MEDIUM - TERM EXPENDITURE FRAMEWORKS: The Application of Medium-Term Expenditure Framework for Budgeting in Sonla Province of Vietnam
NGUYEN, LAN THI NGOC (2012)
2012
Finanssihallinto ja julkisyhteisöjen laskentatoimi - Financial Administration and Public Sector Accounting
Johtamiskorkeakoulu - School of Management
This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Hyväksymispäivämäärä
2012-05-31
Julkaisun pysyvä osoite on
https://urn.fi/urn:nbn:fi:uta-1-23316
https://urn.fi/urn:nbn:fi:uta-1-23316
Tiivistelmä
In recent years, many developed and developing countries have moved to develop their annual budget process in a strategic medium-term expenditure framework (MTEF). While a common feature of medium-term expenditure approach is the inclusion of revenue forecasts and expenditure estimates for two or three years beyond the current year, medium-term expenditure practices vary substantially between countries in size, degree, forms, and success. In Vietnam, a pilot project of adopting MTEF has been done in the period of 2003 - 2011 in order to find out whether MTEF can be tailored to Vietnam's circumstances and to determine which core elements of MTEF will work best over there. Interestingly, Sonla province is in the process of evaluating how MTEF can be applied for budgeting at provincial level.
This thesis aims to provide a systematic study identifying the necessity, rationality, model and essential factors for applying MTEF in the budget process of Sonla province. The research conducted involved both the collection of secondary data through a literature review and international experiences of MTEF application, and primary data obtained through self-administered questionnaires. The main findings reveal that the application of MTEF for budgeting in Sonla province is necessary and rational. The design and application of MTEF in Sonla province will be carried out consistently and in collaboration with the national MTEF process. Reform of budgeting institutions, ensuring commitment of the provincial leadership, improving capacity of human resources, and developing information systems are main critical factors for successful implementation of MTEF in Sonla province.
Keywords: State budget, public expenditure management, medium-term expenditure framework
This thesis aims to provide a systematic study identifying the necessity, rationality, model and essential factors for applying MTEF in the budget process of Sonla province. The research conducted involved both the collection of secondary data through a literature review and international experiences of MTEF application, and primary data obtained through self-administered questionnaires. The main findings reveal that the application of MTEF for budgeting in Sonla province is necessary and rational. The design and application of MTEF in Sonla province will be carried out consistently and in collaboration with the national MTEF process. Reform of budgeting institutions, ensuring commitment of the provincial leadership, improving capacity of human resources, and developing information systems are main critical factors for successful implementation of MTEF in Sonla province.
Keywords: State budget, public expenditure management, medium-term expenditure framework