DECENTRALISATION OF STATE BUDGET MANAGEMENT BETWEEN THE CENTRAL GOVERNMENT AND THE LOCAL GOVERNMENT IN VIETNAM AT PRESENT

Abstract

For the last 20 years, Vietnam has made significant progresses regarding the transparence and accountablity in decentralising the state budget management. Besides the successes, the decentralisation of state budget management between the central government and the local government still faces many problems such as the imbalance in the income - expenditure structure, the overlapping between obligatory expenditures of the central government budget and those of the local government budget, the inadequacy in division of many sources of revenue, etc. Thus, Vietnam  needs to improve the policy and law related to decentralisation of state budget management with the direction of making it more transparent, increasing the decentralisation of state budget management between the central government and the local government by changing the source of land related revenues into the source of revenues shared by the central government budget and the local government budget with a separate rate of sharing as well as strengthenning the supervision and assessment of the budget effectivess based on specific quantitative criteria.