Factors Affecting State Budget Revenue and Local Expenditure in Long An Province

Abstract

The aim of this article is analyzing the determinants of government budget revenue as well as local expenditure sources of Long An province during the period from 1995 to 2021. By using the method of Vector Auto Regression (VAR), the research results indicate that factors including gross regional domestic product per capita (GRDP), population rate, agricultural contribution rate, trade openness and the scale of foreign direct investment (FDI) have influences on budget revenue of this province. Meanwhile, GRDP, FDI, total investment capital implemented in the area and the local debt ratio are factors affecting the budget balanced expenses of Long An province. Moreover, some solutions relating to restructuring and managing provincial budget are also suggested based on the results in this paper.