Review on Government Budget and Some Recommendations - Situation of Vietnam

Vo Thi Phuong Lan^1,

¹Department of Public Finance, Academy of Finance, Hanoi, Vietnam

Cite this paper:
Vo Thi Phuong Lan. Review on Government Budget and Some Recommendations - Situation of Vietnam. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2021; 9(1):1-6. doi: 10.12691/jbe-9-1-1

Abstract

The rate of government budget revenue has tended to decrease in recent years because of the policies of tax exemption, relaxation and reduction after 2012 and the annual inflation rate was lower in the 2012 period compared to the 2008 period - 2011 caused the revenue growth rate of some taxes dependent on inflation to decrease. Discipline of government budget expenditure still had some limitations when, for many consecutive years, government budget expenditures were actually higher than estimated. Government budget deficit had been high for many years and was higher than the original estimate, leading to a tendency to increase public debt per GDP and peaked in 2016 at 63.7% of GDP. Government budget revenue in the first 9 months of 2020 decreased by 11.5% compared to the same period in 2019, reaching 975.3 trillion VND, as 64.5% of the estimation. In which, the central budget was estimated at 60.4% of the estimation, the local budget was estimated at 69.8% of the estimate. Domestic revenue in 9 months was at the lowest level compared to the same period in some recent years. This paper gave an assessment of the current government budget revenue, expenditure, overspending situation and public debt and from there on, some recommendations for Vietnam were proposed.

Keywords:
government budget government budget expenditure government budget revenue Vietnam

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]	Abdullah, H., The Effect of Budget Clarity, Accounting Control, and Reporting Systems on the Performance Accountability of Government Agencies in Districts and Cities in the Special Region of Yogyakarta. Thesis. UGM Postgraduate Program: Yogyakarta. 2004.
[2]	Collins F., “The Interaction of Budget Characteristics and Personality Variable with Budgetary Response Attitude”, The Accounting Review. pp. 324-335. 1978.
[3]	Govindarajan, V., “Impact of Participation in the Budgetary Process on Managerial Attitudes and Performance”, Universalistic and Contingenci Perspective. Sciences 17. pp. 496-516. 1986.
[4]	Lowe, A. E. & Shaw, R. W., “An Analysis of Managerial Biasing: Evidence from a Company's Budgeting Process”, Journal of Management Studies. pp. 304-315. 1968.
[5]	Merchant Kenneth A., “Budgeting and Propercity to Creat Budgetary Slack”, Accounting, Organization, and Society. Vol 10. pp. 201-210. 1986.
[6]	Onsi M., “Factor Analysis of Behavioral Variables Affecting Budgetary Slack”. The Accounting Review. pp. 535-548. 1973.
[7]	Vietnamese decision No.437/QD on March 30, 2020.
[8]	Vietnamese decision No.15/2020/QD-TTG, April 24, 2020.
[9]	Vietnamese decision No.908/QD-TTG.
[10]	Vietnamese government's resolution No.37/NQ-CP of March 29, 2020.
[11]	Vietnamese government's resolution No.42/NQ-CP of April 9, 2020.
[12]	Vietnamese law on government budget, 2015.
[13]	Young, S. M, “Participative Budgeting: The Effect of Risk Aversion and Asymetric Informaton on Budgetary Slack”. Journal of Accounting Research. Autumn 23. pp. 829-842. 1985.
[14]	Yuwono, "The Effect of Organizational Commitment and Environmental Uncertainty on the Relationship Between Budget Participation and Budgetary Slack". Journal of Business and Accounting. pp. 12-26. 1998.