Vietnam plans to spend over VND299,325 billion (nearly US$13 billion) on education in 2021, down 4.7% from 2020, according to the Government's report to the National Assembly on education activities and disbursement of budget capital for education in 2021.

Photo: Thanh Hung

The paper points out numerous issues , including the fact that the state budget expenditure ratio for the entire education sector in 2021 is only around 17.3% of the total budget spending, which is below the required rate of 20% of the Law on Education.

Many provinces and cities have not yet secured the required rate of 18% of spending the budget allocation for education on expetise activities in Decision No. 46/2016/QD-TTg, presenting difficulties in assuring local education quality.

In 2021, the total revenues of education and training institutions at all levels is estimated at 38,550 billion VND, 15% less than 2020. According to the government, the impact of the Covid-19 pandemic and natural calamities such as storms and floods are the reasons behind the reduction of revenue of education and training institutions in 2021. Revenue from tuition fees dropped by 13%-18%.

The National Assembly approved VND249,971 billion in recurrent expenditures for the entire education sector in 2021, accounting for 83.5 percent of the total budget allocated to the sector. According to reports by the Department of Education and Training of 63 provinces and cities in the country, the National Assembly-approved target will be fulfilled this year.

The Government also pointed out concerns over the balance of recurrent expenditures and spending on investment and development in the field of education. It is noteworthy that the education sector is the most heavily reliant on finances so it is very difficult to reduce recurrent expenditures under a roadmap in accordance with Resolution No 19-NQ/TW (25/10/2017).

In 2021, the Ministry of Education and Training is allowed to manage the disbursement of 2.2% of budget allocated for recurrent expenditure for education, which is sufficient to cover only 70% of the Ministry's minimal proposals.

This year the Ministry of Education and Training was allocated with over VND5,430 billion for recurrent spending, over VND850 billion less than 2020, which is insufficient to cover essential demands. The ministry has proposed to be granted with an additional of VND721 billion for its recurrent spending in 2021. The Government has provided over VND293 billion, nearly VND428 billion less than the proposal.

According to the Government report, by June 30, 2021, the education sector disbursed more than 2,513 billion VND of the allocated budget for recurrent spending, reaching 46% of the year plan. It is estimated that the yearly plan on recurrent spending will be completed this year. 

Thanh Hung

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