Proposal to transition to special mechanisms in 5 localities after merger

View of the meeting. Photo: Doan Tan/VNA

Presenting the Report, Minister of Finance Nguyen Van Thang stated that, up to now, there are 10 localities nationwide: Hanoi, Hai Phong, Thanh Hoa, Nghe An, Hue, Da Nang, Khanh Hoa, Dak Lak (related to Buon Ma Thuot city), Ho Chi Minh City and Can Tho that are applying special mechanisms and policies according to separate laws and resolutions of the National Assembly.

Implementing Resolution No. 60-NQ/TU, 6/10 of the above localities will be directly affected by the organization of 2-level local government, including: Hai Phong, Da Nang, Khanh Hoa, Dak Lak (related to Buon Ma Thuot city), Ho Chi Minh City and Can Tho.

The merger of provincial-level administrative units and the termination of district-level administrative units lead to changes in geographical boundaries, scope of management, legal status, population size, socio -economic development situation, etc. of localities. This poses an urgent need for transitional regulations on the continued application of specific mechanisms and policies currently being implemented in localities subject to rearrangement to ensure continuity and stability of legal regulations in management, operation and socio-economic development in these localities.

Therefore, the Government proposes that the National Assembly allow localities after the merger of provincial-level administrative units (including Hai Phong, Da Nang, Khanh Hoa, Ho Chi Minh City and Can Tho) to continue implementing the specific mechanisms and policies that the National Assembly had allowed to be implemented in the localities before the merger of provincial-level administrative units. At the same time, allow the corresponding new communes and wards in Buon Ma Thuot city, Dak Lak province, after the implementation of the arrangement of commune-level administrative units, to apply the specific mechanisms and policies that the National Assembly had allowed to be implemented.

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai. Photo: Doan Tan/VNA

At the meeting, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai presented a report examining this content. Accordingly, the Committee found that, in reality, allowing the transition to apply some specific mechanisms and policies in localities after the administrative unit arrangement is not simply a matter of expanding the scope of application of specific mechanisms and policies in some localities, but will be related to many aspects of the economy and budget.

Therefore, the Appraisal Agency recommends that the Government direct attention to assessing the impact of policies to ensure the maintenance of the principle of balanced revenue and expenditure in accordance with the State Budget Law. At the same time, properly implement the Conclusion of the Politburo: "summarize and evaluate specific mechanisms and policies for localities (after completing the merger and consolidation) to adjust and supplement them to suit the new situation or legalize clear issues that have been tested in practice for nationwide application" in accordance with the requirements in Document No. 14708-CV/VPTW dated May 5, 2025 of the Central Office of the Party.

In addition, there are suggestions that for cities applying special mechanisms and policies to merge into provinces, it is necessary to re-determine the regulation ratio to account for and divide the central budget and local budget. There are suggestions to change the name of the Resolution's content to "... the transition to applying a number of special mechanisms and policies that have been allowed by the National Assembly to be implemented after restructuring the apparatus and expanding administrative boundaries in a number of localities according to the policies of the Party and State".

According to VNA

Source: https://baohoabinh.com.vn/274/201183/De-xuat-chuyen-tiep-co-che-dac-thu-tai-5-dia-phuong-sau-sap-nhap.htm