Vietnam ranks 68th in budget transparency

Illustrative image (Source: VNA)

Hanoi (VNA) – The International Budget Partnership (IBP) has released its Open Budget Survey (OBS) 2021, showing that Vietnam rank 68th out of the 120 countries in budget transparency, up nine places on 2019 and 23 from 2017.

The country gained six points in all three components – Transparency, Public Participation and Budget Oversight – compared to 2019.

The country scored 44 out of the maximum of 100 in Transparency, and 80 in Budget Oversight last year. The score for Public Participation was 17, higher than the global average of 14.

According to the Ministry of Finance, the OBS2021 results show Vietnam’s ongoing efforts to improve budget transparency in recent years. The country has been striving to adopt good international practices, such as by releasing a three-year national financial and budget plan and making citizen budget reports more comprehensible to the public.

The country has also provided its citizens with easier access to financial and budget information to help them understand and participate in building and monitoring budget plans.

The ministry collected opinions from people through seminars organized by the Center for Development and Integration (CDI) on the draft budget estimate. Through such events, the ministry provides information and receives valuable comments from scientists, organizations and individuals, which helps complete the state budget estimate for submission to the National Assembly for approval.

In 2020, the Ministry of Finance operated an open budget portal at https://ckns.mof.gov.vn to provide individuals, businesses, researchers, and local and international organisations, with useful data and information on public finances, thereby enhancing social accountability and the effective use of State budget funds.

Built based on advanced models from around the world and Vietnam’s requirements for openness and transparency in public finances, it looks to improve efficiencies in the distribution, management, and utilisation of public resources.

It will also help the Ministry of Finance compile reports on open budgets in a faster, more accurate manner and help keep a close watch on budget reports from ministries, State agencies, and localities.

In addition, the ministry said that in the future, it will continue to do a good job of publicizing the state budget and guide localities, ministries and sectors to implement budget publicity in accordance with the Law on State Budget, as well as inspect and supervise their performance.

To create the best conditions for people to access and use state budget information, the portal will be upgraded and perfected toward a scientific arrangement of data.

The Ministry of Finance is committed to cooperating with international organizations and civil society organizations in researching, amending and supplementing legal regulations on budget publicity and transparency, as well as sharing and exchanging information and promoting communications among people of all strata to improve their understanding and attract their attention.

According to the OBS2021 report, the Vietnamese Ministry of Finance has established public consultations in budget formulation but, to further strengthen public participation in the budget process, should also prioritize the following actions; piloting mechanisms to monitor budget implementation and engaging with vulnerable and underrepresented communities, directly or through civil society organizations representing them.

The National Assembly of Vietnam should also prioritize allowing members of the public or any civil society organization to testify during its hearings on the budget proposal, prior to its approval and allowing members of the public or civil society organizations to testify during its hearings on the Audit Report.

Vietnam's State Audit Office needs to establish formal mechanisms for the public to assist in developing its audit programme and contributing to relevant audit investigations in order to improve public participation in the budget process.

The OBS is a global, independent, comparative and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information; formal opportunities for the public to participate in the national budget process; and the role of budget oversight institutions, such as legislatures and national audit offices, in the budget process.

First conducted in 2006, the survey helps local civil societies assess and confer with their governments on the reporting and use of public funds. This is the 8th edition of the OBS and covers 120 countries.

Vietnam has participated in the biannual survey four times previously, in 2015, 2017, 2019 and 2021. The country’s ranking improved after each survey./.