Transcript 1. Implementing the State Budget Law with fundamental

Vietnam Budget Reform over 2001-2005
and Intentions over 2006-2010
Content (3 parts):
1.
Fiscal – budget reforms initiatives making important
contribution to economic development of the nation over
2001 - 2005
2.
Achievements of fiscal – budget reform over 2001 –
2005
3.
Fiscal – budget reform intentions over 2006-2010
Initiatiation of fiscal – budget reforms (2001-2005)
1.
Implementing the State Budget Law with fundamental objectives.
2.
Implementing revenue policy reforms
3.
Innovating budget allocation and use
4.
Implementing a tight fiscal deficit policy
5.
Taking lead in international integration
6.
Establishing and implementing policies & mechanisms to speed up
the restructuring, reforms and efficiency improvements in SOE
sector, promoting development of other economic participants.
Initiatiation of fiscal – budget reforms (2001-2005)
1.
Implementing the
objectives:
State
Budget
Law with
fundamental
-
Managing an integrated State budget; taking the leading role of the
central budget, while providing discretion and improving
accountability of local governments: certain levels of reserve and
provision are set for the central and local budgets.
-
Restructuring revenues and expenditure mandates between central
budget and local budget in the direction of providing more revenue
resources for the local governments, thus encouraging them to work
for balanced budget.
-
Reforming budget management and use; conducting administrative
reforms in budget preparation, execution and final account reporting.
Initiatiation of fiscal – budget reforms (2001-2005)
2.
-
3.
-
Implementing revenue policy reforms with the objectives of:
Establishing the tax policy system to ensure equality among all economic
players, in line with the process of international integration.
Developing tax policies for broad ranged tax bases.
Reforming of specific tax policies with amendments and additions of the
VAT law, special consumption tax law, corporate income tax law, and the
ordinance on high income earner taxation,...
Innovating budget allocation and use:
Focusing on investments for infrastructure
Prioritizing budget allocation for education – training, science and
technology, health, environment, with increasing budget for poverty
reduction
Encouraging economic restructuring, especially in agricultural production.
Initiatiation of fiscal – budget reforms (2001-2005)
4.
Implementing a tight fiscal deficit policy:
-
No money issuance or external commercial credit to finance deficit
-
State budget deficit only justified for development investment
-
Tight control of State budget deficit (under 3% of GDP as in
international best practices), with Government debt and national debt at
secured level.
5.
Taking lead in international integration:
-
Implementing international integration commitments in reduction of
import duties
-
Amending and reforming the financial – fiscal mechanisms in ODA,
FDI management, financial market development policies.
Initiatiation of fiscal – budget reforms (2001-2005)
6.
Speeding up SOE restructuring,
efficiency improvement
reform
and
-
Implementing the equitization process in a transparent and public
manner by competitive IPO
-
Integrating the equitization process with the development of capital
market, securities markets; while promoting financial management
reforms in the enterprises.
-
Setting up the equitization fund, redundant worker’s fund to address
the obligations and reward policies for employees,...
Outcomes of the fiscal – budget reofmrs over 2001-2005
1.
National financial position and State budget size improved, with the
domestic saving of 29.4% of GDP
2.
Over 2001 – 2005, State budget revenues increased by 24.1% from the
targets, accounted for 33.5% of GDP (compared to targets of 20-21%).
State budget revenue base became more stable, with domestic revenues
(excluding crude oil) growing stably. State budget revenues was not only
sufficient for recurrent expenditure, but also provided for development
investments and debt services
3.
Over 2001 – 2005, State buget expenditure increased by 21/7% from the
targets, accounted for 25-25% of GDP;
4.
Expenditures were positively restructured, with capital expenditure
accounted for 30.6% of total expenditure (compared to the target of 2526%). Expenditure was focusing on education – training with the
expenditure share increased from 15% in 2000 to 18% in 2005; science and
technology expenditure reached 2%; expenditure for health and social
services in 2005 increased 2.2 – 2.5 times from 2000. Resoures were spared
Outcomes of the fiscal – budget reofmrs over
2001-2005
5.
Budget provision and financial reserves were made to
cope with macro economic adjustments as well as
disasters and epidemics
6.
New financial managent reforms were implemented at
administrative and service delivery units, with increasing
“socialization: in health, education and cultural services...
7.
Fiscal – budget transparency was promoted in accordance
to the State budget law and the 2 new laws: corruption
control law, saving and economic practice law
Fiscal – budget reform intentions over 2006-2010
1.
Budget management policy
-
Total State budget revenues account for 21-22% of GDP, of which taxes and fees
account for 20 - 21% of GDP;
State budget expenditure accounts for 26 - 27% of GDP (compared to best practice of
24- 25%), with a proper balance between recurrent, capital expenditure and debt
services and a robust, positive budget balance.
The tax and fee system will be reformed to ensure equity, unity and comprehensiveness
in the 3 aspects: tax policies, tax administration and consulting, with expansion of the
tax bases, and tax adjustments in line with the international integration commitment.
Distribution policies will be reformed with increasing State budget for human
development, socio-cultural development with reforms in public service delivery,
priority for infrastructure investments in poor areas (irrigation, transport…), providing
health insurance for the poor, textbook and scholarship supports for poor students and
the implementation of the nationa targets for poverty reduction (program No 135).
State budget management will be reformed, with increasing decentralization and
delegation in close link with increasing accountability in fiscal – budget management;
-
-
Fiscal – budget reform intentions over 2006-2010
2.
-
Mobilizing resources for development investments; developing
financial market and financial services market:
Set targets for gross social investment over 2006 – 2010 to be 40% of
GDP
Creating favorable and equal environment to encourage all economic
players, removing all discriminations in tax policies, price policies,
fees and land use policies…
Diversifying resource mobilization for development investments
Improving policies and mechanism to strengthen the insurance
market.
Researching and issuing policies to mobilize resources in the
international financial market.
Fiscal – budget reform intentions over 2006-2010
3.
4.
-
-
Reforming corporate finance management: Completing SOE
restructuring and reforms
Keeping progress of SOE restructuring, reform and efficiency
improvement
Promoting infrastructure investment, expanding foreign investment
attraction;
Supporting SME development;
Managing public assets:
Ensuring tight management, economic and efficient use of public
assets, land and other national resources.
Issuing the State asset management law, reforming public
procurement and promoting public asset management responsibility.
Fiscal – budget reform intentions over 2006-2010
5.
6.
7.
Accelerating international integration in financial sector:
Taking lead in expanding external finance and integration activities
Attracting external resources effectively for development
investments;
Implementing international commitments in taxation and finance
Developing policies and implementing the roadmap of international
market entry
Improving the legal framework in the financial sector to promote
integration;
Increasing national foreign currency reserve; improving external
debt mobilization and management policies.
Financial – budget supervision, surveillance, inspection,
auditing for publicity and transparency: Improving policies in the
areas of accounting, auditing, financial supervision, reporting, and
disclosure of financial – budget information;
Conducting reforms in the administration State apparatus and
modernization of fiscal – budget management technology.