The above studies have contributed to creating a theoretical basis for methods of managing state budget expenditures in general and state budget expenditures in the field of construction investment in particular, that is, public investment expenditures.
State budget expenditure in construction investment
State budget expenditure in general and construction investment expenditure in particular play a very important role in stabilizing and growing the economy and solving social problems; however, researchers in the field of public investment have also proven that if public investment management is not effective, it will lead to foreign debt and therefore researchers have analyzed the current state of public investment in a number of countries and proposed the best solutions for public investment management. Here are some studies related to this issue:
To demonstrate the role of public investment in economic growth and the relationship between public investment, foreign debt, and economic growth, the authors Benedict Clements, Rina Bhattacharya, and Toan Quoc Nguyen, have analyzed: “ External Debt, Public Investment, and Growth in Low-Income Countries ” - External debt, public investment and economic growth in low-income countries (2003). In this study, the authors have reviewed theories related to the research problem, proposed growth models, public investment models, and from there quantified and analyzed the impacts through practical evidence from low-income countries (Togo, Benin, Eritrea, Mauritania, Uganda, Bhutan, Ethiopia, Mozambique, Vanuatu, Bolivia, Gambia, The Nepal, Vietnam, Burkina Faso, Ghana, Nicaragua, Yemen, Burundi, Guinea, Niger, Zambia, ...). [77]
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Besides the economic role of public investment, it also has a social role. One of the social roles of public investment is poverty reduction. The article by authors Edward Anderson, Paolo de Renzio and Stephanie Levy: “ The Role of Public Investment in Poverty Reduction: Theories, Evidence and Methods” (2006), has presented theories and evidence on the role of public investment in poverty reduction through demonstrating the effectiveness of public investment in growth, production, poverty and social balance. At the same time, the
The author also provides methods for appraising public investment projects and optimal allocation among regions to achieve social goals. [80]
To evaluate the efficiency of public investment, the article: “ Investing in Public Investment, An Index of Public Investment Efficiency” (February 2011) by the authors Era Babla - Norris, Jim Brumby, Annette Kyobe, Zac Mills, and Chris Papageorgiou - IMF, proposed a new index that covers the entire process of public investment management through four different stages: Project appraisal, project selection, investment implementation, and investment evaluation. The survey was conducted on 71 countries, including 40 low-income countries and 31 middle-income countries. This index allows for the evaluation and comparison of regions and countries with similar policies, especially those where reform efforts in public investment are prioritized. However, this study allows for survey and assessment applications on a national scale, but within the scope of local public investment, it is not eligible for full application (only some contents can be applied).[81]
Learning from the management experience of other countries to have effective solutions for managing public investment, especially infrastructure investment, is very important, so there have been many studies on this issue. The summary of Bernard Myers and Thomas Laursen on “ Public Investment Management in the EU ” (May 10, 2008) summarized all the public investment management experiences of 10 EU member countries from 2000 to 2006, mainly examining the experiences of the UK and Ireland. These are countries with developed economies, however, in the current period, the leading countries in public debt belong to this EU bloc. Therefore, the experience of the predecessors will help Vietnam refer to and choose the optimal management method for itself. [76]
To find a solution for effective allocation of public investment, especially infrastructure investment expenditure, author Angel de la Fuente has an article: “ Second-best redistribution through public investment: a characterization, an empirical test and an application to the case of Spain” (2003). In the article, the author pointed out
The author points out the redistributive role of public investment, proposes an efficient allocation model in infrastructure investment , specifically applied in Spain; and concludes that Spain can increase the efficiency of regional infrastructure investment spending by increasing spending more on rich regions and less on poor regions; at the same time, the author also points out that: his analysis cannot be extrapolated to the entire EU because of its own characteristics.[73]
Referring to the structure of public investment expenditure in the context of limited budget, the article “ Fiscal Austerity and Public Investment ” (2011) by Wolfgang Streeck and Daniel Mertens demonstrated the public investment practices of three countries: the US, Germany and Sweden from 1981 to 2007, the investment of these three countries tended to increase public investment in software, which is investment in education, research and development, family support, and labor market policies. In this study, the authors also pointed out the relationship between public investment and investment in software, in the context of limited finance, how should public investment be implemented to achieve high efficiency, limit public debt and state budget deficit. [89]
Researchers are not only interested in public investment management methods but also interested in evaluating public investment management to find weaknesses in management to have better solutions to increase the efficiency of state budget expenditure. The authors Anand Rajaram, Tuan Minh Le, Nataliya Biletska and Jim Brumby have published an article: “ A Diagnostic Framework for Assessing Public Investment Management”.
– A standard framework for assessing public investment management (2010). This is their product during their work at the World Bank from 2005 to 2007, in the field of research on financial policies for growth and development of countries. The article pointed out 8 basic characteristics of a good public investment system: (1) investment guidance, project development and project preparation; (2) project appraisal; (3) independent overview of project appraisal; (4) project selection and budget; (5) project implementation; (6) project adjustment; (7) facilitating project operations; and
(8) Project evaluation. The article does not aim to provide the best management method for public investment management, but the authors have pointed out the main risks and provided a systematic cycle for public investment management. At the same time, the authors
also developed a standard framework to evaluate each stage in the public investment management cycle. And the ultimate purpose of the article is to promote self-assessment of public investment management by the government and budget-using agencies to find weaknesses, thereby focusing on reforming shortcomings in governance and methods that have a great impact on the efficiency of public investment spending, towards perfecting the management of investment spending from the State budget.[72]
In general, foreign studies have almost provided the entire theoretical and practical basis for analyzing and evaluating the management of state budget expenditures in construction investment, and solutions to manage state budget expenditures in construction investment more effectively. However, the application to assess the current situation and propose solutions to manage state budget expenditures in construction investment in Vietnam or in each locality in Vietnam requires flexible application and certain conditions.
1.2. Domestic research
State budget expenditure in construction investment is a large expenditure of the State budget, therefore, strengthening the management of state budget expenditure in construction investment is very important, and it is even more important when budget resources are in short supply but investment expenditures are required to be effective to promote rapid economic growth and comprehensively solve social problems. Therefore, the issue of state budget expenditure management in construction investment has become a popular research subject in scientific topics such as: master's theses, doctoral theses, scientific research topics at the ministerial level, departments, branches, etc. The research situation related to this content in the last 10 years can be summarized as follows:
Master's thesis of Nguyen The Sau: " Financial management of investment projects using state budget capital in Bac Giang province ", 2006. In the topic, the author has systematized all the general theoretical issues on financial management of investment projects using state budget capital. The general theoretical part has pointed out the factors that affect the financial management of investment projects using state budget capital, assessed the current situation of this work in Bac Giang province. Through the assessment of the current situation, the author has proposed a number of solutions to strengthen the financial management of investment projects using state budget capital in the province. However, in this thesis, the author has not yet proposed the
indicators to evaluate the effectiveness of this management activity, the indicators will be the basis for assessing the current status of project financial management, only then will the solutions proposed be more convincing. The solution part is too general, it does not show that these are solutions applied separately to manage the financial management of investment projects using state budget capital in Bac Giang province.[47]
Master's thesis in economics: " Improving the management of capital expenditure for construction investment from the State budget through the State Treasury " in 2007 by Vu Hong Son, focused on studying theoretical issues on capital expenditure for construction investment and management of capital expenditure for construction investment from the State budget through the State Treasury, analyzing the current situation of capital expenditure management for construction investment from the State budget through the State Treasury, evaluating the advantages and disadvantages of management in this field and proposing solutions to improve the management of capital expenditure for construction investment from the State budget through the State Treasury. The highlights of this thesis have pointed out the limitations in the management of capital expenditure for construction investment from the State budget through the State Treasury: existing in the allocation of plans and transfer of capital for construction investment, existing in the control process, existing in accounting voucher forms, existing in accounting and settlement work, existing in the reporting information regime, existing in the application of information technology and in the organization of the management apparatus. [49]
Same research issue with the Master's thesis in economics: " Improving the management of state budget expenditure for construction investment in Ba Thuoc district, Thanh Hoa province " by author Le Hoang Ba Huyen, 2008. The thesis has systematized the basic theoretical bases on the management of state budget expenditure for construction investment in the locality such as: what is state budget expenditure, concept, characteristics, management principles and management process of state budget expenditure for construction investment in the locality and should clarify the factors affecting the management of state budget expenditure for construction investment in the locality. In the analysis of the current situation, the author has identified the specific characteristics of the socio-economy of Ba Thuoc district, Thanh Hoa province in the implementation of state budget expenditure for construction investment in the district, analyzed the process and situation of implementing state budget expenditure management for construction investment in the district, thereby pointing out the achieved results, limitations and
The causes of the limitations are the basis for proposed solutions. However, the solutions of the Thesis are still fragmented, not yet linked to the process of managing state budget expenditures for construction investment, moreover, it has not thoroughly resolved the causes of weaknesses in this management field, the scope of the study is only at the District level. [24]
Close to the research topic of the thesis, Master's thesis in economics " Public investment management in Binh Dinh province " by author Nguyen Thanh Minh (2011), the thesis has summarized the basic theories of investment and public investment management including: concept, characteristics, role of public investment; principles, content of public investment management and factors affecting public investment, through which the author has analyzed the current status of public investment management in Binh Dinh province, pointed out the limitations and causes of limitations, and proposed solutions to improve public investment management in Binh Dinh province. The strength of the thesis compared to the above theses is that it has ICOR from state budget capital to evaluate the effectiveness of public investment, and has provided a public investment project as an example for analyzing public investment management in Binh Dinh province. However, this thesis only focuses on the study of management according to the investment project process, not on the management according to the state budget cycle. [31]
Regarding the mechanism for managing and using construction investment capital, the doctoral thesis in economics " Innovation of the mechanism for using construction investment capital of the State " by author Tran Van Hong, in 2002, studied the mechanism for managing and using construction investment capital of the State before the Law on State Budget (2002) of Vietnam was born and took effect. The thesis clearly showed us the loopholes of the old management mechanism, thereby pointing out the urgency of needing to innovate the mechanism for managing and using construction investment capital to eliminate subsidies, increase the responsibility of investors, minimize administrative intervention of State agencies, ensure investment efficiency, and increase accountability in state budget management. [22]
In the doctoral thesis: " Financial solutions to improve the efficiency of investment capital for construction from the state budget in Nghe An province " by author Phan Thanh Mao,
2003. In addition to the basic theory of state budget capital management in construction investment, the factors affecting the management of state budget capital in construction investment, the author also studied the experience of other countries on this issue, this is a new point of the thesis compared to the studies in the above master's topics. However, the author only stopped at analyzing the current situation by descriptive statistics method without analyzing the factors affecting the efficiency of state budget capital in construction investment and to what extent, and the indicators reflecting the efficiency of state budget capital use have not been compared to a certain level, or quantified clearly. [29]
Doctoral thesis in economics by author Nguyen Ngoc Hai with the topic: " Improving the mechanism of state budget expenditure for the provision of public goods in Vietnam" , 2008. The thesis summarizes the general theoretical issues on the mechanism of state budget expenditure management for public goods, and at the same time summarizes the method of organizing and managing state budget expenditures to implement the provision of public goods of the State. Based on the scientific arguments mentioned above, the thesis has presented the analysis and assessment of the current situation of state budget expenditure tasks and the state budget management mechanism for the provision of public goods in the period of economic transition in Vietnam in two aspects: achievements and issues that need to be improved, thus the thesis has highlighted the main shortcomings of the current state budget expenditure management mechanism for the provision of public goods. The thesis has contributed solutions to perfect the mechanism of state budget expenditure management for the provision of public goods in a scientific manner because it is based on the following aspects: the basis of the solution, the conditions of application suitable for the process of building a socialist-oriented market economy in Vietnam. However, in terms of content on the macro-management aspect of state budget expenditure for public goods, the thesis has not yet pointed out the underlying cause of the inadequacies in the operation of this mechanism. Due to the wide scope of research, the solution is still lacking in specificity, and the direction is unclear. [21]
Contributing further to this research issue, the PhD thesis in economics: " Innovation in state budget expenditure management in market economy conditions in Vietnam " by
Nguyen Thi Minh, in 2008, systematized all the basic theoretical issues on: State budget expenditure, content of State budget expenditure management, methods of State budget expenditure management, and factors affecting State budget expenditure management, experiences of some countries in State budget expenditure management and drew lessons for Vietnam; assessed the current status of State budget expenditure management in Vietnam, which was mainly considered in the renovation period, especially since the State Budget Law was enacted. Thereby, appropriate solutions were proposed to improve State budget expenditure management in accordance with market economic conditions in Vietnam. However, the theoretical part has some theories on the role of State budget expenditure that are only true for Vietnam's conditions and not true for other countries in general; the foreign experience part, if there are experiences of countries similar to Vietnam, it would be better. If the Thesis mentions more clearly and specifically the difficulties and obstacles that Vietnam must face when implementing the new method of state budget expenditure management as proposed by the Thesis, the persuasiveness of the solutions will be higher. [30]
Another study of the Doctoral Thesis in Economics “ Improving the management of state budget expenditures to promote socio-economic development in Quang Ninh province ” in 2009, by author Tran Van Lam, also clarified the perception of the relationship between growth, development and sustainable development; at the same time, systematized the basic issues of budget expenditures, budget expenditure management to promote socio-economic development; clarified in theory the role of linking budget expenditure planning in particular, state budget expenditure management in general with socio-economic development plans, especially the advantages and disadvantages of the traditional administrative state budget management method and the state budget management method according to the medium-term expenditure framework associated with output results. The thesis clearly showed the current state of budget expenditure management for socio-economic development in Quang Ninh province during the research period. On that basis, propose solutions to improve budget expenditure management to promote socio-economic development in Quang Ninh province in the coming time. Solutions have scientific basis, are synchronous, and are suitable for current conditions in Vietnam. Some solutions have new ideas such as: