Hoàn thiện pháp luật về chi ngân sách nhà nước cho đầu tư công ở Việt Nam hiện nay

Nội dung text: Hoàn thiện pháp luật về chi ngân sách nhà nước cho đầu tư công ở Việt Nam hiện nay

1. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 IMPLEMENTING THE LAW ON STATE BUDGET SPENDING FOR PUBLIC INVESTMENT IN VIETNAM RECENTLY HOÀN THIỆN PHÁP LUẬT VỀ CHI NGÂN SÁCH NHÀ NƯỚC CHO ĐẦU TƯ CÔNG Ở VIỆT NAM HIỆN NAY Bui Ha Hanh Quyen*, Bach Thuy Linh *Academy of Finance, The University of Alabama at Birmingham hanhquyen2606@gmail.com ABSTRACT The public investment plays an important role in creating the material and technical foundation for the country. It is regarded as leverage for some key industries and regions and implementing social welfare policies, ensuring security. Undoubtedly, restructuring public investment is one of the main solutions to improve the quality of growth and competitiveness of the economy in the process of Vietnam's integration, to curb inflation, and to stabilize the macroeconomy. Currently, along with the renovation process in all areas of social life for nearly 20 years, budget management in general and state budget expenditure management in the field of public investment, in particular, have many positive changes. Those alterations contribute to the socio-economic promotion, improve the effectiveness and efficiency of the use of public financial resources. However, due to the fluctuations of reality and international integration that has become more and more extensive, the requirements of management and use of public financial resources are increasing. Disappointedly, Vietnam’s legal system is not been completed and law enforcement has not yet been strictly and thoroughly implemented. Since then, lawmakers are required to consider revising as well as offering solutions to overcome and improve the efficiency of the usage of state budget capital for public investment in Vietnam today. Key words: Effectiveness, state budget spending, public investment. TÓM TẮT Đầu tư công có ý nghĩa quan trọng, đóng vai trò tạo nền tảng vật chất kỹ thuật quan trọng cho đất nước, là đòn bẩy đối với một số ngành và vùng trọng điểm, đồng thời thực hiện các chính sách phúc lợi xã hội, đảm bảo an ninh, quốc phòng. Tái cấu trúc đầu tư công là một trong những giải pháp nâng cao chất lượng tăng trưởng và khả năng cạnh tranh của nền kinh tế trong quá trình hội nhập của Việt Nam, kiềm chế lạm phát, ổn định kinh tế vĩ mô. Hiện nay, cùng với quá trình đổi mới trên tất cả các lĩnh vực của đời sống xã hội trong gần 20 năm, quản lý ngân sách nói chung và quản lý chi ngân sách nhà nước trong lĩnh vực đầu tư công nói riêng có nhiều chuyển biến tích cực, góp phần thúc đẩy kinh tế xã hội, nâng cao hiệu lực, hiệu quả của việc sử dụng nguồn lực tài chính công. Tuy nhiên, trước tình hình biến động của thực tiễn và hội nhập quốc tế diễn ra ngày càng sâu rộng, yêu cầu quản lý sử dụng nguồn lực tài chính công ngày càng cao, hệ thống pháp luật của chúng ta chưa hoàn thiện, công tác thực thi pháp luật chưa đảm bảo tính nghiêm minh, triệt để. Từ đó, đòi hỏi các nhà lập pháp cần xem xét sửa đổi cũng như đưa ra các giải pháp để khắc phục, nâng cao hiệu quả sử dụng nguồn vốn ngân sách nhà nước cho đầu tư công ở Việt Nam hiện nay. Từ khóa: Hiệu quả, chi ngân sách nhà nước, đầu tư công. 1. Introduction It is clear that the public investment is the State's investment in various programs and projects on socio-economic infrastructure construction as well as in the service of socio-economic development. In fact, capital for public investment can come from a variety of sources. It must be precisely determined that state capital is not the only source of public investment. Nevertheless, it is undeniable about its importance to the implementation of public investment programs and projects. Therefore, the State should issue specific laws to help people use effectively the state budget capital in this field. At present, we have 21
2. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 many regulations on public investment. Nonetheless, the fact indicates that the efficiency of using the state budget for these activities is not high. There are many problems and requiring solutions which measures to overcome and improve to minimize loss and waste of state budget sources. The paper focuses on current issues of state budget spending on public investment in Vietnam as well as assessing the effectiveness of this work in practice. It also researches and proposes solutions to improve the law and enhance the implementation of the law on state budget spending for public investment, which is based on the current situation of the law on state budget spending for public investment in Vietnam today. 2. Research methodology During the research, the author has applied a number of general research methods of social sciences and specific methods of law to study. The main methods include analytical methods, general methods, comparative methods, classification methods, etc. The paper uses qualitative research methods in collecting and processing information and data to analyze, compare and synthesize. The way to access data sources is through observation, gathering information from many different sources). Sources of data collected from outside include articles, research papers, annual reports, which are posted on newspapers, magazines, information from websites, annual reports of Vietnam's economy and reputable organizations, etc. 3. Research’s results 3.1. Some theoretical issues on public investment and state budget spending activities for public investment Public investment is seen as the State's investment in different programs and projects on socio- economic infrastructure construction and investment in various programs and projects related to socio- economic development. This is an important part of aggregate demand, which drives aggregate demand through the financial multiplier. As a result, it can not be denied about the important role of public investment in promoting economic growth. Undoubtedly, public investment is an investment activity of the State. Hence, these activities are carried out by the State through competent state agencies. Because the state is a special public political organization, it has all the necessary conditions and advantages to recognize and offer the most appropriate investment orientations and plans to help the economy develop. Therefore, the government is an important subject that must be included in public investment relations. The goal of public investment is to improve the investment environment and facilitate private and foreign investment. In fact, public investment plays an important role in creating material and technical foundation for the country. It is a leverage for some key industries and regions, and supports to implement social welfare policies, ensure security and defense. In reality, the state mainly invests in public works that the private economy does not or has not invested in like commercial areas. It sets making profits as the highest target (i.e. securities, hotels, restaurants). In addition, through public investment activities, the State also attracts more capital from the private sector to co-invest with the state on the principle of public-private combination. Investment capital for public investment activities using State capital. Undoubtedly, capital for public investment can come from a variety of sources. The state budget is used for investing in socio- economic infrastructure projects with low capital recovery, human resource development and environmental protection. It is also used for maintaining public facilities. For projects that can generate revenue but cannot recover enough capital, the state budget will only partially fund the projects. The second source is the state credit granted under preferential conditions from Government funds or from ODA. State credits for priority projects or implemented in the number of different industries. The 22
3. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 government agency who borrows this credit are the investors and they are responsible for paying the interest and principal. In addition to the two main sources above, public investment programs and projects may use capital invested by individuals and private economic organizations. Therefore, it must be precisely stated that state capital is not the only source of public investment. As being analyzed above, public investment is a critical economic activity, promoting economic development. Public investment is very important for many economies, especially developing countries, especially from the perspective of ensuring the basis for sustainable development. In a market economy with a variety of economic sectors and forms of ownership, economic activities, including public investment, are extremely complex and vibrant. The state, with its advantages, conducts public investment management to help ensure that projects achieve the set goals, and limit the risks brought by the market economy. Indeed, the state budget capital used for public investment accounts for the significant part of the total state budget. 3.2. Current situation of state budget spending on public investment in Vietnam today 3.2.1. Assess the current laws on state budget spending in the field of public investment in Vietnam 3.2.1.1. Merits The current laws on state budget spending in the field of public investment in Vietnam are basically appropriate, meet most social requirements, ensure that public investment achieves its purpose. Some outstanding advantages are as follows: Firstly, the provisions of the Law on Public Investment, the State Budget Law and other related legal documents are the legal basis to enhance the efficiency of public investment in all stages, from decentralization of management authority towards the state budget capital. Actually, the sequence of planning procedures, preparation for investment plans, implementation monitoring to project audit, are tight. Secondly, the elaboration, supplementation and delivery of plans are more strictly managed, close to reality, ensure greater transparency, and limit corruption, wastefulness and loss of assets of Government. Thirdly, the provisions on capital arrangement must give priority to the number of important programs and projects, which helps to develop the economy equally in all aspects and urgent projects, etc. Fourthly, the provisions on capital allocation ensure transparency in public investment and the efficiency of using the state budget capital, limit the situation of misuse to waste and loss of state budget capital and still ensure timely allocation of capital for eligible public investment projects. Fifthly, it is reasonable to stipulate the authority to use the budget reserve to support capital- increase projects. For important projects, the capital increase is so high that the reserve capital for medium-term public investment plan cannot meet. Undoubtedly, it is necessary to have support with the budget reserve. Delegating decision-making powers to administrative agencies that are the state management agencies in charge of public investment increases the initiative and ensures the use of budget reserve capital for the right purpose, reasonably and necessarily. Actually, decentralizing the authority to use the budget reserve fund also reduces administrative procedures, ensures project implementation schedule and increases accountability at all levels. Sixthly, allowing administrative agencies at all levels (Government, People's Committee) to advance the next year's budget estimates with public investment projects under their management. Actually, this provision ensures timely response. For projects that need urgent implementation but are in included in the plan, they are not allocated capital or do not have enough capital to implement. Seventhly, there have been separate adjustment regulations for very small-scale public investment projects. Thereby creating a shortened process for these projects, in order to speed up the implementation of the project and open, broaden initiative for local governments, etc. 23
4. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 3.2.1.2. Demerits The law on state budget spending in the field of public investment has created a legal corridor for the development and implementation of public investment programs and projects using state budget capital in Vietnam. However, in the process of research and law enforcement, there are still inadequacies, limitations, as follows: Firstly, regarding the competence to allocate State budget capital in public investment activities in Vietnam, the Law on Public Investment has many binding and unclear provisions on priority arrangement, resulting to the fact that the allocation of capital associated with the ability to balance capital do not meet the project implementation schedule. Hence, the implementation time has to be extended. In addition, there are contradictions in the regulations on conditions for capital allocation to be prepared for medium-term public investment projects: If projects using state budget capital are in the process of elaborating, appraising and deciding on owners. If the project is needed, it is necessary to allocate state budget capital to prepare for investment. However, at the moment the project has not been decided by the competent authorities. Therefore, it cannot allocate that capital to the project. Without the state budget capital to prepare the investment, it is impossible to implement the process of elaborating, appraising and deciding the project guidelines. As a result, the planned capital from the state budget cannot be allocated to public investment programs and projects by using state budget capital. Secondly, there is a conflict between the Law on Public Investment and the State budget law. Specifically, there was no agreement on the duration of the medium-term public investment plan and the 3-year budget and financial plan. In addition, there are contradictions in regulations on the competence to manage public investment projects between state agencies. Thirdly, the Regulation allows extending the disbursement period with the annual public investment plan, creating a psychology of investors who do not focus on implementing the plan right in the year, affecting the investment disbursement. However, it is appraised that the Regulation does not guarantee investment efficiency. At present, there is no specific regulation on specific projects to extend the disbursement period, minimize the case for a massive transfer of capital, have influence on the implementation and quality of investment project, and the use of state budget capital. Fourthly, regarding the competence to adjust public investment projects using state budget capital, ministries and localities are not allowed to proactively decide on the investment priorities under their management in accordance with real conditions. The Ministry of Planning and Investment must request permission from the Ministry of Planning and Investment. This provision reduces the activeness of ministries and localities in managing the assigned capital plan, increasing administrative procedures and reducing the implementation schedule, certain effects on the quality of the work as well as the ability of Disbursement towards the capital plan. Fifthly, in respect to the competence to inspect, and handle violations of public investment activities using the State budget capital in Vietnam. Currently, there is no specific law document on inspection activities in general. The legal system and mechanisms and policies that support the implementation of the inspection process are safe, effective, incomplete and lack of uniformity. In fact, current laws are lack of strong sanctions to deal with violations of law in implementation and management of State budget spending in public investment. 3.2.2. Assess the implementation of the law on state budget spending in the field of public investment in Vietnam today 3.2.2.1. Merits From 2016-2020, implementing the Law on Public Investment, the National Assembly issued Resolution 26 on Medium-term Public Investment Plan for the 2016-2020 period, creating a synchronous 24
5. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 and important legal basis for public investment management. For the first time, there is a breakthrough innovation in fundamentally changing the way of managing, balancing and allocating national financial resources for development investment, shifting from the management mechanism according to the first plan from annual to medium-term plans in association with annual plans. Simultaneously, the government should tighten financial disciplines and financial disciplines in the evaluation and approval of investment policies, project approvals associated with the appraisal of capital sources and the ability to balance the state budget capital, attract capital from various economic sectors. On the other hand, macroeconomic balance and public debt safety must be ensured to be implemented. After nearly 5 years of implementing the Law on Public Investment and Resolution 26 of the National Assembly, with the active initiative of the Government, ministries and local branches, the National Assembly's close supervision, disciplines in Public investment management have been strengthened. Moreover, macro-financial balance has been maintained. Indeed, all levels and sectors from the central to local levels have been more aware of their responsibilities in improving the efficiency of management and use of public investment capital from investment policy approval, approving projects, balancing resources, and allocating capital to implement. The management of public investment has made positive changes. In reality, the making process, allocation and delivery of development investment plans are strictly monitored in a more open and transparent way. Furthermore, the efficiency of public investment has been improved step by step, which helps to reduce outstanding debts in capital construction with strict management of advance capital and contributes to limiting scattered investment, policy decisions and inappropriate investment decisions which are not based on the ability to balance capital. As regards of public investment capital, it has focused on arranging national target programs, important national projects, key projects, connecting and spreading regions, and projects in several sectors and fields that other economic sectors do not want to invest. By 2018, many regional-connected infrastructure projects have been speeded up the construction progress [1], completed, put into operation, and used a number of large constructions [2], creating favorable conditions for the development of economic activities, strengthening regional links, and actively contributing to the country's socio- economic development. According to the Government's Report No. 513 / BC-CP, the estimated GDP target for the period 2016-2018 was 6.57% while the target for the whole period 2016-2020 is 6.5-7%; The average target of total social investment on GDP during 2016-2018 reached 33.5% while the target for the whole 2016-2020 period is 32-34%; The target for health insurance coverage (at the end of the period) is 80%. In reality, 88.5% has been achieved so far, etc. The goal of restructuring and improving the efficiency of public investment has achieved positive initial results, which boosts up the proportion of capital mobilized from economic sectors for development investment. Moreover, the proportion of public investment reduced to 34.5% of total social investment. According to Report No. 506/BC-CP dated October 17, 2018 of the Government, the proportion of state investment capital in the total estimated investment in 2018 was 34.5%. The overall balance of public investment resources in the 2016-2020 period is clearly defined, which creates initiative for the Government, ministries, branches and localities in balancing investment resources from different budgets and mobilizing other sources of capital for the development of investment. Based on the Government's Report No. 513/BC-CP, the proportion of state investment to total social investment in 2017 was 34.8% compared to 36.8% in the period 2015-2017 and 39.9% in 2014. Apparently, the allocation of capital has prioritized disadvantaged areas. The percentage of central budget capital (central budget) with targeted support for disadvantaged localities accounted for nearly 50%. According to Report No. 513/BC-CP of the Government, the Northern Midlands and Mountains region is allocated 23.41%, the North Central and Central Coast regions are allocated 25.54% of the total 25
6. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 central budget capital with targeted assistance for localities. In addition, the Government has focused on housing support for households with meritorious services to revolution. It also has paid attention to tasks of coping with climate change, preventing and fighting against drought in the Central Highlands and Southern Central provinces, saltwater intrusion in the Mekong River Delta provinces, and marine environmental pollution incidents in 4 central provinces. The allocation of medium-term public investment capital in general has basically complied with the principles, criteria, norms and implemented in each order of priority in the allocation of state budget capital in the 2016-2020 period, which contributes gradually to overcome the passive situation, investment in cutting segments like before. Based on the determination of the total maximum medium- term public investment capital in the 2016-2020 period is VND 2,000,000 billion with clear orientations and criteria. It helps to create favorable conditions for ministries, branches and localities; to take initiative in effective allocation, to use priority projects with limit passive situation and unbalanced budget allocations. Interestingly, the allocation of investment capital is more concentrated than before. It has contributed to speed up, put the project into use effectively. Nevertheless, the number of newly started projects has decreased sharply. According to the Report No. 513/BC-CP of the Government, the total number of projects of the medium-term public investment plan is 9,620 projects, only about 50% of the previous period. In particular, the number of projects completed in the period reached 65.4%. In addition, localities have basically handled most of the outstanding debts in the 2016-2020 period and set aside considerable capital to pay advance capital. 3.2.2.2. Demerits In addition to the above achievements, in the process of implementing the law on state budget spending in the field of public investment, there are still some certain shortcomings: Firstly, the allocation of investment capital from the state budget is still scattered. There are large- scale projects, but the capital arrangement is low. Some ministries, central and local state agencies still propose to commence new projects while they have not balanced enough capital to pay debts of capital, construction debts or the allocated capital level is too low and not guaranteed. As a result, the government should make sure to complete the project by following the schedule and on time. The 2018 audit report stated that the capital plan of some ministries, central agencies and many localities has not strictly implemented the Prime Minister's Directive. In fact, it is not close to reality, and not suitable to the ability of the State budget. Moreover, priority has not yet been given to allocate enough capital for completely handling the outstanding debts of capital construction as prescribed. Along with that, there is a situation in which the capital plan has not been detailed yet and fully allocated from the beginning of the year, capital allocation to a number of lower areas or exceeding the prescribed level (Ministry of Agriculture and Rural Development has arranged capital for 10 projects that exceeded the amount of capital in the public investment plan [1]). They allocated when it has not had enough conditions and was not included in the public investment plan. Especially, 24/49 localities audited had agencies that had not arranged the priority in order, etc. In addition, public investment projects have been delayed due to some reasons such as ministries, agencies and localities allocating capital for projects that have not enough procedures. Therefore, the implementation procedures and newspapers in combination with multiple reports has led to the delayed with often and repeated frequency, etc. Apparently, many projects are not eligible but have been allocated capital. It is allocated to hundreds of projects and works without investment decisions or having investment decisions after October 31 of the previous year (including Da Nang City). Danang 141 projects, Binh Dinh province 102 projects, Hai Phong 52 projects, etc.). The allocations for some projects that have not yet based on the medium-term investment plan or the 5-year Socio-Economic Development Plan 2011-2015 (including 26
7. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 Ethnic Committee, Tien Giang Province 108 projects, Ben Tre 24 projects, Hoa Binh 24 projects). Furthermore, there was capital allocation for projects that were not included in the 5-year Agriculture sector development plan from 2011 to 2015 (Ministry of Agriculture and Rural Development has 62 projects, 912 billion dong). In fact, the allocation of capital for new projects was actually not really urgent (Ministry of Construction has 14 projects, VND 120 billion), etc. In 2016, that situation has not been improved. The 2016 State Audit Office of State Audit report showed that: assigning investment capital plan to 967 new projects was equal to 17.44% of the total number of projects assigned; assigning capital plan for 04 high-speed projects of VEC VND 3,866 billion to convert ODA loans from the form of re-lending by the State to the form of direct investment by the State without resolutions approved by the National Assembly, People's Committee of Vietnam, etc. The 2018 Audit Results Summary Report indicated that there was still an existing problem of ministries and localities when they allocated capital plans that was not close to reality, leading to low disbursement rates. Furthermore, they allocate capital when it was not qualified with wrong content of investment capital, did not comply with priority order, did not allocate completely at the beginning of the year [2] Secondly, the advance of capital for public investment programs and projects funded by the state budget to perform contracts have helped contractors, especially contractors with financial difficulties, to accelerate the examination progress. However, some advance capital projects are too high, do not commensurate with the actual construction volume, which affects the management of local budgets and makes it difficult for the recovery of advance capital on local area. This fact results in the situation of outstanding debt. Some projects, despite being urged by the State Treasury, still have a large advance over the years, such as the 700-bed General Hospital project in Nam Dinh province, the emergency migration project for landslides in Phuong Dinh commune (Truc Ninh), the project to upgrade crucial embankments in Nam Dinh province, etc. Thirdly, the progress of disbursement of state budget capital for public investment programs and projects is still behind schedule. According to a report of the Ministry of Finance, in the first 5 months of 2018, capital construction investment disbursement was estimated at VND 94,108 billion, which was equal to 23.5% of the plan assigned by the National Assembly. This ratio, though improved over the same period in 2017, is still behind schedule. By the end of 2017, the disbursement of investment capital from the state budget reached only 83.9% of the yearly plan. In particular, the disbursement of Government bonds was only VND 13,800 billion, which was equal to 38.4% of the year plan. In 2016, the rate of disbursement of investment capital from the state budget only reached 82.5% of the plan assigned by the National Assembly. Actually, the investors are afraid of being inspected, supervised, having responsibility, which leads to ineffective and timely implementation of projects, and delayed disbursement of capital. Fourthly, the actual implementation of public investment projects has not been guaranteed. Many investors offered small projects with little capital to be approved for investment, then adjusted to increase capital. Typically, the project to dredge and build embankments to protect the landscape of Sao Khe river (Ninh Binh) "capital" 36 times, from 72 billion to 2,595 billion; The Day River dredging project (also of Ninh Binh) increased its capital from VND 2,078 billion to VND 9,720 billion (an increase of more than VND 7,000 billion) [4]. The units are still confused in using the contingency capital to handle projects with capital increase or urgent projects The efficiency of distribution and use of national financial resources is still limited with wastefulness and inefficiency and are slowly overcome. Indeed, there is still a new policy when no resources are available. Estimated work is not close to reality. In addition, the observance of the Law on Public Investment still reveals not seriously. Many public investment projects are still in progress, with asynchronous investment, low efficiency and great amount of waste, such as the Ho Chi Minh Road project in Nam Can - Dat Mui area in Ca Mau province. They have been delayed for 6 years, the mechanical development project transport infrastructure in the Mekong Delta has been delayed for 3 years and the Central General Hospital project has been delayed for 5 years, etc. 27
8. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 Some projects using the state budget are wasteful and ineffective, such as the Yen Vien - Pha Lai - Ha Long - Cai Lan railway project started in 2005 with a total investment of 1,510 billion Dong so far. The Nhon - Hanoi Railway Station project was started in 2006 with a total initial investment of VND 18,408 billion. However, after many adjustments, the total investment increased to VND 36,000 billion and the finishing time has not been fixed [3]. In reality, the acceleration of important national projects, key projects have not met the requirements that were set out. A number of important national projects like investment in the construction of a number of high-speed road sections on the North-South eastern route in the 2017-2020 period, Long Thanh International Airport; have been allocated capital by the National Assembly. Nonetheless, the implementation progress is slow. Some projects have to adjust the total investment largely, which affects the balance of resources and investment efficiency. Fifthly, examination, inspection and handling of violations of public investment activities funded by the state budget capital in Vietnam. In fact, the inspection and examination of public investment expenditure management process from the state budget has not been executed thoroughly. The conduct of inspections on low number of works/projects has not been detected in time. Although there has been a strong decentralization in the mechanism of investment capital management, the reporting and examination regimes in some stages has not been adequately adjusted. Therefore, the statistical, summarizing and evaluating activities meet a lot of difficulties. The inspection mechanism for decentralizing state budget management in the field of public investment has not been properly focused. The examination, inspection and audit by state agencies are also infrequent and discontinuous. Additionally, the effectiveness of supervision is low, etc. In fact, there have been many violations in public investment activities funded by the state budget. However, there has been no timely resolution and remediation. The situation of wastefulness, loss and dispersal of state budget capital in public investment is still complicated and has not been completely solved. 3.2.3. Reasons Disadvantages still exist in the state budget spending activities in the field of public investment stemming from the number of reasons: Firstly, the law on state budget spending in public investment has not been yet completed. Policymaking and promulgation of legal documents are sometimes flawed. In the process of policy formulation, the participation of subjects is not active, and the results are not effective. Therefore, policies and laws have been issued in some cases that are not suitable to reality and still have many existing problems. On the other hand, the nature of public investment and state budget spending on public investment are difficult legal issues, including many internal contents. Therefore, lawmakers need a lot of time to study, consider and grasp the real situation of Vietnam, so that they can make appropriate regulations. Nevertheless, time is not enough because of the requirements of the economy based on the world trend, which requires lawmakers to quickly establish a legal corridor for the implementation of public investment activities. Disappointedly, it is impossible to avoid certain existing problems in legal documents. Secondly, the implementation of the law on state budget spending in public investment. The implementation of the law on state budget spending in the field of public investment does not ensure the principles, especially the principles of publicity, transparency and fairness in the law implementation process. 28
9. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 Public investment has not focused on investment efficiency and cost savings. There is currently no mechanism to create pressure on investors and contractors to reduce public investment costs. Therefore, public investment projects often have high costs and low efficiency. The high cost of public investment is creating a burden on the economy when the benefits from public investment projects are not enough to offset the costs of using public investment works, especially for public investment projects using state budget capital. In reality, this situation leads to serious loss and waste to the state budget. In fact, management capacity of relevant competent individuals and organizations is not effective. Meanwhile, the decentralization of state budget management in public investment is too thorough. The positive aspect is the strengthening of autonomy and self-responsibility mechanism for governments at all levels. Nevertheless, its drawback is that investors are afraid of responsibility and afraid of inspection. Hence, they have not tried their best to implement the assigned public investment programs and projects. Moreover, the reliance on state budget investment is still very heavy. Ministries and localities are less proactive and creative in mobilizing other capital sources such as foreign investment and private investment in developing infrastructure works. The orientation and regulation of the construction market are weak with the use of unreasonable resources, many inaccurate investment decisions. Furthermore, the assessment of financial and economic efficiency is procedural, etc. The mechanism of inspection and supervision of the state budget decentralization in the field of public investment has not been given appropriate attention. 3.3. Some solutions to enhance the efficiency of state budget spending on public investment Originating from the existing problems in the legal system as well as inadequacies in the process of implementing the law on state budget spending in the field of public investment, the author offers two main solutions: * To implement the law on state budget spending in the field of public investment, there are some specific solutions such as: Firstly, ensure publicity and transparency in management and use of state budget capital in the field of public investment. In order to assure the limit of wastefulness and loss of state budget capital in the implementation of public investment programs and projects, it is necessary to specify in detail the powers and responsibilities of agencies, organizations and individuals in all stages related to the management and use of public investment. It specifies the rights and responsibilities of the heads of organizations and agencies related to the management and use of public investment. This is also one of the measures to ensure the openness and transparency in management and use of public investment. Besides, it is recommended to publicize the priority of budget among localities in budget allocation. In addition, the government should focus on public and transparent regulations of public investment in a specific document to ensure that the process is applied uniformly for avoiding conflicts in regulation among laws. Moreover, the allocation of state budget capital for public investment activities must also be specified and public in order to limit the situation that localities seek to "mobilize" to receive more budget allocations. Secondly, it is necessary to strictly regulate the activities of transferring budget sources to the next year of public investment projects. Accordingly, the source can only be transferred to the next year if it is absolutely necessary and must be approved by the Government. As for all remaining cases, if it is not disbursed in the financial year as planned, it will be cut off. Accordingly, specific provisions on conditions and criteria to be transferred should be specified, as well as the time limit for prolonging the implementation and disbursement of capital. This will avoid the psychological dependence of investors, which forces relevant individuals and organizations to be responsible for fulfilling their tasks according to the assigned schedule on time, ensuring the efficient use of capital from the State budget and the principle of equity in capital allocation with other public investment projects. 29
10. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 Thirdly, it is necessary to change the regulation to advance the capital only when the principal has received the advance guarantee from the credit institution with the similar value of that advance. Particularly for construction contracts, if there is ground clearance, the advance payment is only made when there is a ground clearance plan. This provision is to limit the debt of advance capital in public investment, avoid loss of state budget capital and ensure the efficiency and quality of investment. Fourthly, complete the legal provisions on examination, inspection and handling of violations of public investment activities funded by the state budget. * Strengthening the implementation of the law on decentralization of state budget management on public investment, some specific solutions such as: Firstly, strengthen inspection and examination with State budget spending activities in the field of public investment. Moreover, it is suggested the overnment should strengthen the inspection and inspection of discipline’s observance and discipline in public investment management, focus on weaknesses, negative occurrence, carry out detection and clarification with strict and definitive handling cases of violations of the law on public investment plans that have been decided by the National Assembly, the Government and competent authorities. The government should strengthen the review to ensure that the programs and projects arranged in the annual and medium-term public investment plan must have all investment procedures prescribed by the Law on Public Investment; For medium-term investment plans, programs and projects must be decided by investment authorities with clearly stating objectives, sizes, capital sources and balancing capital sources for implementation. For annual public investment plans, programs and projects must have investment decisions decided by competent authorities. All levels and branches need to strengthen resolute measures to immediately overcome the situation of sketchy preparation and the decision on investment policy in a sensible, formal, wasteful, wasteful and inefficient manner. Moreover, the government should resolutely not allocate capital for projects that do not fully comply with investment procedures and do not approve projects if they cannot identify funding sources for new investment. Secondly, building a database of public investment and application of information technology in public investment management and using state budget capital are suggested. In fact, the 4th industrial revolution is taking place strongly and has profound impacts on all aspects of socio-economic life in order to link public investment management activities with the process of building the electronic Government. It is necessary to establish a database of public investment and management systems. Indeed, managing public investment through the application of information technology, building a national database will help serve connection, share, explore and use, especially for supervision, monitoring, evaluation, examining public investment activities. As a result, the current administrative procedures for project reporting and evaluation will be significantly reduced. The implementation of this system will facilitate technicians to reduce the time and effort of human resources to carry out reporting forms, to update, provide data and reports at the request of the National Assembly, Government. In addition, the updated and publicized database system will increase the transparency and accountability in state budget management in public investment, which contributes to improve the efficiency of using the state budget capital for various programs and public investment project. Thirdly, the government should also strengthen training, retraining and promote legal scientific research related to the use of state budget capital for public investment projects, create comfortable conditions for researchers and law makers to access the public investment database system in order to have a comprehensive view, and make the most accurate judgment, propose legal regulations appropriate to Vietnam, and overcome shortcomings that still exist these days. In addition, it is also necessary to strengthen information dissemination and legal education, raise the level of community knowledge about public investment law. Since then, the implementation’s quality of citizen inspection and supervision for public investment activities in general and investment programs, projects funded by the state budget in particular should be improved. 30
11. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2019 ICYREB 2019 CONCLUSION Undoubtedly, public investment has a significant influence on economic growth. Therefore, not only Vietnam, almost all countries in the world are focusing on investing in this activity. However, in Vietnam, public investment activities using state budget capital have not really achieved expected results. The paper has approached and presented a number of theoretical issues on state budget spending in public investment, from which it scrutinized the real situation and assessed the advantages/ disadvantages of state budget spending in the field of public investment in Vietnam today. After that, the author proposes two main solutions and some specific solutions in each group to overcome, limit inadequacies, and improve the efficiency of state budget spending in the field of public investment in Vietnam currently. Group of solutions to improve the law on decentralization of state budget management in the field of public investment are illustrated below. There are some specific solutions such as: 1. Ensuring the openness and transparency in management and use of state budget capital in the field of public investment. 2. Amending regulations on capital advance, transferring budget to next year with public investment projects, limiting the dependence of investors and related entities. 3. Completing the law provisions on examination, inspection and handling violations of public investment activities funded by the state budget capital. Group of solutions to strengthen the implementation of the law on decentralization of state budget management on public investment, some specific solutions such as: 1. Strengthening inspection and examination with decentralized activities of state budget management in the field of public investment. 2. Building a database on public investment and application of information technology in public investment management using state budget capital. 3. Improving the qualifications of state officials, intensifying the propagation and education to citizens about public investment. REFERENCES [1] BOT Pháp Vân - Cầu Giẽ (period 2); Bến Lức - Long Thành, Trung Lương - Mỹ Thuận Highway [2] Đà Nẵng - Quảng Ngãi, Hạ Long - Hải Phòng highway and Bạch Đằng Bridge, etc. [3] [4] 3455122.html. [5] kinh-te-viet-nam.aspx. [6] Law on Public Investment 2014. [7] Law on State budget 2015. [8] Report no. 506/BC-CP ngày 17/10/2018 of the government. [9] Summary report on Auditing results 2018, p.19. [10] Summary report on Auditing results 2018, tr21-20. 31