Transcript Training - World Bank

Finance in Education
Department of External Finance
Ministry of Finance
Issues
• Perspectives on the development of
education and training
• Finance in education
• New methods to attract donors in
education
Perspectives on Education
According to CPRGS, the aims are to build more equal
and higher quality education for all:
- Renovated educational objectives, curricula and
content in the direction of standardization and being
closer to the regional levels; teaching staff
development; renovated education management and
facilitated school autonomy and ownership
- Encouraged socialization in education development
- Focused equity and facilitated access by the
disadvantaged to education, especially at basic level
- Increased financing for education, and mobilization of
resources from public, private and external sectors
Financial Objectives in Education Development
• Share of State spending on education
reached 6% of GDP in 2005 and will be
7% of GDP by 2010
• Share of education spending out of total
State budget spending reached 18% in
2005 and will be 20% by 2010
• Focused investment into general
education and education for ethnic
minority and disadvantaged areas;
ensured learning opportunities for
children from low-income families.
Implementation Progress
Targets
2001
2002
2003
2004
2005
GDP (billion VND)
484,000
539,000
611,000
700,000
825,000
Total State budget
spending (billion VND)
129,773
147,309
167,720
186,670
220,000
State budget spending on
education
17,628
21,590
26,810
34,421
41,600
Share of education and
training spending out of
GDP (%)
3.01
3.67
4.38
4.9
5.04
Share of education and
training spending out of
total State budget
spending
15.5
15.6
16.2
17.1
18
Implementation Progress (Cont.)
• In 2006: The approved State budget spending
on education and training is 18.6%
(equivalent to approximately 5.21%/GDP).
• In 2007: According to the Instruction No.19
issued by the Prime Minister on the estimated
budget for 2007, it must be ensured that the
State budget spending on education and
training will reach 20% of total budget.
• The above percentage will be maintained
until 2010.
Structure of State Budget Spending on
Education
• Recurrent expenditure: 77%
• Investment expenditure: 17%
• National Targeted Programs: 6%
• From Central budget: 27%
• From local budget: 63%
Division of Expenditure Responsibilities
• Central budget:
- Training (colleges, universities)
- National Targeted Programs
• Local budget:
- General education
New Policies on Finance
It is planned to increase the ownership of nonadministrative units in education sector with a
view to increasing the service quality
• Decree No. 43/2006/ND-CP dated 25 April
2006 on the ownership and accountability of
public non-administrative units in relation to
organization structure, staffing and finance
• Decree No.130/2005/ND-CP dated 17
October 2005 on the assigned autonomy of
State administrative units in relation to
staffing and administration expenditures
New Policies on Finance
•
•
Encouraged investment and mobilization of
resources from all socio-economic components for
the development of education and training.
Encouraged establishment of non-public education,
training and vocational training institutions; training
cooperation and linkages with high quality foreign
institution; establishment of high quality training
institutions with 100% of foreign capital.
Renovated tuition fee structure in the direction of
ensured compensation of recurrent expenditures
and accumulated expenditures for investment and
development.
Management of ODA Capital for
Education and Training
• Improved management and efficient use
of ODA capital for education and
training
• Gradual shift from project-based funding
to budget support through the national
targeted programs for education and
training
E.g: The Targeted Budget Support (TBS)
Program for Education
Thank you