RECOMMENDATIONS

Therefore, some recommendations to improve the management of the state budget expenditure cycle according to outputs in Vietnam in the coming time are as follows:

Firstly, solutions to improve the quality of state budget expenditure estimation. Expenditure estimates must be based on economic and social tasks, ensuring national defense and security, specific targets and tasks of the plan year, and indicators reflecting the scope of tasks, operational characteristics, and conditions. economic and social conditions of each region. Gradually overcome the situation that the state budget expenditure estimates are mainly based on historical figures, mainly based on the results of the implementation of the state budget estimates of the previous year and adjacent years, not paying much attention to Due to fluctuations in the economic and social situation of each locality, major changes in the state’s economic and financial management policies and regimes, it is not close to the needs of reality, the number of final settlements exceeding the estimate is still large. Studying and amending regulations on the timetable of the estimating process

188 THE THIRD INTERNATIONAL CONFERENCE ON: “FINANCE AND ACCOUNTING FOR THE PROMOTION OF SUSTAINABLE...

in order to improve the quality of the estimating process; Apply a framework for assessing public expenditure and financial accountability to improve the reliability of state budget expenditure estimates. Using the results of estimation according to MTEF to develop annual state budget estimates. It is necessary to study and perfect the allocation and expenditure norms in a direction closer to actual needs. In addition, creating a coordination mechanism between the Finance agency, the Planning and Investment agency and the national target program management agency in making estimates of recurrent expenditures and capital construction investment expenditures. At the same time, enhancing the role of the National Assembly and the People’s Council in deciding the state budget expenditure estimates.

Secondly, improve the quality of state budget expenditure estimates. Expenditure estimates must be based on economic and social tasks, ensuring national defense and security, specific targets and tasks of the plan year, and indicators reflecting the scope of tasks, operational characteristics, and conditions. economic and social conditions of each region. Gradually overcome the situation that the state budget expenditure estimates are mainly based on historical figures, mainly on the results of the implementation of the state budget estimates of the previous year and adjacent years.

Due to fluctuations in the economic and social situation of each locality, major changes in the state’s economic and financial management policies and regimes, so it is not close to the actual needs, the number of settlements exceeds that of the State. estimates are large. Innovate the method of assigning state budget expenditure estimates according to the contract regime. The management of the state budget according to output and results requires agencies and units using the state budget to be responsible for the output and results of spending the allocated state budget. Therefore, in order to specifically tie the responsibility for using the allocated state budget to the realization of the outputs, the quantity and quality of the planned outputs when discussing the necessary state budget estimates. The current method of allocating state budget estimates to agencies and units using state budget must be changed to the contract mechanism between state agencies competent to allocate state budget and agencies. agencies and units using the state budget.

Thirdly, the observance of state budget estimates should be ensured in accordance with the order and procedures prescribed in legal documents on state budget management. For units using the state budget, the allocation of state budget expenditure targets is an important basis for creating material conditions for performing assigned functions and tasks, and is responsible for finding material resources. compensate for its activities. It is necessary to strictly comply with the regulations on the order and procedures of development investment spending. To ensure the order and procedures for the observance of the state budget’s regular expenditure estimates.

Fourthly, the final settlement of state budget expenditures must show compliance in state budget expenditures according to the estimates decided by competent authorities; reports on the effectiveness of state budget expenditures. State budget finalization must show compliance in collecting state budget according to law, spending state budget according to estimates decided by competent authorities; State budget finalization must report the efficiency of state budget revenues and expenditures. This is an important issue because each country’s financial resources are limited;

State budget settlement must be determined within a certain period of time, usually one year (12 months), in Vietnam the state budget year is determined according to the calendar year from January 1 to December 31.

Fifthly, to renovate the state budget expenditure cycle in the direction of improving the powers and responsibilities of agencies and units related to administration and management; enhance the role of inspection and supervision on state budget activities of the National Assembly, provide adequate, timely and accurate state budget activities to the National Assembly, so that the National Assembly can decide on issues related to state budget activities. important for the state budget.

The state budget expenditure process has the participation of many actors. Each entity has different roles in the state budget process. Moreover, state budget expenditure is the use of public resources, so the actors both participate, coordinate with each other, and at the same time, some subjects also perform the function of monitoring other entities. In the coming time, Vietnam should promote the roles, powers and responsibilities of each entity in the state budget expenditure cycle.

Sixthly, to reform the state budget expenditure cycle in the direction of improving the accountability of state budget-using agencies in order to ensure thrift practice, contribute to fighting corruption and improve the efficiency of using state budget. State budget. In order to ensure the renewal of the state budget expenditure cycle in the direction of improving accountability, it is necessary to clearly define the objectives and tasks of the managers and users of the state budget. Decentralization of state budget expenditure should be clearly defined, linking rights with responsibilities. Sanctions for violations in the allocation and use of state budget should be strictly implemented. State budget expenditure justification should be considered as a regular activity in monitoring the use of state budget. Explanations must be made publicly and transparently.

Seventhly, step by step switch to implementing the state budget expenditure cycle in association with the state budget expenditure management method based on the output results.

Output-based state budget preparation includes many stages. It is setting goals, selecting indicators and targeted results, monitoring performance, and analyzing and reporting these results against the set goals. Output-based state budgeting requires State agencies and the Government to establish management information systems related to the allocation and use of financial resources such as outputs, inputs, financing costs and the relationship between outputs and inputs, the effects of these factors on the government’s desired outcomes, and the fit of spending with policy objectives.

5. CONCLUSION

In Vietnam, the promotion of reform of the public sector in general and the management of state budget expenditures in particular has made undeniable contributions such as the State has issued a series of policies on granting autonomy to change the state budget. Newly operated administrative agencies and units providing good public services to the people. However, there are still many inadequacies in the balance between authority and accountability for the outputs of service providers that have been clearly revealed. The renewal of the state budget cycle in general and the state budget expenditure cycle in particular is a complicated process that requires meticulous and thoughtful research and the efforts of not only government agencies and agencies.

It also requires the consensus and determination of all state budget management agencies and beneficiaries so that the state budget can truly become a tool of the State’s macro management, contributing to the development orientation of the State budget. develop production, regulate the market, contribute to stabilizing prices, stabilizing life, ensuring social security... responsibilities of different levels of government in the management of state budget expenditures.

190 THE THIRD INTERNATIONAL CONFERENCE ON: “FINANCE AND ACCOUNTING FOR THE PROMOTION OF SUSTAINABLE...

REFERENCES

1. Duong Dang Chinh, Pham Van Khoan (2010), Textbook of Public Financial Management, Financial Publishing House, Hanoi.

2. Vu Van Cuong (2012)- Deputy Director of Legal Consulting Center - Hanoi Law University with the title “Assessment of the actual situation of preparing, implementing and finalizing the state budget and directions for improvement”

3. Vu Si Cuong (2011) of the policy advisory group, Ministry of Finance: “Relation between the preparation and implementation of the state budget and inflation”

4. PhD. Pham Thi Thu Giang(2011), “Legal Research on Public Finance in Vietnam”, Hanoi Law University

5. Pham Thi Thanh Hai (2011), “Looking back at the planning of Ho Chi Minh City”, www.

hoixaydunghcm.vn

6. Nguyen Van Hau (2013), Renovating the state budget expenditure process in Vietnam today, Ho Chi Minh National Academy of Politics, Hanoi

7. Robert Keith và Allen Schick, “The Federal Budget Process”

8. Martin, Lawrence L, Kettner (1996), “Measuring the Performance of Human Service Programs”

9. Peter J. Morgan and Long Q. Trinh (2016), Fiscal decentralization and local budget deficits in Viet Nam: An empirical Analysis. ADBI Working Paper, No. 613.

10. “Management of the State Budget based on the output results and applicability in Vietnam”

(2008), Labor - Social Publishing House

11. National Assembly (2002), Law on State Budget 2002, Hanoi 12. National Assembly (2015), Law on State Budget 2015, Hanoi.

13. An Tran, Nguyen Trang (2019), “Hanoi raises the level of financial autonomy in public administrative units”, Nhan Dan Newspaper

14. World bank (2000), “What is MTEF”

15. World Bank (2012): Public Financial Management – Performance Evaluation Framework 16. Cao Ngoc Xuyen (2011), Vice Chairman of the Finance and Budget Committee, Standing

Committee of the National Assembly, “Improving the process of deciding the budget of the National Assembly”

17. Some other documents

PhD. Vo Thi Van Khanh¹

Abstract: This paper focuses on the interwoven relationship that exists between Training &education (levels of study) and human resource development & economic growth. Research data on 11 different countries in Southeast Asia is collected from the World Bank data for 60 years from 1961 to 2020. The study aims to assess the role of primary, secondary and tertiaryeducation representingthe quality of human resources and evaluates the contributions of human resources to economic growth. The results show that there is a positive relationship between the proportion of students attending primary and secondary schools and economic growth, and there is a negative relationship between the proportion of students attending university and economic growth. The results show that increasing investment in education at all levels requires appropriate adjustments to develop human resources, thereby creating a positive impact on economic growth.

Keywords: Human resource development, education and training, economic growth.

1. INTRODUCTION

In our modern time, the role of human resources has been determined to be an important factor, beside capital and technology, which has an impact on economic growth. Especially, in the context of the Industrial Revolution 4.0, the human factor has become more important than ever.

The role of human resources in economic growth has been recognized in theories of endogenous growth. Bassanini&Scarpetta (2001) have shown that human resources become a decisive factor for economic growth and poverty reduction. Furthermore, the foundation that helps improve the quality of human resources is the education and training system at all levels. Education is a systematic program of training and instruction organized and provided specifically for young people in schools and colleges as well as higher education levels. It describes the entire human learning process, through which knowledge is imparted, in order to train and develop human resources to feed themselves and develop the country. Education acts as the agent of culture which is the means by which the culture of a particular society is inherited, changed for the better, and preserved and passed on to the next generations of the society.

In addition, Human Resources playan important role in ensuring the success of an organization.

Growth and expansion at the organizational level will eventually become economic growth at the macroeconomic level. Thus, the important role of education in human resource development toward the national growth and development can be clearly seen. In this recognition, each country has set forth its own national educational goals including: inculcating national consciousness and

1 Email: vankhanhhvtc@gmail.com Academy of Finance

192 THE THIRD INTERNATIONAL CONFERENCE ON: “FINANCE AND ACCOUNTING FOR THE PROMOTION OF SUSTAINABLE...

national unity; inculcating the right values and attitudes for the survival of individuals and society;

training the mind in understanding the world around; and the acquisition of appropriate skills and the development of mental, physical and social abilities and capacities as a means for the individuals to live and contribute to the development of society.

With regards to this point of view, Adeniyi (1995) finds that an important aspect of human resource management that is often overlooked today is employee training and development. In addition, in the view of Ejiogu (2001), most education systems should aim to serve recruitment needs and practical requirements. In that context, this study evaluates the impact of different types of training on the quality of human resources, assesses the contribution of human resources to economic growth and the interrelationship between training and education, human resource development and economic growth in VietNam

Recently, this topic has continued to raise eyebrows of researchers. Rahim et al (2021) affirm that human capital development is one of the driving forces for economic growth. In addition, these findings require the relevance of increased investment in human resource development to achieve higher economic growth in the group of 11 countries following the BRIC.

Thus, it can be seen that research on the impact of human capital on economic growth has always been a topic of great interest. Sharing ideas withEjiogu (2001) or Bassanini&Scarpetta (2001), the study explores the impact of the role of human resource development through training levels on economic growth in Southeast Asian countries in order to contribute more empirical evidence on the topic. The structure of the rest of the paper includes: Part 2 presenting the Research Overview; Part 3 presenting experimental results and Part 4 providing Conclusions and recommendations.