Quản lý ngân sách nhà nước tại tỉnh luang prabang nước CHDCND lào TT TIENG ANH

MINISTRY OF EDUCATION AND TRAINING MINISTRY OF HOME AFFAIRS NATIONAL ACADEMY OF PUBLIC ADMINISTRATION DAYMONE VIRANON STATE BUDGET MANAGEMENT IN LUANG PRABANG PROVINCE, LAO PDR Major

MINISTRY OF EDUCATION AND TRAINING

MINISTRY OF HOME AFFAIRS NATIONAL ACADEMY OF PUBLIC ADMINISTRATION

DAYMONE VIRANON

STATE BUDGET MANAGEMENT IN LUANG

PRABANG PROVINCE, LAO PDR

Major: Public Management Code: 9 34 04 03

SUMMARY OF DOCTORAL DISSERTATION ON

PUBLIC MANAGEMENT

HANOI, 2021

The work was completed at: National Academy of Public Administration

Supervisor: 1 Assoc Prof Truong Quoc Chinh

Address: Doctoral thesis defense room - Meeting room… Building…,

National Academy of Public Administration No 77 - Nguyen Chi Thanh Street - Dong Da District - Hanoi

Time: at ………

The disseration can be found at the National Library of Vietnam or the library of the National Academy of Public Administration

INTRODUCTION

1 Reasons for choosing the research topic

Lao PDR is a country with certain development, achieved a number of achievements, of important socio-economic significance However, in the process of implementing the renovation, the state budget management of Laos is still weak, the local budget is not yet self-sufficient in revenue for expenditures, so it still has to receive subsidies from the central budget; The use of the budget tool in adjusting the macroeconomic targets of the provincial government is somewhat limited

Luang Prabang is a province of Lao PDR that is transforming with the country for socio-economic development Strengthening the management of the state budget, renovating the management of budget revenues and expenditures will create conditions to increase budget revenue and use the national budget more economically and effectively; promote local socio-economic development

In recent years, besides the achievements in local budget management, Luang Prabang also has some limitations and inadequacies

in state budget management The annual budget revenue is not enough to spend, the province must provide a balance subsidy, the issue of strengthening budget management becomes more and more urgent Many agencies participate in the management of the state budget, but the regulations on the authority to decide the budget are not clear among agencies, and there are overlaps The process of state budget management

at provincial level is still heavily formal, and in the process of budget management, there is still a lack of dynamism and creativity Some regulations are still inadequate and have not created favorable conditions for the province to control its budget These limitations have a significant impact on the socio-economic development of the locality, as well as creating loopholes for budget loss

Meanwhile, the theoretical basis for state budget management

in Lao PDR is relatively “thin”, especially in local state budget management Research on the state budget is not lacking, however, the vast majority of these works are researched from the perspective

of specialized economic, there are very few studies of the state budget from the perspective of specialized public management Among the few state budget research works from a specialized public management perspective, they focus on decentralization of state budget management or only go into the management of revenue

or expenditure management, but there is no research on state budget management at provincial level Therefore, the theoretical basis for the provincial state budget is the problem

From the position and role of the provincial state budget for local governments, from the current state of state budget management in Luang Prabang province, there are still many shortcomings, from the theoretical basis of state budget management

at the provincial level which is still “thin”, therefore, the doctoral

candidate chooses the issue of “State budget management in

Luang Prabang province, Lao PDR” as a research topic for his

doctoral disseratation in Public Management

2 The purposes and tasks of the dissertation

2.1 The research purposes

On the basis of supplementing and perfecting the theoretical framework on state budget management; analyzing the reality of state budget management in Luang Prabang province, Lao PDR, the dissertation proposes views, directions and solutions to improve state budget management in Luang Prabang province, Lao PDR, thereby contributing to promote local socio-economic development

2.2 The research tasks

- Overview of researched works related to state budget management

- Synthesize, supplement and complete the theoretical framework on state management for the provincial state budget

- Analysis and assessment of the current state of budget management in Luang Prabang province

- From the local situations, from the point of view of the Lao Party and State, the development direction of the province, the dissertation proposes a system of solutions

3 Object and scope of the research

- The research object of the dissertation is state budget management activities at provincial level

- The dissertation studies the provincial budget management in

Luang Prabang province from 2015 to 2020 with a vision to 2030

4 Research methodology

- The dissertation is researched and deployed on the basis of the dialectical and historical materialism methodology of Marxism-Leninism

- Research methods: analysis, synthesis; inheritance; compare; statistical

5 Scientific hypothesis and research questions

5.1 Scientific hypothesis

In fact, the state budget revenue of Luang Prabang is not high, while the expenditure is quite large There are many reasons, but the main reason is that the state budget management is still limited, leading to the loss or waste of the budget If Luang Prabang's state budget management is completed, the province's state budget will be used more effectively, creating a driving force to promote local socio-economic development

- What is the current state of Luang Prabang's state budget management at the provincial level? What are the results and what are the limitations? The reason why?

- To continue to improve the management of the state budget

at the provincial level, what solutions does Luang Prabang need? On what basis?

6 New contributions of the doctoral dissertation

- The dissertation contributes to perfecting the theoretical framework of state budget management at provincial level; draw some lessons on state budget management and apply it to perfect budget management of Luang Prabang province, Lao PDR

- The dissertation has analyzed and described the whole picture of budget management of Luang Prabang province, Lao PDR; At the same time, a system of solutions has been proposed

to further improve state budget management in Luang Prabang province of Lao PDR

7 Theoretical and practical significances of the dissertation

- The research results of the dissertation will provide scientific evidence and reliable information on issues related to state budget management in a locality of Laos That result has a certain impact on the state budget management practice in Luang Prabang province,

contributing to the good use of local financial resources, improving the state budget management capacity of the authorities at all levels

- The dissertation research results are a reference for scientists

to research and learn about the state budget system, the provincial budget management mechanism in Lao PDR

Chapter 1 LITERATURE REVIEW OF THE RESEARCH WORKS RELATED TO STATE BUDGET MANAGEMENT 1.1 Results of research works

Research works refer to issues related to state budget management, from expenditure to management decentralization The works have achieved many results, contributing to providing innovative solutions, perfecting the state budget management in order to improve the effectiveness and efficiency of the State's management role in the state budget

1.2 Gaps in state budget management need further study

First, the research works only focus on the problem of dividing the scope of management between the central government and the local government in the revenue - expenditure tasks, but have not considered in terms of basis, the division basis associated with the particularity of each locality

Second, some issues about the conditions for local authorities

to manage state budget revenues and expenditures have not been clarified yet

Third, many works are not completely based on the perspective of public management such as studying the management methods and methods of state agencies towards the state budget towards the effectiveness and efficiency of local governments, with Theory of budget management according to outputs, theory of owners and agents, etc

Fourth, there has not been any research work at the doctoral dissertation level that has studied in-depth the state budget management at the provincial level in Luang Prabang province from

an overall perspective

On the basis of reference and inheritance of research results on state budget management of previous works, the dissertation topic sets out the following research directions to be solved:

First, to perfect the theoretical basis for the management of the

state budget from the legal system of the Lao PDR, to clarify the concepts of state budget and state budget management at the provincial level based on the provisions of Laos, the necessity, principles and contents of provincial-level state budget management in localities of the Lao PDR, associated with the specific characteristics of the country's institutions and socio-economic situation

Second, in-depth analysis and assessment of state budget

management in Luang Prabang province based on the gaps indicated

Third, identify the limitations and shortcomings that still exist

in the management of the state budget of Luang Prabang province, point out what are the objective causes, what are the causes of poor management, lack of human resources in the province, what are the causes of the general management mechanism, due to inadequacies

in legal regulations

Fourth, the final aim of the dissertation is to propose a system

of feasible, practical and novel solutions to overcome inadequacies in order to continue to improve state budget management in Luang Prabang province, Lao PDR

Conclusion of chapter 1

Through the synthesis, analysis and evaluation of research works on state budget management, the author has collected results for the research of the dissertation topic Research results of previous

works have created the basis or suggested for the author's dissertation topic new ideas and research directions

Chapter 2 THEORETICAL AND PRACTICAL BASIS FOR

PROVINCIAL-LEVEL STATE BUDGET MANAGEMENT 2.1 General problems about the state budget

2.1.1 The concept of state budget

State budget means all revenues and expenditures of the State which have been decided by a competent state agency and implemented within a year to ensure the performance of the State's functions and tasks

2.1.2 The characteristics of state budget

- The creation and use of the state budget fund has always been associated with the economic and political power of the State and is conducted by the State on the basis of certain laws

- State budget has always been closely associated with State ownership and always contains common and public interests

- State budget is an estimate of revenue and expenditure

- State budget is a major part of the national financial system

- State budget is always associated with class character

2.1.3 The role of state budget

- The state budget is the main tool to directly or indirectly allocate national financial resources, orient production development, form a new economic structure, and promote stable and sustainable economic growth

- State budget is a tool to regulate the market, stabilize prices and control inflation

- State budget is an effective tool of the State to adjust in the field of income, contributing to solving social problems

- State budget for consolidating and strengthening the power of the State apparatus, protecting the country and maintaining security

- State budget inspects national financial activities

2.1.4 State budget system

The state budget system is understood as the totality of budget levels that have an organic relationship with each other in the process

of performing the tasks of revenue and expenditure of each budget level In Lao PDR, the state budget system basically consists of the central budget and the local budget

2.2 Management of state budget at provincial level

2.2.1 The concept and necessity of state budget management

at the provincial level

Provincial-level state budget management is the use of appropriate methods (administrative, economic, educational, etc.) by the provincial government to control state revenues and expenditures already approved by the agency The state has the authority to decide and implement it within a year so that the provincial government can well perform its functions and tasks

- The provincial state budget ensures the State functions of the provincial government to perform the functions and tasks prescribed

2.2.2 Targets of state budget management at provincial level

- Total actual expenditure target

- Total actual revenue target

- Additional budget for local government target

2.2.3 Contents of state budget management at provincial level

- Management of state budget revenues at the provincial level

- Management of state budget expenditure at the provincial level

- Managing the balance of the state budget at the provincial level

- Supervising, inspecting, auditing and handling violations in provincial-level state budget management

2.2.4 Factors affecting the management of state budget at provincial level

- Economic institutions

- Qualifications of public officials and provincial budget management organizations

- Policies to encourage the exploitation of financial resources

- Level of economic development and income level of people

2.3 Experience in state budget management of some provinces at provincial level and reference value for Luang Prabang, Lao PDR

2.3.1 Experience in state budget management of some provinces at the provincial level

- Thai Binh province (Vietnam), divides revenues into 2 groups of administrative units, and divides non-state revenue into 2 targets; division of land use levy revenue into 3 types, in addition, clearly detailing each revenue division in each revenue field State budget expenditures are clearly defined for spending on capital construction investment for socio-economic infrastructure works that are not able to recover capital Commune-level budget expenditures are responsible for spending on transportation, urban construction managed by the commune level, spending on extension of

agriculture, forestry and fishery under the management of the commune, and activities of grassroots Party organizations

- In order to well manage the state budget, Bac Ninh province has streamlined the apparatus, clearly demarcated the functions and tasks of each agency, unit, and level To harmonize the expenditure norm in the total assigned allocation norm, which is required to achieve the persuasive cost norm of each type of work on the list of total resources and the sum of all allocated structures

- Xiangkhouang (Laos) has clearly identified revenue sources and spending tasks of each budget level; strengthening and promoting the role of lower-level authorities in the administration and management of local budgets in the area, the proportion of budget revenue and expenditure in the province is gradually shifting towards increasing the proportion of local budgets for subordinates, and reducing the proportion of local budgets provincial level Besides, the settlement work has gradually come into order with increasingly improved quality

- Oudomxay province (Laos), linking the distribution of the state budget with the mobilization of social resources to meet the requirements of implementing the province's socio-economic goals in the medium term Implement the assignment of full financial autonomy

to business units with income Promote the socialization of business activities in the direction of focusing on social tasks, while mobilizing social resources for development Implement policies to encourage economic sectors to participate in social services

non-2.3.2 Reference value for provincial budget management of Luang Prabang, Lao PDR

- Increase the efficiency of budget collection activities of provincial governments

- Strictly control budget revenues and expenditures, restraining excessive increase in spending demand; It is necessary to give importance to expenditures that stimulate private sector investment and ensure a socially equitable distribution

- In the decentralization of budget management, it is necessary

to ensure the leading role of the central budget, consider the central budget as the national budget, operating on a national scale

- Consider the budget disclosure at all levels

- Applying information technology in state budget management

Conclusion of chapter 2

In this chapter, the dissertation has achieved the following results: overview of general budget issues including concept, role, characteristics and budget system; clarifying a number of theoretical issues on state budget management at provincial level; On the basis

of experience in managing state budget at the provincial level of some provinces, some reference values are drawn for Luang Prabang province of Lao PDR

Chapter 3 THE SITUATION OF STATE BUDGET MANAGEMENT IN

LUANG PRABANG PROVINCE, LAO PDR

3.1 Natural, economic and social conditions of Luang Prabang province - the basis for state budget management activities at the provincial level

3.1.1 Natural conditions

Luang Prabang Province is a province in the North of Laos, including 12 districts (cities) Luang Prabang province has an area of 80% of steep rocky mountains, the forest area accounts for 50% of the province's area Luang Prabang province is rich in natural resources, such as coal mines, copper mines, manganese mines, gold mines, etc

3.1.2 Socio-economic situation

The total labor force of Luang Prabang province is 161,023 people (2018), accounting for 46.44% of the province's total population, of which agricultural workers are 143,858 people, accounting for 91.5%; industry is 3.7%; services is 4.8%; The rest are employed in other occupations

In the period of 2015 - 2019, the economy of Luang Prabang province has achieved a good and continuous growth rate, with an average GDP growth rate of 7% The economic structure has shifted

in line with the trend of gradually increasing the proportion of agriculture - forestry, industry and service sectors

Economic structure of key industry groups in the period 2015-2019

Source: Luang Prabang Statistical Yearbook

3.2 The situation of state budget management at the provincial level in Luang Prabang province

3.2.1 The situation of state budget management agencies at Luang Prabang province

The provincial state budget management of Luang Prabang has a system of participating agencies: People's Council, People's Committee, Department of Planning and Investment, Department of Finance, Provincial State Treasury, Provincial Tax Department

3.2.2 The situation of state budget revenue management at

provincial level

State budget revenue is an important part in the implementation

of the State budget Therefore, revenue collection requires compliance with certain principles The order of implementation of budget revenue estimates for different revenues will have different forms The two revenues that account for a large proportion in the locality are fees, charges and revenues from non-business units

Over the years, the budget revenue targets in the locality have been continuously increased

Table of Luang Prabang State Budget Revenue (unit: million kip)

11,566.44

41,566.86