STATE BUDGET ALLOCATION POLICY FOR NEW RURAL CONSTRUCTION IN VIETNAM

Abstract

Developing rural areas is an essential task in the socio-economic development process in countries. The state's role in rural development is critical, as reflected in the investment of funds and the promulgation of rural development policy institutions. Depending on the specific circumstances of countries, the state invests funds from the state budget for rural development in different measures and ways. Through investing large amounts of money and promulgating policies on budget allocation, management, and use, rural areas in many countries have made essential developments. In Vietnam, allocating the state budget to serve the construction of new rural areas is an essential macro policy of the state to invest in infrastructure, develop the rural economy, eliminate hunger and poverty, improve material life, and raise the spirit of the people. The state has issued a policy to allocate resources from the state budget for new rural construction to comprehensively implement new rural criteria, creating a premise to attract capital from other areas. However, in recent years, allocating the state budget for new rural construction in Vietnam has faced challenges because the need for investment capital for new rural construction is substantial; while the state budget is limited, attracting investment from other areas still needs improvement. State budget allocation policies need to be innovated so that funds allocated from the state budget are concentrated and practical, meeting the funding needs for long-term and sustainable new rural construction. This article addresses the issue of state budget allocation policies for new rural construction and proposes a complete solution.