EXAMINING LOCAL BUDGET AUDITS IN VIETNAM’S TWO-TIER GOVERNANCE MODEL

Abstract

The State Budget Law (SBL) 2025 will take effect from 2026, introducing many changes in the decentralization and allocation of budget authority between the central and local governments, particularly suited to the two-tier local government model. The law provides clearer regulations on revenue sharing, expenditure responsibilities, increases the local government’s borrowing limit, shortens the budget settlement period, and simplifies administrative procedures. These changes significantly impact the auditing of local budgets (LB) and budget settlement reports, requiring the State Audit Office (SAO) to adjust its organization and audit methods to align with the new model