Estimated budget for education in 2021 is over 299 trillion VND

That is one of the contents of the report on educational activities and implementation of the 2021 education budget of the Government sent to National Assembly delegates.

Through the report, the Government pointed out a number of shortcomings and limitations such as the rate of state budget expenditure for the entire education sector in 2021 only reached about 17.3% of the national budget expenditure, not reaching the prescribed rate.

The proportion of human expenses (salaries and salary-related expenses) still accounts for a large proportion of total regular expenses at educational institutions; many localities have not yet ensured the minimum ratio of 18% for professional expenses as prescribed in Decision No. 46/2016/QD-TTg, causing difficulties in ensuring the quality of education in localities. The procurement of additional equipment as required by the 2018 General Education Program is still slow.

Regarding the implementation of the 2021 revenue estimate, the total revenue of educational and training institutions of localities and ministries and branches (total revenue of the sector) in 2021 is estimated at VND 38,550 billion, reaching about 85% compared to the implementation in 2020. In particular, for localities: the estimated total revenue of education and training in 2021 is VND 15,905 billion (reaching 82% compared to the implementation in 2020). For ministries and branches: in 2021, the revenue of training institutions also decreased (estimated to decrease by about 13% compared to the implementation in 2020); in particular, the revenue of units under the Ministry of Education and Training is estimated to reach VND 9,875 billion in 2021, reaching 87% compared to the implementation in 2020.

According to the Government, due to the impact of the Covid-19 pandemic and natural disasters, storms and floods, the revenue of units in 2021 decreased compared to 2020. The actual study time decreased, the revenue from tuition fees is estimated to decrease by about 13% -18%. The number of university students tends to decrease gradually due to the increase in vocational training and college education (except for the increase in pedagogical students in the past 1-2 years).

The total estimated state budget expenditure in 2021 for the entire education sector (including regular and investment expenditures) is VND 299,325 billion, down 4.7% compared to the estimate in 2020. The proportion of state budget expenditure for the education sector in 2021 is 17.3%. This proportion in the entire 2016-2020 period is between 17.4% and 18.5% (lower than the prescribed level of 20% of the Education Law).

Of the total state budget expenditure estimates for the entire education sector in 2021, the regular expenditure estimate approved by the National Assembly is VND 249,971 billion, accounting for 83.5%. According to the consolidated reports of 63 Departments of Education and Training, it is estimated that the implementation of the regular expenditure estimate for the entire education sector in 2021 will reach 100% of the estimate approved by the National Assembly.

The Government also pointed out a number of problems and difficulties in balancing the allocation and implementation of funding sources for education and training.

Regarding the roadmap for reducing regular expenditures, the Government said that the education sector has the characteristic of having most of its budget spent on salaries. If regular expenditures are reduced according to the roadmap in Resolution No. 19-NQ/TW dated October 25, 2017 of the Central Government, it will not be able to ensure the budget for salaries as well as professional expenses, expenses for implementing policies and regimes for students; at the same time, there will be a lack of resources to solve problems such as the shortage of teachers, the need to train and foster teachers, and ensure material facilities to promptly implement the 2018 General Education Program.

Regarding the roadmap for calculating the price of education and training services, the Government said that education and training is a field that affects social security. If the roadmap is followed until 2021, the full cost must be calculated according to the spirit of Resolution No. 19-NQ/TW of the Central Committee, then tuition fees will increase quite high, causing pressure on students and their families, affecting the learning opportunities of the majority of students.

Ministry of Education and Training directly manages 2.2%

According to the Government's report, in 2021, the Ministry of Education and Training directly managed 2.2% of the total regular budget expenditure for education, ensuring about 70% of the minimum requirements as proposed by the Ministry. This puts pressure on the implementation of a number of major tasks of the sector such as: implementing the 2018 General Education Program; implementing more than 30 projects and tasks approved by the Government.

The total planned budget for 2021 to implement policy payments is VND 891.5 billion. However, in reality, only 76.5% has been allocated. In addition, some important policies and regimes for learners have not been allocated separately (especially the pedagogical compensation fund implemented according to the new regime stipulated in Decree No. 116/2020/ND-CP; policy scholarships and regimes for ethnic minority preparatory students), causing difficulties in timely and full payment of regimes for learners according to regulations. In particular, due to the impact of the Covid-19 epidemic, some educational institutions do not have a source of revenue to pay in advance, leading to learners reporting and making recommendations to the Ministry of Education and Training.

In the context of the complicated developments of the Covid-19 epidemic, students have to take a long break from school, leading to a sharp decrease in revenue for public service units; most units face difficulties in ensuring the maintenance of apparatus operations, teaching activities, and difficulties in balancing regular expenditures because the nature of the education sector is mainly to use revenue to offset expenditures.

According to the Government report, as of June 30, 2021, the entire education sector has disbursed more than VND 2,513 billion in regular capital, reaching 46% of the annual plan, and is estimated to achieve 100% of the whole year. The Ministry of Education and Training directed units to proactively cut at least 50% of conference costs and save an additional 10% of regular expenses to supplement funding for Covid-19 prevention and control.

Faced with the complicated developments of the Covid-19 pandemic, educational institutions have proactively adjusted their apparatus and methods of operation to save costs and shift budgets to essential activities.

Regarding the supplementary budget for state budget expenditures in 2021, the regular expenditure estimate for 2021 of the Ministry of Education and Training was assigned more than 5,430 billion VND, a decrease of more than 850 billion VND compared to 2020. Many budget items have not yet met the minimum needs, so the Ministry proposed to supplement the remaining budget of more than 721 billion VND.

However, the Government has just added more than 293 billion VND to the 2021 budget for the Ministry of Education and Training, nearly 428 billion VND short of the proposal.