GREEN FISCAL REFORM FOR ENVIRONMENTAL PROTECTION AND SUSTAINABLE DEVELOPMENT IN VIETNAM: INITIAL STEPS AND PROSPECTS

Abstract

Green fiscal reform (GFR) is a new concept which has greatly attracted concern and acceptance among policy makers and economic researchers in industrialized countries in Europe and Japan recently. According to this viewpoint, state budget and its items are not simply an allocation of the tax revenues for different public programs but also imposing considerable impacts on the environmental status and on the operation of economic sectors towards sustainable development. This paper thus has introduced the concept of Green fiscal reform and its theoretical bases, and reviewed recent “green” changes in the State budget structure in Vietnam in order to increase financial investment in environmental protection. The paper then also recommends a green budgeting life cycle and practical considerations to effective implementation for planning anual green State budget towards sustainable socio-economic development.