Publicize State financial statements: Opportunities for management and supervision

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The State financial statements provide information about the database and the financial results of operations and cash flows.

This is highly appreciated because it is the first time that the public, the business community and international organizations have a chance to know the Financial "Health" of the State openly, transparently and formally.

Increasing transparency and reducing corruption

The Ministry of Finance has conducted a survey about a draft Decree of the Government on State financial statements. Accordingly, from 2018, the Ministry of Finance and local authorities will publicize annual financial statements for the business community and people to know and scrutinize. Specifically, the publication of State financial statements will be conducted in two levels: the State (the Ministry of Finance) and the localities, which is published in the electronic portal. Particularly, the Ministry of Finance must also conduct printed publication.

Speaking to a reporter of the Customs Newspaper, Dr. Nguyen Duc Do, the Deputy Director of the Institute of financial economics, under the Ministry of Finance said: "This is a breakthrough in the management and administration of the Government, which meets the requirements of modern management, in accordance with accounting standards and international practices. The draft Decree stipulates that State financial statements should contain more important issues such as the value of State assets; debts and payables, and capital and funds for operations and cash flows. This information which has not been publicized before is highly appreciated ".

Dr. Nguyen Duc Do added that in the current context, we needed a transparent State budget in order to ensure the economy operates efficiently and avoid putting the economy into debt crises or inflation due to large expenditures. Therefore, we should understand the sources of revenues, expenditures and the State's debts. This requires details and transparency in accordance with international standards. Moreover, when people oversee the implementation of revenues and expenditures, the Ministries, Departments and localities will consider using their budget more carefully to reduce losses or waste of money.

"If the information about property and State currency is publicized, people will pay more attention. Meanwhile, the leaders of State agencies will use the State budget more carefully, closely managing to reduce losses and corruption. In addition, people have a chance to know how effectively their taxes are being used. When the Decree on State financial statements takes effect, the Government will have more tools to manage and people have more opportunities to monitor and know the truth about National Finance. At the same time, publicizing local financial statements is also the basis for the evaluation of the competitiveness index of each localty, ensuring transparency "said Dr. Nguyen Duc Do.

According to many economic experts, publicizing the State financial statements is the demand of the Vietnamese people, the business community in Vietnam and foreign investors and international organizations. If the information is provided reliably, Vietnam will attract foreign investment easier. Moreover, the State’s debts will have favorable conditions such as duration, interest rate or loan amount, etc.

Information attached to accountability and sanctions

In addition to the positive impact of publicizing financial statements, there are many concerns about the level of transparency of information sources and mechanism for monitoring financial statements. Dr. Nguyen Duc Do stressed: "There is a sad reality in our country that we don’t have "the culture of responsibility". The fact has shown that without attaching specific responsibilities to individuals and organizations in the implementation of the State's jobs, the operations of the State will not be promoted effectively at all levels. Thus, if the information is provided, it may be delayed, inaccurate or incomplete".

Mr. Nguyen Duc Do said that for these rules to be strictly enforced, we should first focus on managing all expenditures and revenues of the Government and the Ministry of Finance at the central level and the local level. This will ensure the information related to the Government's expenditures and revenues is provided in full and prevent the Ministries or Departments from blaming each other in providing information.

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Besides, in order to ensure consistency, financial forms and accounting tables should be designed in accordance with international standards. The most important thing is that we should attach accountability and sanctions to individuals and organizations when publicizing information. Thus, publicizing State financial statements will be smooth from the State level to the provincial level.