary of Report No. 30035-VN: Vietnam - Managing Public Expenditure for Poverty Reduction and Growth

Core Content

This report, Public Expenditure Review and Integrated Fiduciary Assessment (PER-IFA), was commissioned by the Prime Minister of Vietnam and jointly prepared by the Government of Vietnam, the World Bank, and the Like Minded Group of Donors (LMDG). It aims to evaluate the role of public expenditure in poverty reduction and economic growth, and to identify areas for improvement in resource allocation and management.

Main Objectives

• Review the contribution of public expenditure to poverty reduction and growth in Vietnam.
• Assess the effectiveness of fiscal management and public expenditure strategies.
• Identify priorities and actions for improving the efficiency and equity of public spending.

Key Findings and Recommendations

1. Fiscal Trends and Sustainability

• Fiscal Performance: Vietnam has demonstrated fiscal prudence with relatively small budget deficits, manageable debt levels, and a sustainable share of public spending in GDP.
• Positive Trends: Revenue collection and expenditure outturns have been positive, contributing to a sustainable fiscal balance.
• Threats to Sustainability: The report highlights the need to:
  • Restrict off-budget bond issuance and channel all government borrowing through the budget.
  • Resolve current expenditure arrears, particularly in the transport and agriculture sectors.
  • Strengthen fiscal risk monitoring and management, especially through the Development Assistance Fund (DAF).
  • Implement a realistic and sustainable Medium-Term Fiscal Framework (MTFF) as part of every budget cycle.

2. Composition of Public Expenditure

• Growth: Between 1998 and 2003, total government spending increased at an average annual rate of 16%.
• Sectoral Shifts: The shares of capital spending in education and science and technology have increased significantly.
• Challenges:
  • Non-wage operations and maintenance expenditure fell to 17% of total spending by 2002.
  • Capital expenditure rose to over 40% of total spending.
• Recommendations:
  • Address the imminent maintenance crisis.
  • Improve the balance between capital and recurrent spending.
  • Increase recurrent expenditure's share of the budget with integrated planning for public pay and employment.

3. Institutions for Public Expenditure Management

• Institutional Strengthening: Vietnam has improved its budget planning and execution institutions over the past decade.
• Key Reforms: The 2002 State Budget Law introduced major reforms in decentralization, administrative reforms, and transparency.
• Recommendations:
  • Strengthen collaboration between the Ministry of Planning and Investment (MPI) and the Ministry of Finance (MOF) in preparing MTEFs.
  • Enhance the role of MPI in guiding the Socio-Economic Development Plan (SEDP).
  • Accelerate the implementation of pilot MTEFs in four sectors and provinces.
  • Strengthen links between performance indicators and budgetary decisions.
  • Ensure direct access to Treasury data for MPI, sector ministries, and provinces through the successful implementation of TABMIS.

4. Financial Accountability and Transparency

• Progress: Vietnam has made significant steps in improving financial accountability and transparency.
• Challenges:
  • The State Audit of Vietnam (SAV) needs to be made independent.
  • Audit reports should be made publicly available.
  • Roles and responsibilities of audit and inspection functions need rationalization.
• Recommendations:
  • Ensure independence for SAV.
  • Make audit reports public.
  • Rationalize the roles of audit and inspection functions.
  • Implement monitoring measures to ensure compliance with fiscal transparency and reporting regulations.
  • Conduct a corruption diagnostic and follow-up actions.

5. Decentralization to Sub-National Government

• Decentralization Progress: The share of sub-national governments in total expenditure increased from 26% in 1992 to 48% in 2002.
• Reforms: The 2002 State Budget Law improved the management of decentralization by clarifying roles and responsibilities and granting new powers to provincial councils.
• Recommendations:
  • Monitor and evaluate the impacts of decentralization on public service delivery.
  • Consider specifying revenue and expenditure assignments for districts and communes.
  • Introduce a full formula-driven equalization grant system.
  • Strengthen the conditional grants system.
  • Include all provincial bond issuances in the State Budget.

6. Delegation to Spending Units

• Delegation Trends: Increased delegation to spending units is a key development in Vietnam's public expenditure management.
• Types of Delegation:
  • Administrative Units (under Decision 192/2001).
  • Service Delivery Units (under Decree 10/2002).
• Impact: Delegation has promoted cost reduction and service innovation in some units.
• Recommendations:
  • Maintain the pilot status of Decision 192 and use the "citizen report card" method to monitor its impact.
  • Tighten controls on salary and remuneration flexibility for managers.
  • Develop mechanisms to ensure access to essential social services for the poor.
  • Conduct continuous reviews of Decree 10 using the "citizen report card" approach.
  • Tie state budget resources to the "purchase" of specific public goods and services for the poor.

7. Public Investment Management

• Importance: Public investment is a critical component of public expenditure management, with State Budget-financed investment now accounting for about 40% of total State Budget.
• Capacity Building: The Ministry of Planning and Investment (MPI) has improved its capacity to manage public investment over the past decade.
• Recommendations:
  • Conduct a strategic review of responsibility allocation between government tiers.
  • Develop and implement an investment planning manual and standard project registers.
  • Integrate recurrent cost analysis into investment selection.
  • Use the MTEF approach to ensure consistency between recurrent and capital costs.

8. Public Procurement Management

• Procurement Growth: The value of procurement funded through the State Budget more than doubled from US$2.0 billion to US$4.9 billion between 1999 and 2003.
• Key Issues:
  • Procurement reforms are ongoing.
  • There is a need for a more transparent and fair process.
• Recommendations:
  • Develop and implement a monitoring framework for procurement.
  • Use the "citizen report card" approach to evaluate procurement impact.
  • Improve procurement specifications to ensure quality without bias.
  • Strengthen the complaint system and transitional arrangements for procurement.

Supporting Information

• The report includes detailed appendices with data on implementation progress, expenditure composition, and revenue sources.
• It also contains a series of boxes with case studies and examples, such as the implementation of the MTEF in the education sector, the role of TABMIS, and best practices in procurement.

Conclusion

The report emphasizes the importance of public expenditure in poverty reduction and growth and calls for continued reform in fiscal management, resource allocation, and institutional capacity. It advocates for greater transparency, accountability, and efficiency in public spending, with a focus on equitable service delivery and sustainable development.