The Party Executive Committee of the Provincial People's Committee met to listen to a report on the draft project on self-balancing the provincial budget.

In recent years, Binh Thuan province's socio-economic development has been quite rapid, creating initial changes in the renewal of the growth model. Production capacity and economic scale have increased significantly. Essential infrastructure systems have been invested in, physical and technical facilities have been strengthened; cooperation and linkages have been expanded to promote better exploitation of the province's potentials and advantages, especially in the energy industry, tourism, and agriculture. Notably, the appearance of urban and rural areas, including ethnic minority areas, has improved a lot, and people's lives continue to improve...

Chairman of the Provincial People's Committee Doan Anh Dung chaired the meeting.

Despite rapid development in recent years, Binh Thuan's position in the national economy as well as in the South Central Coast region is still modest. In 2021, the province's contribution to the country's total GDP reached only 1.04%; the proportion of domestic state budget revenue accounted for 0.78% of the total state budget revenue of the country and by 2022, domestic revenue accounted for about 0.61% and in 2023 accounted for 0.65% of the total state budget revenue of the country... In order to create conditions for localities to be more proactive in determining local budget resources to carry out spending tasks according to the Central's decentralization. The development of a project to balance the budget of Binh Thuan province by 2025 and the period 2026 - 2030 is necessary.

The draft project includes two options for self-balancing the budget. Option 1 is based on the local budget expenditure needs to determine the State budget revenue. Based on the local budget expenditure plan that has been developed, to ensure the balance of revenue and expenditure, it is expected that domestic revenue in 2024, 2025 and the period of 2026 - 2030 will reach 165,303 billion VND, including tax, fee and other revenue of 142,545 billion VND. Land use fee revenue is 6,374 billion VND and lottery revenue is 16,384 billion VND. Option 2 is based on the State budget revenue capacity to determine local budget expenditure. Based on the domestic revenue plan for 2024, 2025 and the period of 2026 - 2030 according to the actual local resources developed by the Tax Department and the domestic revenue according to the socio-economic development orientation of the province, the local budget adjustment revenue enjoyed according to the annual decentralization only ensures a part of the local budget expenditure estimate that has been built, not enough resources to ensure the balance of local budget expenditure. Therefore, to ensure the balance of local budget revenue and expenditure, it is necessary to review and adjust the expenditure tasks of the local budget.

At the meeting, delegates focused on assessing the advantages and disadvantages of the two options and based on domestic revenue, Binh Thuan will balance its budget revenue and expenditure in the context of many challenges in budget management and serving the needs of socio-economic development. With an average domestic revenue growth rate of 9% - 10%/year in the period 2021 - 2030 or according to the option of domestic revenue according to the GRDP mobilization rate into the budget reaching 8%, self-balancing budget revenue and expenditure according to option 2 will be feasible. According to delegates, to increase budget revenue, there needs to be a solution to attract investors and large corporations to invest in the province. In addition, it is necessary to focus on developing 3 pillars: industry, tourism and agriculture ; in which we try to increase the occupancy rate of secondary investors in industrial parks and clusters, focus on removing difficulties and obstacles so that projects can soon be implemented and put into operation to generate revenue from the projects...

Concluding the meeting, Chairman of the Provincial People's Committee Doan Anh Dung emphasized: This is an important and urgent project assigned by the Provincial Party Committee Standing Committee. Based on the opinions of the delegates attending the meeting, the Department of Finance is requested to absorb and complete the draft, and soon submit it to the Provincial Party Committee Standing Committee for comments. In particular, in terms of approach, it is necessary to closely follow the targets and tasks set out in the Resolution of the Provincial Party Congress, determine specific time frames, set out appropriate goals and solutions. On the other hand, it is necessary to carefully analyze revenue sources to balance revenue and expenditure, analyze revenue forecasts clearly, the roadmap must be feasible, factors to sustain revenue sources, maximize the exploitation of forecasted and future revenue sources, build a suitable revenue structure... Along with the above issues, it is necessary to review and update plans to unify data, carefully analyze difficulties and advantages affecting revenue and expenditure in the following years, focus on the potential advantages of the province to calculate revenue balance. The project needs to develop scenarios, propose many different solutions and tasks, and set out a roadmap to strive for. Regarding determining the time of self-balancing, it is basically agreed that in the period of 2026 - 2030, the province will balance its budget. Regarding solutions, it is necessary to maintain the stability of existing revenue sources, while creating new sustainable revenue sources, paying special attention to revenue sources with large proportions such as non-state revenue, revenue from foreign-invested enterprises, lottery revenue, environmental protection, etc.

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