LOCAL FINANCE SURVEY REPORT - The World Bankdocuments.worldbank.org/curated/en/... · the provincial authorities have some power to determine the priority of expenditures among projects

Background Report for the World Bank’s Country Economic Memorandum Vietnam: Fiscal Decentralization and Delivery of Rural Services

LOCAL FINANCE SURVEY REPORT (Nam Ha, Quang Tri, Ha Giang, Ben Tre and Quang Ninh provinces)

April 1996

Country Department, Vietnam Poverty Reduction and Economic Management Sector Unit, East Asia and Pacific Region Development Prospects Group

Duc Minh Pham Minh Binh Pham, Consultant The World Bank

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ACRONYMS AND ABBREVIATIONS

CHC Commune Health Center GCOP Government Committee of Pricing MOET Ministry of Education and Training MOF Ministry of Finance MOH Ministry of Health MOLISA Ministry of Labor, Invalids and Social Affairs MPI Ministry of Planning and Investment NGO Non-Gevernmental Organization NPF National Program Fund PDE Provincial Department of Education PDF Provincial Department of Finance PDH Provincial Department of Health PDT Provincial Department of Transport PPIC Provincial Planning and Investment Committee SOE State-Owned Enterprise

TABLE OF CONTENTS

I. OBJECTIVE………………………………………………………...........................1

II. METHODOLOGY…………………………………………………………………1

III. BROAD FINDINGS………………………………………………………………3

IV. RECOMMENDATIONS………………………………………………………..17

ANNEX………………………………………………………………………………18

Tables

Table 1. Economic and Social Indicators of Surveyed Provinces in 1995……………2

Table 2. Surveyed Provinces' Revenues in 1994……………………………………...6

Table 3. Surveyed Provinces’ Revenues in 1995……………………………………..7

Table 4. Per Capita Revenues, Transfer and Expenditures in 1994 in Surveyed Districts………………………………………………………………………8

Table 5. Per Capita revenue, transfer and expenditure in 1995 in surveyed districts....9

Table 6. Surveyed Provinces' Expenditures in 1994………………………………….9

Table 7. Surveyed Provinces’ Expenditures in 1995………………………………...10

Table 8. Education Expenditures in Surveyed provinces in 1994…………………...13

Table 9. Surveyed Provinces’ Health Expenditures…………………………………15

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I. OBJECTIVES

1. The local finance survey is conducted by a group of Resident Mission staffs and local consultants in 20 communes in 10 districts of five provinces throughout the North, Center and South of Vietnam. The survey is taking a bottom-up approach to examine sources of finance actually used to deliver basic services; local capacity; and quality of commune services. It also examines whether communities’ participation in local planning and to what extent the commune, district and province work together throughout planning, budgeting, financing and delivering these basic services. This local finance survey is aimed at using for the Bank’s analysis of what changes in financial or administrative mechanisms could encourage better delivery of rural services.

II. METHODOLOGY

2. Survey sites are selected to try to maximize variation. Thus, the provinces for the survey vary geographically and economically. Five have been so selected:

� Nam-Ha is a relatively better-off province in the Red River delta with a population of 2,697,000 persons. The economy registered at a growth rate of 7.7 percent in 1995. Net per capita transfer from the central government in 1994 was 62,662 dong.

� Ha-Giang is a poor province in the northern mountains with a scattered population and high concentration of ethnic minorities. This provinces receives one of the largest per capita transfers from the central government at 162,000 dong per person in 1994.

� Quang-Tri in the North Central coast is a poor province with dense population and very difficult living conditions due to frequent natural calamities. The average of GDP growth of the province is 6 percent. This province often receives emergency assistance from the central government and receives a per capita transfer of 74,113 dong in 1994.

� Ben-Tre in the Mekong delta is an “average” income province with a high concentration of the poor nevertheless. Ben Tre’s population is 1,356,359 persons in 1995. The economy grew at 5.78 percent in 1995. It received 20,655 dong per capita in transfer from the central government in 1994.

� Quang-Ninh in the northern uplands is a wealthy province which receives 15,448 dong per capita transfer from the central government in 1995.

See Table 1 for background information of all surveyed provinces.

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Table 1: Economic and Social Indicators of Surveyed Provinces in 1995

Nam Ha Quang Tri

Ben Tre Ha Giang Quang Ninh

1. Population 2,697,000 530,665 1,356,359 543,000 915,033 2. Number of districts and towns in province 13 8 8 10 13 3. GDP growth structure 7.70% 6.20% 5.78% 7.00% 7.15% - Agriculture/Forestry 34.12% 4.99% 62.99% 16.80% - Industry/Construction 10.45% 7.35% 17.02% 38.60% - Service 55.43% 7.31% 19.99% 44.60% 4. GDP per capita US$162 US$106 US$161 US$61.5 US$213 5. Number of schools 286 - Primary school 430 144 140 157 115 - Lower secondary school 362 67 36 14 43 - Higher secondary school 40 4 57 3 28 6. Number of school pupils rate Male 56.10% 52.70% 55.15% Female 43.90% 47.30% 44.84% 7. Number of health facilities 138 179 200 201 Provincial Hospital 6 2 2 1 4 District hospitals 13 5 8 9 13 CHCs 104 160 156 148 Polyclinics 7 9 24 13 8. Malnutrition rate 47.00% 36.70% 55.10% 52% 9. Vaccination coverage rate 95.11% 90.75% 85.90% 93.17% 10. Number of births delivered by a trained attendant

85.00% 48.70%

11. Contraceptive prevalence rate 55.00% 45.50% 48.70% 56.98% 12. Number of communes without 12 month car roads to districts

7/136 18/157 46/168 8/175

13. Percent of population with access to safe drinking water

60.00% 34.80% 28.68% 4.00% 60.00%

14. Percent of population receiving social assistance

3.17% 12.30% 22.20%

3. The districts and communes are also to be selected purposefully to maximize variations among the following characteristics: economic activity, initiative of local leadership, presence of support from the central government, recipient of donor support, involvement of non-governmental organizations (NGOs) or active mass organizations, etc.

4. The following communes and districts in each province are selected: � Nam-Ha Province: Xuan-Thuy District (better off), Xuan-Thuong and Giao

Long Communes; Thanh-Liem District (poorer), Thanh-Hai and Thanh Binh Communes.

� Quang-Tri Province: Gio-Linh District (poorer), Gio-Thanh and Trung Hai communes; Trieu Phong District (better off), Trieu Thuan and Trieu Van communes.

� Ha-Giang Province: Quan Ba District (poor), Quan Ba and Thanh Van communes; Vi Xuyen District (better off), Ngoc Linh and Trung Thanh communes.

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� Ben-Tre Province: Binh Dai District (poorer), Tam-Hiep, Loc Thuan, Dinh Trung, Thanh Phuoc communes; Mo Cay District (better off), Minh Duc, An Dinh and Thanh Thoi communes.

� Quang-Ninh Province: Tien Yen District (poorer), Hai-Lang and Phong Du Communes. Dong Trieu District (better-off), Hung Dao and Tan Lap communes.

5. In all provinces, the survey teams met with the following groups: � At provincial and district levels. People’s Committee representatives

responsible for provincial budget; Education and Training department representatives, Health Department representatives, Committee for Population and Family Planning representatives, Transportation, Labor, Invalids, and Social Affairs and rural water representatives, and mass organizations representatives.

� Commune Level. Chairman of the People’s Committee and the person responsible for the commune budget, head teachers; and health staffs. In addition, 2 households with school age children in each surveyed commune were interviewed mainly on household expenditures on education and health care.

6. There are three main issues addressed in the survey: (a) local revenues and expenditures; (b) quality of services; and (c) local participation (and how local services respond to local needs).

III. BROAD FINDINGS

Local Services financed and delivered

7. General Budgetary procedures. The procedures for preparing the budget in all surveyed provinces seem to follow a common approach. Every year, expenditures and revenues for each fiscal level of government are drawn up using the norms (education, health, roads and transport, and social welfare), the tax rates in the guidelines issued by the Ministry of Finance (MOF) and the performance of the province’s last year economic plan implementation. 8. Revenue projections are drawn by the province’s Tax Department. Based on the revenue targets assigned by the center, the province’s tasks of socio-economic development , the province’s tax department after reviewing all potential sources of revenues in the area of its jurisdiction and in consultation with all concerned line departments projects the province revenue plan. The provincial Tax Department will submit the revenue projection to the provincial People’s Committee and the People’s Council for review and approval. The agricultural tax is most important revenue component at the district and commune level. The tax norm for agricultural lands (kg paddy/ha) set by the MOF based on land classification by quality and area made by the Commune People’s Committee. The unit price is negotiable during the annual meetings between the MOF and provinces, and can be adjusted. Since the MOF’s guidelines have a provision that if at the year end, the province’s actual revenues

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exceed the planned revenues, the province can retain the extra revenues for its expenditures, all surveyed provinces consistently tend to underestimate revenues and set targets which can be easily reached. Therefore, at the year end they can have more revenues for other expenditures. Data collected in the surveyed provinces have shown this experience. In Quang Tri, in 1995 the province recorded revenues of 107.6 percent over planned revenues and in the same year they were 109 percent and 101.9 percent in Ha Giang and Ben Tre respectively.

9. Capital expenditures are drawn up by the provincial Planning and Investment Committee (PPIC). Each year, the PPIC receives project proposals from all provincial sectors and works out a provincial plan of investment. Afterwards, the PPIC reaches agreement with the provincial Department of Finance (PDF) priority list of investment and records them in the line of capital expenditure of the provincial projected budget. Investment projects need to be reviewed and approved by the Ministry of Planning and Investment (MPI) (so that these fit in with the overall national investment strategy plan) and the MOF for disbursements before they are included in the capital budget of the year to be funded. Once the project are approved for funding and implementation, the provincial authorities have some power to determine the priority of expenditures among projects. This is so because the approved capital budget is not what was requested, usually a lower amount. In 1996, Ha Giang asks for 175 billion dong and receives only 64.5 billion dong accounting for 30 percent requested. In Quang Tri in 1995, the province asked for 60 billion dong but received about 30 billion dong, accounting for 50 percent. 10. Allocation of capital budget for districts is based on the some criteria: a) structure of sectors; b) scope of economic and social impact on people; c)effectiveness of investment; and d) feasible implementation. When proposing projects, districts have to prioritize their needs. When funding is not enough, top-down prioritized projects would be funded. No investment project is implemented at commune level due to the lack of funds. 11. Recurrent expenditures are projected by the PDF. On the basis of the detailed norms specified for each item of expenditure, the province makes projections of current expenditure. Recurrent budget is mainly to cover the administrative operation (salary, maintenance, small repair...). Salary for teachers and health workers at communal level is paid from provincial budget. The salary scale and social welfare level are set up by the Ministry of Education and Training (MOET), Ministry of Health (MOH), Ministry off Labor, Invalids and Social Affairs (MOLISA) and the Government Committee of Pricing (GCOP).

12. For economic activity-related expenditures (agriculture, forestry, irrigation, transportation), the PDF in consultation with provincial line departments works out expenditure targets for each line items based on the MOF’s norms. For example, in the field of rural roads, based on the need of new construction and repairs proposed by districts and communes, the provincial Department of Transport (PDT) sums up project proposals and prioritizes them. If a construction of a new road or bridge is proposed, then the PDT has to work out with the PPIC. If project proposal is on repairing roads, the PDT works out with the PDF. Subject to the availability of funding and revenues assigned by the MOF, the PDF reaches an agreement with the PDT in cutting expenditure lines which exceed the financial capability. The principle

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for cutting funding is based on the priorities of proposals by districts and communes, taking into account of poverty conditions and location of each district and commune.

13. There are many areas open for negotiation. Negotiations take place between provincial authorities and the MOF and MPI on revenue and expenditure targets, on putting the province in which types of areas. (If a province like Quang Tri is in the category of mountainous or remote area, Quang Tri would have higher assigned per capita expenditures on administration, education, health than the case if Quang Tri is considered as a plain area. In 1994 and 1995, Quang Tri was in the category of plain area. From 1996 onward, Quang Tri is in the category of midland and coastal areas. Quang Tri gets more revenues as a result of this.

14. District is a budget estimating level of the province’s budget. Besides the revenues retained in accordance with the State regulations, in Ben Tre province districts are allowed to retain 3 percent of the total revenues collected in the area of their jurisdiction for the use of new rural development and regulating revenues among the poor communes.

15. Communal budget. The State ensures the payment for commune administrative staffs, teachers and health workers as well as minimum activities of the commune. If the revenues collected in the commune cannot meet the required expenditures, province will grant a transfer to that commune to balance the commune budget. The main revenues of commune are 10 percent of agricultural tax, commune trading tax, 100 percent slaughter tax and fees. In principle, budget preparation needs to be done from bottom-up. But in reality, the timetable for preparing budget shows that district levels does not take into consideration of commune’s budget draft. All communes in Quang Tri province we visited, the People’s Committees prepares their commune budgets at the same time when district People’s Committees prepares its budget. For example, in December, all communes and district complete their process of budget preparation. There is no time for communes to submit budget draft to district for consideration. The same situation was seen in Ben Tre, Ha Giang and Quang Ninh.

16. Inter-governmental transfer. If the retained revenues of the province do not meet the assigned expenditures, the province receives transfer from the center. Inter-governmental transfer mainly fills the gap between revenues and expenditures and also to ensure minimum level of services in provinces, districts and communes. Besides the general purpose transfers, all surveyed provinces receive funding through national targeted programs (mainly health and education).

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Surveyed provinces’ budget performance

Table 2: Surveyed Provinces' Revenues in 1994

Quang Tri Ben Tre Ha Giang Quang Ninh Nam Ha Amount % Amount % Amount % Amount % Amount %

Revenue Item Mil dong Mil dong Mil dong Mil dong Mil dong A. Total State Revenues 252,595.50 199,169 Total taxes collected in province

170,398.30

Total Province revenues 131,113.30 100% 180,154 100% 190,452 100% 305,840 100.0 305,000 I. Provincial tax 50,288.22 165,694 18,531 136,00 1. State enterprises 17,852.00 13.62% 36,260 20.13% 6042 3.17% 86928 28.42 - Central SOEs 5,808.54 4.43% - Local SOEs 12,043.86 9.19% 2. Non-state sectors 18,879.67 14.40% 43,578 24.19% 7569 3.97% 51327 16.78 Of which, slaughter 678.40 0.52% 431 0.23% 3. Agriculture 2,889.24 2.20% 28,675 15.92% 3025 1.59% 8248 2.70 5. Lottery 1,218.32 0.93% 38,806 21.54% 12157 3.97 6. Transport fee 597.05 0.46% 5,048 2.80% 7. Other revenues 3,981.73 3.04% 7,839 4.35% 105028 34.34 8. Land use and housing 730.48 0.56% 639 0.34% 6239 2.04 9. Income tax 121.16 0.09% 3,103 1.72% 2132 0.70 10. Fees 3,530.74 2.69% 2,385 1.32% 825 0.43% 3850 1.26 Of which, from communes 0.00% 11. Aid 487.43 0.37%

0.00% II. export-import tax 119,568.00 512 0.28% III. Revenue carried from last year

8,083.40 6.17% 4,767 2.65% 0 0.00% 4724 1.54

V. Transfer from center 74,113.79 56.53% 28,195 15.65% 171,921 90.27% 25207 8.24 169,000 - Intergovernmental transfer 73,313.79 - aid 800.00 - relief aid VI. Transfer to center 19,014 10.55% Per capita revenues 249,465 dong 135,352 dong 350,740 dong 344,009 dong

17. The main revenue sources of all surveyed provinces are taxes from state-owned enterprises (SOEs), non-state enterprises and agricultural land (see Table 2 and 3). In 1994 and 1995, these taxes account for 80 percent of total retained revenues in Quang Tri and about 90 percent of total retained revenues in Ha Giang. But in Ben Tre province, although these taxes account for two third of the total collected revenues, lottery revenue is the forth revenue source and the second biggest single source in Ben Tre. Inter-governmental transfers play an important role in poor provinces. Transfers from the center accounts for 90 percent of Ha Giang’s revenues and 57 percent of Quang Tri’s revenues while in Ben Tre, a better-off province, the transfers accounts for only 16 percent of its revenues. Per capita transfer in the surveyed provinces shows that a poorer province gets higher transfer. (See Table 4 and 5). And poorer districts and communes also get higher per capita transfer. Per capita transfer for Gio Linh (poorer) district, Quang Tri province is 18,207 dong in 1994 and 27,880 dong in 1995 while per capita transfer for Trieu Phong district (better-off) in the same province is 16,416 dong and 12,992 dong respectively. In Ha Giang, per capita transfer for Quan Ba (poorer) is 173,250 dong in 1994 and 250,969 dong in 1995 and that for Vi Xuyen district (better-off) is 108,833 dong and 162,111 respectively.

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Table 3: Surveyed Provinces’ Revenues in 1995

Quang Tri Ben Tre Ha Giang Quang Ninh Revenue Item Mil. dong Mil. dong Mil. dong Mil. dong

A. Total State Revenues 251,478 Total taxes collected in province Total Province revenues 223,003 100% 218,089 100% 245,416 100% 210,525 100% I. Provincial tax 65,029 223,518 28,799 163,390 1. State enterprises 22,913 10.27% 45,522 20.87% 8,222 3.35% 55,710 26.46% - Central SOEs 8,673 3.89% - Local SOEs 14,240 6.39% 2. Non-state sectors 19,850 8.90% 59,034 27.07% 10,140 4.13% 46,130 21.91% Of which, slaughter 771 682 0.28% 3. Agriculture 6,806 3.05% 37,263 17.09% 3,989 1.63% 10,400 4.94% 5. Lottery 1407 0.63% 53,957 24.74% 15,700 7.46% 6. Transport fee 1,914 0.86% 9,268 4.25% 7. Other revenues 5,172 2.32% 12,262 5.62% 85 0.03% 9,550 4.54% 8. Land use and housing 3,520 1.58% 1,325 0.54% 9. Income tax 104 0.05% 4,754 2.18% 1,500 0.71% 10. Fees 3,343 1.50% 1,458 0.67% 1,704 0.69% 20,700 9.83% Of which, from communes 1,884 11. Aid 3,700 1.76%

II. Export-Import tax 157,974 70.84% 2,063 0.95% 33,000 15.68% III. Revenue carried over from last year

7,060 3.17% 1,284 0.59% 2,652 1.08%

IV. Intergovernmental Transfer from center

9,645 4.33% 24,515 11.24% 216,617 88.27% 14135 6.71%

- Inter-governmental transfer - Aid - Relief aid 9,645 V. Transfer to center 33,389

Per capita revenues 420,233 dong 160,790 dong 451,963 dong 230,073 dong

18. Commune Budget. At commune level, formal budget is very small. The main official sources are retained portion of agricultural tax (i.e.10 percent), slaughter tax (100 percent), land and housing tax and transfer from district. In all surveyed communes, the retained revenues and transfer from district could only cover administrative expenditures. In Hai Lang commune of Quang Ninh (better off) province, retained revenues and transfer from district amounts to 149,898 thousand dong while recurrent expenditures amount to 162,299 thousand dong. In Trieu Thuan of Quang Tri (poorer) province, retained revenues and transfer from district amount to 68,000 thousand dong in 1994 covering enough recurrent expenditures of the commune. In six surveyed communes in Ben Tre, only Tam Hiep commune generates enough funding for its recurrent expenditures without having transfer from district. In Ben Tre, communes which could balance the revenues and recurrent expenditures are communes having a rather big and stable source of tax collection such as transport and port fees, market fees. Per capita revenue in all surveyed communes is very small, only several thousand dong per head.

19. Since retained revenues and transfer from district could cover only commune administrative costs, funding for commune-level services come from two main sources. Expenditures for commune schools and health centers incur at higher levels (i.e. teachers’ salaries are paid by the province budget. Commune health workers’

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salaries were paid half by province and half by commune before 1995). Provincial budget in surveyed communes covers from 70 percent to 90 percent of total cost of commune education. In Trung Hai commune, Gio Linh district, Quang Tri (poorer) province, province budget in 1995 covered 93 percent of commune education cost (mainly teachers’ salaries) and local contribution and fees covered 7 percent (building repairs). In Tan Viet commune, Dong Trieu district, Quang Ninh (better-off) province, in 1995 province budget covered 60.3 percent of commune education costs, district budget covered 28.1 percent, commune tax 8.1 percent and user fee 2.7 percent. Ha Giang province is special case since Ha Giang is a mountainous province. For example, in Thanh Van commune, Quan Ba district, Ha Giang province, government budget covered 37.7 percent of commune education cost through national targeted programs, province budget covered 46.6 percent, contribution 5.5 percent and donor 10.3 percent. (See Annex on commune-level expenditures by sector for further reference).

20. Capital constructions are hardly financed by the commune budget. School or health center construction are financed by special transfers from the center through national programs such as program for improving school facilities or resident contributions (labor or students’ compulsory contributions). Commune road construction or repairs are financed mainly by resident contributions in form of labor contribution or by outside donors. In Nam Ha, each resident has to contribute 5 kilograms of rice per year for road construction and maintenance. In Quang Tri, up to 70 percent of expenditures for repairing commune roads are from contribution and outside aids. Each commune resident has to contribute 10 labor days for these public service. In Ben Tre, resident contributions and user fees account for 40 percent to 50 percent of the total expenditures on road. And in Ha Giang, nearly 100 percent of commune road construction are from user fees and contribution. Contribution for repairing commune schools is a rather big portion of commune education expenditures ranging from 5 percent to 23 percent in the surveyed communes. Therefore, if all sources are taken into account including funding from higher levels for education and health, and user fees as well as voluntary contributions, the actual commune budgets are much bigger than the “official” commune budget. In 1995, for example, the Trieu Van (of Quang Tri province) expenditures in its official budget were only about 131 million dong, but the actual total expenditures amount to 1,109 billion dong. In Ben Tre, the situation is the same. (See Annex on commune expenditures by sector). In sum, commune households contribute a lot through user fees and voluntary contribution to the provision of commune-level services.

Table 4: Per Capita Revenues, Transfer and Expenditures in 1994 in

Surveyed Districts Quang Tri Ben Tre Ha Giang Quang Ninh

Gio Linh (poorer)

Trieu Phong (richer)

Binh Dai (poorer)

Mo Cay (richer)

Quan Ba (poorer

Vi Xuyen (richer)

Tien Yen (poorer

Dong Trieu

(richer 1. Per Capita revenues 2. Per Capita transfer from center 3. Per capita transfer to center 4. Per capita expenditures

35,287

18,871

33,110

32,198

16,264

30,450

181,219

173,250

181,000

131,038

108,833

136,000

257,842

158,994

257,858

149,459

51,275

143,545

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Table 5: Per Capita revenue, transfer and expenditure in 1995 in surveyed districts

Quang Tri Ben Tre Ha Giang Quang Ninh Gio Linh (poorer)

Trieu Phong (richer)

Mo Cay (poorer)

Binh Dai (richer)

Quan Ba (poorer)

Vi Xuyen (richer)

Tien Yen

(poorer)

Dong Trieu

(richer) 1. Per Capita revenues 2. Per Capita transfer from center 3. Per capita transfer to center 4. Per capita expenditures

46,714

27,895

46,440

46,292

12,996

45,207

61,923

47,915

84,886

70,250

265,656

250,969

265,312

192,736

162,111

184,361

235,492

152,414

235,492

165,019

67,045

164,453

21. See Table 6 and 7 for surveyed provinces’ expenditures. Generally, capital expenditures account for 20 percent to 30 percent of the local budget. It is not necessarily the case that richer provinces have higher ratio of capital expenditures than poorer provinces. Ha Giang (the poorest surveyed province) has the highest ratio of capital expenditures. In 1994, the Ha Giang’s capital expenditures accounted for 33.7 percent of total expenditures. Quang Ninh (the richest surveyed province) is second to Ha Giang in having highest ratio of capital expenditures which accounted 29.21 percent of total expenditures. The explanation for these experiences is that Ha Giang, a mountainous and multiethnic province is heavily financed by the center. The central government focuses on capital construction in Ha Giang. In the case of Quang Ninh, the province having ensured its recurrent expenditures, has available funding for capital construction.

22. In the recurrent items, salaries account for 20-30 percent of the recurrent expenditure budget, education and health amount to 40-50 percent of total recurrent expenditures.

Table 6: Surveyed Provinces' Expenditures in 1994 Quang Tri Ben Tre Ha Giang Quang Ninh Nam Ha Total Province Expenditure 124,053.07 100% 178,871 100% 187,800 100% 305,840 100% 294,000 1. Capital Expenditures 29,613.80 23.87% 30,952 17.30% 63,292 33.70% 89,333 29.21% 41,000 - Industry 4,171.00 3.36% 2,019 1.13% 11,094 5.91% 7,380 2.41% - Agriculture 4,316.00 3.48% 6,019 3.36% 4,642 2.47% 7,146 2.34% - Transportation 4,972.00 4.01% 12,307 6.88% 22,139 11.79% 17,144 5.61% - Trade and material supply 800.00 0.64% 1,914 1.07% 2,260 1.20% - Other sectors 2,533.00 2.04% 7,933 4.44% 23,157 12.33% 57,663 18.85% 2. Expenditure for working capital

2,985.50 2.41% 1,400 0.78%

3. Economic Expenditure 15,071.70 12.15% 14,905 8.33% 28,256 9.24% 4. Social and cultural expenditure 38,642.48 31.15% 89,188 47.49% 95,964 31.38% Education and Training 26,908.97 21.69% 54,134 30.26% 34,199 18.21% 53,760 17.58% Health 7,605.03 6.13% 17,971 10.05% 20,402 10.86% 16,487 5.39% Scientific research 663.42 0.53% 0.00% 1,575 0.51% Culture 1,885.39 1.52% 5,987 3.35% 7,483 3.98% 7,921 2.59% Broadcast 753.08 0.61% Sport 391.54 0.32% 2,036 0.67% Price subsidies 435.05 0.35% 619 0.35% Other services 19,464 10.36% Finance and Social insurance 1,249.74 1.01% 3,593 2.01% 7,640 4.07% 14,185 4.64% 5. Administrative expenditure 21,432.69 17.28% 25,189 14.08% 26,311 14.01% 55,744 18.23% 6. Other expenditures 5,900.37 4.76% 5,798 3.24% 9,009 4.80% 22,113 7.23% 7. Aid expenditure 1,287.43 1.04% 8. Transfer to lower levels 7,265.23 5.86% 18,323 10.24% 14,430 4.72% Per capita expenditures 227,107 dong 131,876 dong 345,856 dong 344,009 dong Per capita transfer from center 141,013 dong 20,655 dong 316,613 dong 28,198 dong

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Table 7: Surveyed Provinces’ Expenditures in 1995 Expenditures Quang Tri

Ben Tre

Ha Giang

Quang Ninh

Total Province Expenditure 179,204 100% 219,907 100% 245,416 100% 201,995 100.00% 1. Capital Expenditures 47,260 26.37% 44,875 20.41% 79,503 32.40 69,100 34.21% - Industry 2,748 1.53% 9,481 4.31% 11,565 4.71 11,200 5.54% - Agriculture 5,031 2.81% 5,800 2.64% 9,400 3.83 13,940 6.90% - Transportation 9,170 5.12% 15,500 7.05% 25,000 10.19 9,813 4.86% - Trade and material supply 830 0.46% 3,125 1.42% 9,000 3.67 - Other sectors 3,551 1.98% 10,265 4.67% 24,538 10.00 34,147 16.90% 2. Expenditure for working capital

2,624 1.46% 9,086 4.13%

3. Economic Expenditure 16,004 8.93% 15,073 6.85% 22,095 10.94% 4. Social and cultural expenditure

62,380 34.81% 96,076 39.15

Education and Training 40,686 22.70% 68,803 31.29% 47,167 19.22 59,100 29.26% Health 9,284 5.18% 20,073 9.13% 21,218 8.65 16,780 8.31% Scientific research 870 0.49% 0.00% 1,430 0.71% Culture 3,673 2.05% 9,001 4.09% 4,913 2.00 8,900 4.41% Broadcast 1,205 0.67% Sport 677 0.38% 4,500 2.23% Price subsidies 1,480 0.83% Other services 16,757 6.83 Finance and Social insurance 4,505 2.51% 3,467 1.58% 6,021 2.45 15,000 7.43% 5. Administrative expenditure 24,563 13.71% 24,547 11.16% 35,841 14.60 63,500 31.44% 6. Other expenditures 15,848 8.84% 5,524 2.51% 33,996 13.85 22,800 11.29% 7. Aid expenditure 8. Transfer to lower levels 10,525 5.87% 19,767 8.99% 24,500 12.13% Per capita expenditures 337,697 dong 162,130 dong 451,963 dong 220,757 dong Per capita transfer from center 18,175 dong 18,074 dong 398,926 dong 15,448 dong

23. Authorities in all surveyed provinces and districts do not have much flexibility in adjusting funds between capital and recurrent expenditures and in line items such as between education and health since the MOF norms are very detailed in each recurrent expenditure item. Local authorities we met indicated that they had to follow very strictly to the norms. However, they said to some extent, they could have some freedom of adjustments in the implementation of capital projects once projects are approved by the center. Especially when funding is short of request, surveyed provincial authorities have limited flexibility in allocating funds available for district. At district level, local authorities do not have much authority in adjusting funds within sector. But the flexibility varies differently across districts. In Ha Giang, surveyed district authorities indicated that they did not have much flexibility in budget implementation. In Nam Ha, Xuan Thuy district authorities said they have more freedom to adjust the current expenditures than capital expenditures. In Quang Tri, provincial and district authorities said they had some flexibility in adjusting spending items of economic activities (e.g. roads and irrigation, agriculture and forestry). Provincial authorities said that they could implement the project B first in case of shortage of funding if that project meets the very need of local people first. The main criteria for adjusting these items is based on the situation of that year, e.g. in a certain year, irrigation needs more funding, then they can allocate more funding for irrigation. Nearly in all surveyed communes, local authorities indicated that if they had more

11

discretion in utilizing funding, they could have responded more to local needs and conditions.

24. We found that in surveyed districts and communes, district authorities could not play any role in adjusting budget or revenues for communes, especially in transferring funding from richer commune to poorer commune, therefore poor commune in rich district cannot get any more funding and benefit from other rich communes or from district’s budget. The school we visited in Trieu Van (poorer) commune of Trieu Phong (better off) district in Quang Tri is in the same situation as the school in Trung Hai (poorer) commune of Gio Linh (poorer) district.

25. At commune level, besides adequate local financial resources, provision of commune-level services is very much depending on the dynamic behavior of commune authorities. In surveyed communes, we found that some communes which lack resources and commune authorities are not dynamic, therefore local basic services suffers. For example, in Gio Linh (poorer) district of Quang Tri province or in Quan Ba (poorer) district of Ha Giang province, both communes of two districts are poor in financial resources and their local authorities are not strong, therefore communal roads are not good and schools are in bad condition. Some surveyed commune authorities are able to combine well funding from higher levels with mobilization of funding within commune. In two communes we visited in Xuan Thuy district of Nam Ha province, because of the different behaves of commune authorities, the quality of commune services is different. In Xuan Thuong, local authorities have an incentive policy in encouraging local households in mobilizing contributions for building and maintaining communal roads therefore Xuan Thuong’s quality of inter-communal roads is better than that of Giao Long whose authorities seem not to have an adequate incentive policy. School and commune health center (CHC) in Xuan Thuong are also in better condition than school and health center in Giao Long. Since funding from higher levels are only enough for ensuring salaries of local authorities, teachers and health workers, quality of commune level services depend very much on the possible mobilization of contribution from resident households.

26. Education. In all surveyed provinces, education budgeting procedures seem to follow the same manner. The provincial Department of Education (PDE) oversees the education budget in the province. This budget is prepared by the PDE using the norms based on the MOF’s guidelines. There are several factors in planning budget for education:

� Funding level on population. � Each province depending on economic situation or location is given a

coefficient. For example, coefficient for Hanoi, Ho Chi Minh city, Hai Phong...is 1 while Quang Tri’s coefficient is 1.6 (1994).

� Number of schools, classes, students and teachers.

27. The PDE works out plans for education capital construction with the PPIC. The PDE works out budget for recurrent expenditures with the PDF. The PDE manages recurrent expenditures for higher secondary schools while district education section manages expenditures for primary and lower secondary schools. Projects are proposed by schools. In each surveyed commune, there is a commune education

12

council consisting of commune People’s Committee, People’s Council, school headteacher, commune mass organizations. If the school in commune in need of repair, the People’s Committee with consent of the education council puts a repair proposal in the commune’s list of annual capital construction proposals. We found in the surveyed communes that normally commune expect funding from national targeted program for upgrading schools or building new schools than district or province budget. In Trung Hai commune of Quang Tri province, the commune authorities for several years, have asked funding for repairing schools and until 1995 the commune got 16 million dong from national targeted programs to repair commune school.

28. Budget for national targeted programs is planned by the MOH and implemented by province. Before 1993, the PDE is authorized to plan and allocate the National Program Fund (NPF). Since 1994, this fund has been managed differently. The MOET informs province of funding estimation procedures. Based on these norms, the PDE makes proposals and submit them to the Provincial People’s Committee. The National Programs Council (consist of Provincial People’s Committee, PDF and PPIC) approves this proposal. From 1996 on, expenditures for national targeted programs will be recorded in provincial budget.

29. The central budget guidelines determine that the portion of teacher salaries is 60 percent and other education-related expenditure is 40 percent but implementation of these norms is different within the surveyed provinces. At the provincial level, Quang Tri allocated 64 percent of provincial education budget for salaries and the rest for education related expenditures but at district level, education section allocates only 20 percent for other expenditures while 80 percent for salaries. In Ha Giang, the province allocated 43 percent of education budget for other expenditures and 57 percent for teachers’ salaries; Quang Ninh allocates respectively 25 percent and 75 percent; and Ben Tre allocates respectively 29 percent and 71 percent.

30. In all surveyed provinces, actual per capita expenditure seems to be higher than the standardized norms for education, except Ben Tre. (See Table 8). The MOF’s 1994 norms for per capita education expenditure as follows: Cities: 37,500 dong; Plains: 26,700 dong; Midland and Coastal areas: 29,400; Low mountainous and remote areas: 33,500 dong; High mountainous and Islands: 42,800.

13

Table 8: Education Expenditures in Surveyed provinces in 1994 Quang Tri

Ha Giang

Ben Tre

Nam Ha

Quang Ninh

Amount (mil)

% Amount (mil)

% Amount (mil)

% Amount (mil)

% Amount (mil)

%

Total 32,617 40,726 63,728 56,947

Province Budget 23,574 72.28% 30,530 74.96% 47,683 74.82% 94,300 52,480 92,16%

Salaries 13,390 41.05% 17,545 43.08% 33,826 53.08% 73,300 40,298 70.76%

Subsidies 1,787 5.48%

Other expenditures 8,397 25.74% 825 2.03% 13,857 21.74% 2,557 4.5%

Aid 194 0.59%

National Targeted Programs 5,299 16.25% 6,527 16.03% 6,156 9.66% 4,476 7.86%

Capital Construction 1950 5.98% 3,669 9.01% 9,889 15.52% 9,625 16.9%

Tuition fees and contribution 1600 4.91% 6,300

Population 525,577 543,000 1,331,000 2,697,000 889,046

Per capita education exp (1) 62,059 dong 75,002 dong 47,880 dong 64,054 dong

Budget Per capita edu exp (2) 44,854 dong 56,225 dong 35,825 dong 34,965 dong 59,030 dong

Note: 1. This per capita education expenditure includes all sources such as aid, national targeted programs... 2. This per capita education expenditure includes only provincial education budget.

31. Selection of commune teachers is made by district Education Section and submitted to the PDE for approval. Commune teachers’ salary scale is set by the center. The center also sets norms for number of teachers for each class. For example, 1.1 teacher for one primary school’s class, 1.75 teachers for one lower secondary school’s class and 2.3 teachers for one higher secondary school’s class. This norm is followed rather strictly in surveyed provinces. For example, in Gio Linh district of Quang Tri province, one teacher for one primary school, 1.70 teacher for one lower secondary school’s class.

32. School fee is set by MOET and school fee is waived for primary pupils. The school fee fund is used as a supplemental source of income for primary and secondary school teachers and also for other school-related expenses (school material). The ratio is followed: 35 percent of school fees for supporting teachers; 60 percent of school fees for school-related expenses; and 5 percent for school fee management. In the surveyed communes (applied with big differences), in addition to the salary as determined by MOET according to their grade, teachers get some supplement per month from the school-fee fund or on some occasions such as New Year a small amount of money contributed by parental associations. In two surveyed communes in Thanh Liem district of Nam Ha province, teachers get a supplement of 20,000 dong per month. Teachers in secondary schools get some additional payments for off-school sessions they conduct for students. Fees for these sessions are paid by students who attend these off-school tutoring sessions.

33. At the commune level, funds for education basically come from four sources including the NPF , provincial budget, voluntary contribution and tuition fees, and foreign aids. But not all communes can receive those above sources. The National Programs is a central assigned expenditure conducted by the PDE. In four visited communes of Ha Giang, there is only Thanh Van Commune receives the NPF. In Quang Tri, only two communes out of 4 surveyed communes received the NPF. The funds from provincial budget is largest part covering staff salary and supplies. Occasionally, provincial budget also provides fund for school new building and

14

expansion as shows in Ngoc Linh Commune of Ha Giang. A stable source of fund in commune is voluntary contribution. This fund which is in form of labor or in-kinds is voluntarily contributed by farmers to build, repair or maintain the schools and furniture. Amount of voluntary contribution is determined by district and commune People’s Committees depending on the specific economic conditions of the local areas, therefore the amount of contribution is different across districts and communes in one province, let alone the surveyed provinces. In Trieu Phong district of Quang Tri, the amount of contribution by each pupil is 25,000 dong while in Gio Linh district of Quang Tri, the amount is 10,000 - 20,000 dong. In Ha Giang, in two surveyed districts, the amount of contribution by each pupil is set at 10,000 dong. In Hai Lan commune, Tien Yen district of Quang Ninh, primary pupils contribute 15,000 dong and lower secondary pupil contributes 20,000 dong. But in Hung Dao commune, Dong Trieu district of Quang Ninh, primary pupil and lower secondary pupil contribute respectively 20,000 dong and 25,000 dong. The voluntary contributions accounted for 8.0; 5.0; 4.2 and 26.8 percent of total expenditure for education in Quan Ba, Thanh Van, Ngoc Linh and Trung Thanh communes of Ha Giang respectively. They account for the same ratio in Quang Tri and Ben Tre. They are the main source for commune school maintenance. This fact proves that the surveyed commune households contribute a big portion to local service through the way of voluntary contributions.

34. Commune schools in some surveyed districts are in need of repair but funding is tight. The ratio for capital construction in education in all surveyed provinces is very low in comparison with other expenditures. In communes whose schools were just built (i.e. Thanh Binh commune school in Nam Ha; Ngoc Linh commune school in Ha Giang), funding came mainly from either national programs or province's budget together with commune resident contributions. Small repairs of schools are financed mainly by commune budget and resident contribution. Repairs of commune school as well as community interests in education depend very much on commune people's committee incentive and commune economic situation. In Xuan Thuong (richer) commune Xuan Thuy (richer) district of Nam Ha province whose school facilities are good in general, local authorities are very concerned with education and they have some incentives to encourage student to study hard. People in the commune also make contribution in form of labor to repair the school. In the same province, in two communes of Thanh Liem district (poorer than Xuan Thuy district), the education is not a top priority for the commune authorities. The commune does not have much incentive to upgrade, repair school. This demonstrates that strong commune leadership can ensure efficient use of money on items of local needs.

35. Health Care. Funding level for health in all surveyed provinces follows the norm that is determined on population, number of hospital beds. The provincial Department of Health (PDH) prepares annual budget based on the annual guidelines issued by the MOF in which it set out targets for expenditure in the budget year.

15

Table 9: Surveyed Provinces’ Health Expenditures

Quang Tri (1994)

Ben Tre (1994)

Ha Giang Quang Ninh Nam Ha (1995)

Province budget National programs Aids Hospital fees Insurance Other revenues Total

47.4% 25.8% 15.6% 3.1% 7..9% 0.25% 100%

72.4% 20.5% 7.1%

Per capita exp Per capita curative Per capita preventive

24,753 VND 14,163 VND

7,982 VND

16,152 VND

16,166 VND 10,236 VND

3,263 VND

36. The normative per capita expenditures vary among the surveyed provinces. In Ha Giang, the norms are for hospital bed (8.5 million dong/ bed/year for a provincial hospital, and 6.5 million dong/bed/year for district hospital). In Quang Tri, the norms are 2.8 million dong for one provincial hospital bed; 2.5 million dong/bed for regional hospital; 1.2 to 1.5 million dong/bed for district hospital (1.5 million dong/bed for difficult and poor districts). This amount covers health worker salaries, medicines for poor people and cost of blanket and bed cloth. Districts are able to readjust the amount of funding assigned by the PDH for each bed in their own districts to meet the local need. In Ben Tre, the two norms of concern are for curative care (10,000 dong per capita) and preventive care (3,600 dong per capita). Together, these total 13,600 dong per capita. The province determines how to divide up this amount between the provincial and district levels. Ben Tre allocates it 50-50 percent between the province and district. Each level thus receives an average of 6,800 dong per capita. In Nam Ha, the province was also allocated 13,600 dong per capita. In Quang Tri, the province was allocated 15,226 dong per capita. 37. All surveyed provinces’ health expenditures are supplemented by national targeted programs. National health program funding encompasses seven programs in Ben Tre, eight in Quang Ninh, and 12 in Quang Tri. The amount transferred to communes depends on per capita norms (as with immunization) as well as special needs of the province (as with malaria). Local authorities indicate that allocation of national health programs to commune is based on plan prepared by health sector at the beginning of the year. Then targets of national programs are assigned to districts and communes. National health programs for the surveyed provinces mainly go to communes in the in-kind form on the basis of requests from districts and communes and on the projection of the previous year’s performance. The spending of the national health programs is not recorded in the commune’s budget. In Quang Tri, health officials said that cash in the national health programs was used for paying health staffs when they implemented the programs in communes. In the surveyed provinces, national targeted programs are supplemented by about 16-20 percent by the province (16 percent in Quang Tri and 20 percent in Ben Tre). Usually the surveyed districts manage the national health programs and the communes implement them in their area.

38. Sources for health expenditures vary from province to province (See Table 9).

39. Preparation of capital expenditure in surveyed provinces is straightforward with provinces’ role as prioritizing district proposals and submitting these for

16

consideration of the center. Amount of capital expenditures accounts for small portion of the total expenditures. In Nam Ha, these accounts for 6.2 percent of total expenditures in 1995. In Ben Tre, these accounts for 16 percent in 1994. Capital expenditures are used for financing provincial hospital and little is used for CHCs. In Ben Tre 700 million dong out of 5,013 billion dong is used to finance the rebuilding of 10 CHCs. In Quang Tri, each year the province tries to finance the rebuilding of 10 CHCs. In Ha Giang, the province was able to allocate funds for building 22 communes. Contributions from the people play an important role in repairing and building CHCs. In Nam Ha and Ha Giang, local authorities are able to mobilize people to contribute to the construction of CHCs while in Quang Tri and Ben Tre they are not. In general, facilities at CHCs are very poor. In Quang Tri, in some communes, there is no CHCs or CHCs do not possess any space. 40. In all surveyed communes, we noticed that at commune level, funds for health basically come from four sources including the NPF, provincial budget, voluntary contribution, and NGOs’ aids. Before 1995, the commune budget covered the salaries of commune health workers. According to a new government’s degree, from 1995 onwards, commune health staffs will be paid by province’s budget. But the implementation of this degree is very different across provinces, and even across districts in on province. In Quang Tri, in Gio Linh district this degree has been implemented at the beginning of 1995 but in Trieu Phong district this degree will be effected in 1996. In Nam Ha, health workers will be paid partly by the health center and partly by the commune.

41. Utilization of CHCs varies across the surveyed provinces. About five people visit the CHCs a day in Nam Ha while in Ha Giang the average number is 10. In all surveyed provinces, poor villagers come to the CHCs since they can buy medicine on credit and for treatment of simple illness. There is no fee at CHCs. In all communes, CHCs play a role of reselling drugs. CHCs buy drugs from province or district pharmacy companies and resell at a company’s price plus a markup for transportation (from 1 percent to 10 percent).

42. Rural Roads. In all surveyed provinces, transportation plays a very important role. Transportation expenditures account for the biggest portion of the total capital construction expenditures. In Table 6 and 7, we can see that in Quang Tri, transportation expenditures account for 4.0 percent of the province’s total expenditures in 1994 and 5.12 percent in 1995. Transportation expenditures in Ben Tre accounts for 6.88 percent in 1994 and 7.05 percent in 1995. In Ha Giang, these amount to 1.79 percent in 1994 and 10.19 percent in 1995. Transportation expenditure is the biggest budget line in the capital construction expenditures.

43. However, transportation budget is mainly spent on provincial roads and to a limited extent on district roads. In the surveyed provinces, the provincial authorities indicate that they supervises and manages budget for provincial roads. District authorities are responsible for the district roads. In Nam Ha, province provides 70 percent for construction of roads which link districts to districts.

44. For communal roads, in all surveyed provinces, road maintenance and construction are financed mainly by household contribution either in kind or in cash, and outside donors. In Ben Tre, households’ contributions account for 57.77 percent. In Quang Tri, in Gio Thanh commune, household contribution accounts for 76 percent. However, with households’ contribution, especially in the form of labor,

17

quality of roads is not good. In Quang Tri, all commune roads are ground roads while in Nam Ha, nearly all communal roads are concrete roads.

IV. RECOMMENDATIONS

45. Shortcomings. In the survey, we have seen some shortcomings of the budget system. (1) Revenue and expenditure projections from bottom-up are not stable and followed strictly. (2) Local authorities have tendencies of projecting low revenues in order at the year-end, the collected revenues exceed the planned revenues and local authorities have more revenues for other expenditures. At the same time they project high expenditures in order to get transfer from the higher levels of government. (3) There are many channels of providing fund for one target with the same purpose and at the same time there are many layers of authorizing funds. (4) The initiative role of local government in effectively utilizing assigned funds and mobilizing contribution is still low. (5) There is no mechanism of encouraging local government to raise revenues, reallocate adequately expenditure needs in order to reduce transfer from higher levels of government; and (6) the lack of transparency in the method of allocating investment expenditures.

46. Despite the fact that the Budget Law was adopted by the National Assembly in March 1996, implementing regulations need to be more specific and further define implementation procedures. New regulations should address the above issues.

18

ANNEX Commune-level Expenditures by Sector in Surveyed provinces

(Unit: thousand dong)

Gio Thanh commune, Gio Linh district, Quang Tri province (1995) Administration Education Health Road Water Social Relief Total

Source Value % Value % Value % Value % Value % Value % Value %

Central Government 4,300 5% 5472 100% 9,772 3.1%

Province 135,880 92% 70,588 87% 206,468 66.5%

District 2,300 3% 2,000 3% 4,300 1.4%

Commune 18,400 100% 18,400 5.9%

User fees 3700 3% 3,700 1.2%

Contribution 8000 5% 12,000 21% 20,000 6.4%

Other commune fees 0 0.0%

Donors 44,000 76% 44,000 14.2%

NGOs 4000 5% 4,000 1.3%

TOTAL 18,400 100% 147,580 100% 81,188 100% 58,000 100% 0 5472 310,640 100.0%

% of Total 5.92% 47.51% 26.14% 18.67% 1.76% 100%

Trung Hai commune, Gio Linh district, Quang Tri province (1995) Administration Education Health Road Water Social Relief Total



Province 161,755 93% 67,288 89% 0% 229,043 41.8%

District 4,000 1% 0% 4,000 0.7%

Commune 18,911 100% 3960 5% 0% 22,871 4.2%

User fees 0% 0 0.0%

Contribution 11490 7% 58,000 21% 0% 69,490 12.7%

Other commune fees 0% 0 0.0%

Donors 213,000 77% 0% 213,000 38.9%

NGOs 0% 0 0.0%

TOTAL 18,911 100% 173,245 100% 75,548 100% 275,000 100% 0 5472 100% 548,176 100.0%

% of Total 3.45% 31.60% 13.78% 50.17% 1.00% 100%

Trieu Thuan commune, Trieu Phong district, Quang Tri province (1995) Administration Education Health Road Water Social Relief Total


Central Government 7,600 3% 490 3% 93,625 96% 101,715 21.66%

Province 184,977 72% 8644.7 61% 0% 193,622 41.24%

District 30,105 12% 421 3% 20,000 29% 0% 50,526 10.76%

Commune 24,000 100% 18,000 7% 4680 33% 16,200 24% 4,000 4% 66,880 14.24%

User fees 11000 4% 0% 11,000 2.34%

Contribution 13760 5% 24,000 35% 0% 37,760 8.04%

Cooperative contributions

8,000 12% 0% 8,000 1.70%

Donors 0%

NGOs 0%

TOTAL 24,000 100% 257,842 100% 14,236 100% 68,200 100% 0 97,625 100% 469,503 100.00%

% of Total 5.11% 54.92% 3.03% 14.53% 20.79% 100%

19

Trieu Van commune, Gio Linh district, Quang Tri province (1995) Administration Education Health Road Water Social Relief Total


Central Government 8,000 7% 700 3% 134000 66% 24,000 77% 734,731 99% 901,431 79.57%

Province 88,029 79% 11,145 55% 99,174 8.75%

District 300 1% 10,000 5% 7,000 23% 17,300 1.53%

Commune 28,000 100% 4,000 4% 8000 40% 4000 1% 44,000 3.88%

User fees 645 1% 100 745 0.07%

Contribution 10200 9% 10,200 0.90%


Donors 60,000 29% 60,000 5.30%

NGOs 0 0.00%

0 0.00%

TOTAL 28,000 100% 110,874 100% 20,245 100% 204,000 100% 31,000 100% 738731 100% 1,132,850

100.00%

% of Total 2.47% 9.79% 1.79% 18.01% 2.74% 65.21% 100%

Quan Ba commune, Quan Ba district, Ha Giang province (1995)

Administration Education Health Road Water Social Relief Total


.Central Government 34125 11.5 52497 75.7 12620 100.0 99242 17.1

Province 80000 61.5 212126 71.4 13656 19.7 305782 52.6

District

Commune taxes 42026 32.3 42026 7.2

User fees 8155 6.3 57120 100.0 65275 11.2

Voluntary contribution

23950 8.1 15000.0 100.0 38950 6.7

Donors 26800 9.0 3237 4.7 30037 5.2

NGOs

TOTAL 130181 100 297001 100 69390 100 57120 100 15000 100 12620 100 581312 100

% Total 22.4 51.1 11.9 9.8 2.6 2.2 100

Thanh Van commune, Quan Ba district, Ha Giang province (1995) Administration Education Health Road Water Social Relief Total


Central Government 98050 37.7 145497 74.7 3300 100.0 246847 34.5

Province 85629 66.3 121176 46.6 46104 23.7 252909 35.4

District

Commune taxes 35696 27.6 35696 5.0

User fees 7920 6.1 55440 100.0 63360 8.9


14200 5.5 14200 2.0

Donors 26800 10.3 3237 1.7 30037 4.2

NGOs 72000 100.0 72000 10.1

TOTAL 129245 100 260226 100 194838 100 55440 100 72000 100 3300 100 715049 100

% Total 18.1 36.4 27.2 7.8 10.1 0.5 100

20

Ngoc Linh commune, Vi Xuyen district, Ha Giang province (1995) Administration Education Health Road Water Social Relief Total


.Central Government 81836 51.0 9981 44.6 91817 27.9

Province 52031 42.6 72014 44.8 10056 44.9 134101 40.7

District 12969 10.6 12969 3.9

Commune taxes 45180 37.0 45180 13.7

User fees 12000 9.8 20500 85.4 32500 9.9


6750 4.2 2000 8.9 3500 14.6 12250 3.7

Donors

NGOs 360 1.6 360 0.1

TOTAL 122180 100 160600 100 22397 100 24000 100 329177 100

% Total 37.1 48.8 6.8 7.3 0.0 0.0 100

Trung Thanh commune, Vi Xuyen district, Ha Giang province (1995) Administration Education Health Road Water Social Relief Total


Central Government 1549 0.7 76369 81.9 77918 18.9 Province 11000 16.5 150710 72.1 14520 15.6 176230 42.7 District Commune taxes 50974 76.4 50974 12.4 User fees 4770 7.1 6000 2.9 30000 69.0 40770 9.9 Voluntary contribution

50000 23.9 2000 2.1 13500 31.0 65500 15.9

Donors NGOs 875 0.4 360 0.4 1235 0.4

TOTAL 66744 100 209134 100 93249 100 43500 100 412627 100

% Total 16.2 50.7 22.6 10.5 0.0 0.0 100

Phong Du commune, Tien Yen district, Quang Ninh province (1995)

Administration Education Health Road Water Social Relief Total


.Central Government 3610 1.8 7600 59.3 11210 3.3

Province 162960 81.6 5220 40.7 168180 49.6

District

Commune taxes 51300 100.0 51300 15.1

User fees 4000 6.8 4000 1.2


33144 16.6 16000.0 100.0 49144 14.5

Donors 0 0.0

NGOs 55000 93.2

TOTAL 51300 100 199714 100 12820 100 59000 100 16000 100 0 0 338834 84

% Total 15.1 58.9 3.8 17.4 4.7 0.0 100

21

Hai Lang commune, Tien Yen district, Quang Ninh province (1995) Administration Education Health Road Water Social Relief Total


.Central Government 1110 0.5 1110 0.2

Province 174355 79.3 8040 75.1 182395 25.1

District 221943 53.4 221943 30.5

Commune taxes 92660 22.3 3200 1.5 1100 10.3 18777 100.0 116197 16.0

User fees 100000 24.0 16065 7.3 116065 16.0

Cooperative 1400 0.3 25000 11.4 1560 14.6 12000 100.0 50000 100.0 89960 12.4


0 0.0

Donors 0 0.0

NGOs 0 0.0

TOTAL 416003 100 219730 100 10700 100 12000 100 50000 100 18777 100 727210 100

% Total 57.2 30.2 1.5 1.7 6.9 2.6 100

Hung Dao commune, Dong Trieu district, Quang Ninh province (1995) Administration Education Health Road Water Social Relief Total


.Central Government 0 0.0

Province 165600 80.1 8388 16.5 173988 15.6

District 0.0 0 0.0

Commune taxes 532701 100.0 22990 11.1 42511 83.5 147674 80.8 19359 14.8 765235 68.8

User fees 0.0 18174 8.8 35000 19.2 53174 4.8

Cooperative 111024 85.2 8500 100.0 119524 10.7


0 0.0

Donors

NGOs 0 0.0

TOTAL 532701 100 206764 100 50899 100 182674 100 130383 100 8500 100 1111921 100

% Total 47.9 18.6 4.6 16.4 11.7 0.8 100

Tan Viet commune, Dong Trieu district, Quang Ninh province (1995) Administration Education Health Road Water Social Relief Total


.Central Government Province 110520 60.3 9645.6 35.0 120166 27.5 District 9324 6.4 52911 28.9 62235 14.2 Commune taxes 135385 93.6 14898 8.1 17932 65.0 31096 63.3 29268 100.0 3000 100.0 231579 53.0 User fees 5000 2.7 18000 36.7 23000 5.3 Voluntary contribution

Donors NGOs

TOTAL 144709 100 183329 100 27578 100 49096 100 29268 100 3000 100 436980 100

% Total 33.1 42.0 6.3 11.2 6.7 0.7 100

22

Thanh Thoi commune, Mo Cay district, Ben Tre province (1995) Administration Education Health Road Water Social Relief Total



Province 119,828 93% 8,642 6% 128,470 18.5%

District 9,642 7% 23,000 26% 32,642 4.7%

Commune 58,650 100% 18400 13% 34,700 39% 4570 2% 116,320 16.8%

User fees 4500 3% 32,100 36% 36,600 5.3%

Contribution 5050 4% 5,050 0.7%


Donors 0 0.0%

NGOs 7700 5% 7,700 1.1%

0 0.0%

TOTAL 58,650 100% 129,378 100% 146,384 100% 89,800 100% 0 270202 100% 694,414 100.0%

% of Total 8.45% 18.63% 21.08% 12.93% 38.91% 100%

An Dinh commune, Mo Cay district, Ben Tre province (1995) Administration Education Health Road Water Social Relief Total


Central Government 40000 9% 1326546 100% 1366546 69.2%

Province 342,065 73% 12600 14% 2600 0.20% 357,265 18.1%

District 14,675 50% 14,675 0.7%

Commune 57,545 100% 659 0.1% 4576 16% 22,500 25% 1000 0.08% 86,280 4.4%

User fees 76934 16% 53,680 60% 130,614 6.6%

Contribution

Other commune fees

Donors

NGOs 8000 2% 10000 34% 18,000 0.9%

TOTAL 57,545 100% 467,658 100% 29,251 100% 88,780 100% 0 1330146 100% 1973380 100.0%

% of Total 2.92% 23.70% 1.48% 4.50% 67.40% 100%

Minh Duc commune, Mo Cay district, Ben Tre province (1995) Administration Education Health Road Water Social Relief Total


Central Government 194,960 42% 1,000 1% 195,960 20.94%

Province 223,694 49% 60000 75% 85000 1963 11% 370,657 39.62%

District 11,106 14% 34,000 11% 5000 28% 50,106 5.36%

Commune 61,509 100% 2,618 1% 14,000 5% 600 3% 78,727 8.41%

User fees 38327 8% 176,631 57% 0% 214,958 22.97%

Contribution 600 3% 600 0.06%

Cooperative

Donors

NGOs 7700 10% 6920 100 10,000 55% 24,620 2.63%

0%

TOTAL 61,509 100% 459,599 100% 79,806 100% 309,631 100% 6920 100 18,163 100% 935,628 97.37%

% of Total 6.57% 49.12% 8.53% 33.09% 1.94% 100%

23

Loc Thuan commune, Binh Dai district, Ben Tre province (1995) Administration Education Health Road Water Social Relief Total


Central Government 75,000 14% 293,592 73% 368,592 32.60%

Province 294,860 57% 4,757 4% 15000 4% 314,617 27.83%

District 10,000 9% 15000 4% 25,000 2.21%

Commune 71,676 100% 1,849 0.4% 1123 1% 12,500 50% 18061 5% 105,209 9.31%

User fees 60950 11.7% 12,500 50% 73,450 6.50%

Contribution 0 0.00%

Other commune fees 1112 0.2% 59100 15% 60,212 5.33%

Donors 0 0.00%

NGOs 85000 16% 98500 86% 183,500 16.23%

0 0.00%

TOTAL 71,676 100% 518,771 100% 114,380 100% 25,000 100% 400753 100% 1,130,580 100.00%

% of Total 6.34% 45.89% 10.12% 2.21% 35.45% 100.00%

Documents

LOCAL FINANCE SURVEY REPORT - The World Bankdocuments.worldbank.org/curated/en/... · the provincial authorities have some power to determine the priority of expenditures among projects