Proactively saving expenses, Quang Nam calculates and manages a balanced budget

Increase revenue and expenditure budget

Quang Nam announced the total local budget revenue in 2025 of more than 34,828 billion VND. This budget includes revenue from higher-level budgets, transferred revenue, and revenue from non-refundable aid. The total estimated local budget expenditure is more than 35,205 billion VND. The local budget deficit is insignificant, with only about 377 billion VND "compensated".

The total budget revenue in 2025 has been set at VND25,000 billion (VND4,200 billion in import-export tax). However, the amount of import-export tax revenue is only related to the local economic "achievements" in terms of growth rate, and does not greatly affect the resources for local spending compared to domestic budget revenue (VND20,800 billion). According to the analysis of the Department of Finance, the estimated domestic revenue increased by 3.5% compared to the estimate in 2024, but was only 91.2% of the actual revenue in 2024.

Mr. Dang Phong - Director of the Department of Finance, or Mr. Nguyen Van Tiep - Director of the Tax Department both confirmed that it is difficult to accurately measure the developments of the market and the economy. It is not easy to collect the expected revenue, when there are still too many unfavorable factors affecting the economy, affecting revenue sources.

New production capacities have not been able to generate revenue, and there are few additional addresses to collect taxes. Stimulus policies (tax reduction, tax deferral, 50% reduction in registration fees for domestically produced and assembled cars...) are only in the proposal stage, and it is not known whether they will be renewed or not.

Whether the domestic tax revenue will be sufficient or increase cannot be accurately predicted. And of this revenue, the local budget will only receive more than 17,412 billion VND. On the contrary, budget expenditure will not decrease but may increase, when in 2025 there are too many events that require a lot of resources to implement.

In addition, Quang Nam regulates 18% to the Central Government, the locality must balance itself, ensure resources to pay debts, implement well social security policies, reduce poverty... That self-guaranteed budget is very large, will create no small pressure on management, operation, and balancing of local budget.

Mr. Nguyen Van Tiep said that he will regularly monitor market developments and budget collection progress. At the same time, he will analyze and evaluate the impact of tax policies, as well as market impacts on state budget revenue, especially revenue from automobiles, hydropower, Nam Hoi An... to promptly advise the Provincial People's Committee to consider and give appropriate instructions. Localities have been required to increase budget revenue by at least 5-7% compared to 2024.

The tax authority has "advised" the Provincial People's Committee to propose to the Central Government to continue implementing policies (extension of special consumption tax payment, reduction of land rent, car registration fee, etc.). Removing difficulties in real estate, adjusting land prices appropriately, preventing tax losses in real estate, minerals, transportation, construction, related transactions, e-commerce, night-time business, etc.

Relieving the burden of balancing the budget

The pressure to balance the local budget always weighs heavily on the shoulders of the local government. Faced with this pressure, Quang Nam has been forced to review and balance the budget. All programs, plans, and resolutions are considered, with investment only reserved for urgent and feasible projects.

Reduce the proportion of regular expenditure, direct resources to development investment, including investment in educational facilities. Photo: TRINH DUNG

Restructure regular expenditures, transfer resources to development investment. Sectors, levels and localities must proactively review financial resources and budgets, must know how to quantify works and projects, and not let projects and proposals arise outside of the plan.

A budget management and operation mechanism has been promulgated. Localities are required to arrange a minimum budget reserve of 2% of total budget expenditure at each level. If the revenue does not meet the estimate, a plan must be developed to adjust expenditure accordingly, cutting or extending expenditure tasks that are not really urgent.

Departments, branches and units shall base on the allocated budget estimates to implement programs, plans and projects. The Provincial People's Committee shall consider and resolve truly urgent expenditures that exceed the balance capacity in the budget estimates assigned to the units.

Conferences, seminars, and celebrations are arranged effectively and economically. Closely monitor budget expenditure management, proactively arrange regular expenditures, prioritize important tasks, ensure resources to implement social security policies, and adjust salaries.

Do not let the situation of unpaid salaries of cadres, civil servants, public employees, expenses for human resources and social security policies according to the regime occur. Proactively save regular expenses to supplement local investment in urgent projects, orient to reduce the proportion of regular expenses and increase investment expenses.

Localities should step up the implementation of spending-saving solutions, especially for investment-related public expenditures, to allocate for investment. On February 17, 2025, the Provincial People's Committee issued a document requesting localities and units to strengthen budget collection management.

Actively and economically manage budget expenditures, tighten discipline, and improve the efficiency of state budget use. Resolutely cut unnecessary regular expenditures to reserve for development investment and social security...

Mr. Dang Phong said that budget expenditures will be closely followed according to the budget estimates and collection progress. Monthly and quarterly, the revenue capacity will be assessed to proactively manage and balance budget expenditures. No matter what happens to the economy, the locality will balance the budget and will not cut any expenditures in the approved budget.

If, due to force majeure, the budget revenue is expected to decrease, a plan will be proactively developed to adjust and reduce expenditure accordingly. Only cut or extend expenditure tasks that are not really urgent. Localities and agencies will not propose to issue policies that are lacking, incorrect, unrealistic, or lack resources for implementation.

Source: https://baoquangnam.vn/chu-dong-tiet-kiem-chi-quang-nam-tinh-toan-dieu-hanh-can-doi-ngan-sach-3149222.html