Vietnam Fiscal Expenditure Structure Optimization Research

In structure and institution, Vietnam’s reform and opening help Vietnam market-oriented economy on releasing the shackles, Increasingly active market economy led to changes the structure and efficiency of the financial system. Along with the rapid development of the market economy, the level of financial income in Vietnam has increased annually, state intervention in the economy and the ability to exercise state functions are being further enhanced, so Vietnam is in the rapid development of the change mid-term. However, due to reform of financial system is the changes of economic’s structure, Vietnam’s fiscal expenditure structure can not meet the needs of the long-term development of the national economy under the conditions of market economy, can’t adequately reflect the functions of the government, so resulting a series of social problems. Exploring the root causes of these problems, proposing solutions to these problems are now the main task of Vietnam government and also the purpose of this thesis.Firstly, my study puts the basic operating mechanism among financial expenditure and macroeconomic performance,raising of social welfare’s level, then social equity in order, clearing status and the role of fiscal expenditure, as well as its structure in the located of macroeconomic performance, providing strong theoretical supports for the full text of the analysis commence. On this basis, investigated Vietnam in term2000-2010year fiscal expenditure structure and its social effects by empirical analysis methods, clearly identified status of Vietnam current structure of fiscal expenditure and transfer payments, discovering the main problems of the current fiscal expenditure system in Vietnam as well as its sources. Finally,, in step of comparing the international average of various types of expenditure, clearing the gap between Vietnam financial expenditure structure and world average level, combines with the social problems generated by the structure of fiscal expenditure imbalances of Vietnam, then proposes a targeted policy recommendations and optimization measures, and supply protection measures for the smooth implementation of the system measures, ultimately summarizing a systematic approach to solve the above problems.Results of my study show that, Vietnam’s fiscal expenditure structure have an imbalance in terms of public expenditure, cause such those social problems as brain drain, low level of medical etc; Economic construction expenditure in favor of the industrial sector, let the income disparity increases, rural development stagnates; Administrative expenses rise up, caused the rising of financial system’s burden. In order to fundamentally solve these social problems, firstly need to base on the actual needs of economic and social development in Vietnam, various types of expenditure items to adjust; Thus need to improve the department budget, the government procurement system, and establish a unified centralized treasury payment system, fundamentally improve government control of financial resources; At the same time, there need to improve relevant financial expenditure oversight mechanisms to ensure that the reasonable and security of financial expenditure.