1 MINISTRY EDUCATION AND TRAINING PUBLIC EXPENDITURE In education Hµ Néi – 28 June 2006 NguyÔn V¨n Ng÷ Director Planning and Finance Department

2 Structure Introduction and Overview Background and Policies Within The Education Sector Financing of Education Service Performance Planning and implementing of sector priorities Conclusions and recommendations

3 Financing for Education Education has received first priority, investment to education is a mean for poverty deduction. Education share of public expenditures increasing from 14% 1998 to 16.9% 2002, 18,4%/ 2005 and 20% by 2008

4 INVESTMENT IN EDUCATION State Budget for education Total Education State Budget % GDP 3,74,24,935,045,87- % total state budget expenditure s 15,015,216,118,019,020,0

5 Proportion of Education Sector Expenditure Total Public Expenditure

6 Share of Education and Training Expenditures Share of Education and Training Expenditures remains the same. Recurent Expenditure as 73%, Infrastructure Expenditure as 27%

7 Financing of Education Spending Decentralized funding State budget management decentralized, greater autonomy to local government and educational and training institutions (Decree No.10 of 2001 and Decree No.43 of 2006) Local authorities are responsible for budget allocations within the province and to local educational and training institutions.

8 Financing of Education Spending Private contributions Although the absolute amount of private expenditure has grown in all sub- sectors, the share of state budget has accelerated reflecting the Government’s view of education as the top priority in public expenditure.

9 Sharing structures of state and private in education (%) Level Primary Education State subsidy Parent contribution Lower secondary Education State subsidy Parent contribution Upper Secondary Education State subsidy Parent contribution Nguồn: WB, Điều tra thu nhập hộ gia đình

10 Funding Sources of Primary Education Expenditures (%)

11 Funding Sources of Lower Secondary Education Expenditures (%)

12 Funding Sources of Higher Secondary Education Expenditures (%)

13 Service Performance Service access Pupil numbers continues to increase. Net Participation Rate has increased in all sub-sectors

14 Number of Pupils at Sub-sectors (thousands)

15 Net Participation Rate at Schools

16 Service Performance Equity N arrowing gap, particularly in Primary, but there are still gaps of enrolment rates between rich and poor, especially in lower and upper secondary education In recent years, the gender gap in Education and Training has narrowed

17 Variation in Enrolment Rates by Socio- economic Category – Lower Secondary Education

18 Variation in Enrolment Rates by Socio- economic Category – Higher Secondary Education

19 Private Costs in Education Policy for exemption and reduction of tuition fee for poorest groups Private financial contribution is an important part of total expenditures in education. Share of education and training expenditures by households is the same in all income groups Expenditures for extra curriculum is higher in richer quintile

20 Elements of Private Costs in Primary education

21 Service Performance Service Efficiency PTR has been decreasing in all sub- sector

22 Service Performance Service quality and effectiveness High literacy rate compares with other higher income countries in the region P romotion rates increased. Repetition and drop-out rates of primary and lower secondary education is decreasing.

23 Planning and implementing of sector priorities Link strategies and budgets in a medium term framework (MTEF) Ensure efficiency and transparency of resource allocation Improve management skills of staff for dynamic and continuous change of the sector

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25 Conclusions Continuous increase of budget for education while school age population decrease is an opportunity for improving education quality, equity and effectiveness Options for effective utilization of resources for education to optimize educational outcomes.

26 Recommendations 1. Moving to f ull day schooling, reduce unregulated user charges, and improving teacher qualifications and classroom infrastructure, particularly in the poorest localities. 2. Conduct an overall review of user fees as a basis for options to implement MTEF in education 3. Review education distribution norms and ensure minimum service standards provision to more disadvantaged and remote areas

27 Recommendations 4. Echance MOET ’ s management capacity, delegating more autonomy to local levels 5. Increase budget for education, continues support the national targeted program in education (NTPs) 6. Review teachers ’ deployment policy, moving toward assessing teacher ’ s performance based on teacher competencies and classroom practices that links to payment to teachers.

28 Recommendations 7. Priority should be given to the development of standards, exams tests and roadmap for implementation 8. Improve management skills and information systems at every level in education sector

29 Thank you