The SAV held a press briefing in Hanoi on July 1 to announce the results of an audit of the 2007 State budget. According to the results, most localities’ collection fulfilled or even surpassed budget estimates, and in 30 localities’ collection was 10 percent above target.

Ministries, departments and localities were found to have used State funds properly in line with the regulations of the State Budget Law. Spending for administrative management in 2006 was VND18,515 billion, up 9.4 percent compared to estimates but lower than the figure in 2005.

Regarding spending for investment development, 7 out of 29 provinces and cities which were audited did not fulfil their targets due to slow land clearance, and scattered capital allocation.

Land clearance of most projects implemented slowly

Land clearance for most audited projects was implemented slowly and investors and management boards lacked effective measures to direct and organise the implementation, causing losses for the State budget.

According to a report of the Ministry of Finance, total liabilities in capital construction by December 31, 2006 was VND3,674 billion.

In 2007, the SAV audited 225 out of 385 member enterprises of 19 State-owned corporations, 202 enterprises of which have made a profit and only 23 had suffered losses.

Le Minh Khai, deputy director of SAV, said that auditing results showed that financial management has been improved. The issuance of the State Auditing Law has helped improve awareness of ministries and departments about State auditing, he said.