The impacts of budget policy on economic growth of cities and provinces of the Mekong river delta (2005-2018)

By Nguyen Vo Hoang (VNP 26)

Supervisor: Dr. Truong Dang Thuy

Abstract:

The Mekong River Delta region has a very important position and role in the economic development of Vietnam. Over the years, the Party and State have issued resolutions and policies for socio-economic development of the Mekong Delta, but the implementation of these resolutions and policies in fact have not met the development requirements of this delta. This paper evaluates one of the government policies and its impact on the economic development of the Mekong Delta region. From there, the paper proposes solutions to increase the effectiveness of the policy implementation, in order to promoting the economic development of the Mekong Delta region. One of the most significant public policy instruments is public budget policy, or government budget policy and this study determine the impact of budget policy on 13 Mekong Delta cities provinces from the period 2005 to 2018. The result pointed out that maybe the spending of local Government on capital expenditure was too much during this period and thus lowering economic growth. The second reason can be posed to explain this result, which is the inefficiency in the capital management of the local Government.