Survey to perfect financial mechanism in new model

BAC NINH - On the morning of October 21, the survey delegation of the Standing Committee of the Bac Ninh Provincial People's Council, led by Comrade Lam Thi Huong Thanh, Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Council, worked with representatives of 16 communes in the districts of Lang Giang, Hiep Hoa, Tan Yen, and Yen The (old) on the implementation of financial and budgetary tasks before the regular meeting at the end of 2025.

Also attending were representatives of the Department of Finance, Bac Ninh Tax, Committees of the Provincial People's Council, Office of the National Assembly Delegation and the Provincial People's Council.

Working scene.

At the working session, representatives of the People's Committees of the communes: Yen The, Bo Ha, Tam Tien, Lang Giang, Tien Luc, Kep, My Thai, Tan Yen, Phuc Hoa, Nha Nam, Ngoc Thien, Quang Trung, Hiep Hoa, Hop Thinh, Hoang Van and Xuan Cam reported on the results of implementing the budget revenue and expenditure estimates, the public investment situation, basic construction debt in 2025, the work of building the budget estimate for 2026 and the expected public investment plan for the period 2026 - 2030.

Currently, localities have basically fulfilled their assigned budget revenue and expenditure targets, ensuring resource balance, effectively implementing regular expenditure and development investment tasks. Many communes have proactively restructured expenditures, prioritizing capital for key projects and social security projects, and strictly implementing financial discipline and order.

The communes of Tan Yen, Phuc Hoa, Lang Giang, Tien Luc, and Nha Nam have issued resolutions on the medium-term public investment plan for the 2026-2030 period, reviewed the list of transitional projects, and started new projects to ensure compliance with the provisions of the Law on Public Investment.

In addition to the achieved results, the communes still reported many difficulties and obstacles in the process of implementing financial and budgetary tasks, especially after the implementation of administrative unit arrangement. The regular expenditure allocation norms according to the new draft resolution of the province are still low, not meeting the operational requirements of communes with large scale, large population, and increasing workload.

Some communes lack specialized staff in the field of finance and accounting; revenue from land use fees is unstable; debts from basic construction are still outstanding; some transitional projects have not been allocated enough capital for settlement. Funding for public expenditure tasks, especially education , national defense, security, social security, and the environment only meets about 25-40% of actual needs.

Representatives of the communes: Nha Nam, Phuc Hoa, Hiep Hoa proposed that the province consider adding a special budget to support the activities of local governments at two levels and political and social organizations at the grassroots level, because the current budget (about 100 - 115 million VND/commune/year) is not enough to maintain the activities of dozens of villages and residential areas after the merger.

The communes also proposed adjusting the ratio of land use fee and land rent revenue sharing, allowing communes with plans to become wards to enjoy 100% of this revenue to increase initiative in infrastructure investment.

Localities requested the province to soon announce the public investment capital plan for the 2026-2030 period, issue specific instructions on the regular spending mechanism for militia, police, and grassroots security and order protection teams; at the same time, add criteria outside the norm for special tasks such as national defense drills, operating incinerators, repairing canals, and intra-field roads, etc.

Discussing and explaining the above contents, representatives of the Department of Finance and Taxation of Bac Ninh acknowledged and shared the difficulties of localities in budget management after the merger, especially in the transition period when implementing the 2-level local government model. Further clarifying some contents on the principles of building regular expenditure norms, emphasizing the budget allocation based on criteria of population, area and characteristics of each commune. At the same time, committed to continue reviewing and adjusting to suit the reality after the Provincial People's Council passed the new resolution. Regarding recommendations related to revenue decentralization, public investment mechanism and handling of basic construction debt, representatives of the Department of Finance said that they would synthesize and report to the Provincial People's Committee for consideration and adjustment, ensuring compliance with the provisions of the State Budget Law and creating space for communes to proactively use resources to carry out development tasks.

The members of the survey team directly discussed and clarified the above contents, requesting the leaders of the communes to continue to review and compile specific statistics on revenue, expenditure, expenditures exceeding the norm, the list of basic construction debts, and public investment capital needs for the period 2026 - 2030 to have a basis for synthesizing and objectively evaluating. The working group fully received the recommendations and proposals of the localities to synthesize and report to the Standing Committee of the Provincial People's Council for consideration and direction at the year-end meeting, as a basis for promulgating new financial mechanisms and policies in accordance with the 2-level local government model.

Leaders of Yen The Commune People's Committee spoke at the conference.

Concluding the working session, Comrade Lam Thi Huong Thanh highly appreciated the sense of responsibility and initiative of localities in budget management and operation, especially in the post-merger context, large scale, many tasks but still maintaining financial discipline, ensuring balance of revenue and expenditure and completing development goals. She requested the People's Committees of communes and wards to continue to be flexible and proactive in implementing solutions to overcome the shortage of professional staff, especially in the field of finance and budget. Pay more attention to training and fostering to improve the professional qualifications and skills of cadres, civil servants and public employees, ensuring that they are suitable to their capacity, strengths and job positions.

He emphasized that the two important draft Resolutions include: Regulations on decentralization of revenue sources, expenditure tasks and percentage (%) of revenue division between provincial budgets and commune-level budgets in Bac Ninh province and Regulations on the allocation of regular expenditure estimates of the state budget in 2026 of local authorities at all levels of Bac Ninh province. This is an important legal basis for the Provincial People's Council to consider and promulgate at the year-end session, to ensure that the decentralization of financial resources is implemented synchronously, publicly, transparently and in accordance with the reality of each locality.

All opinions, recommendations and suggestions from delegates and leaders of communes at the survey session will be fully received and synthesized by the drafting agency, the Department of Finance, and the Survey Team of the Provincial People's Council Standing Committee, as a basis for completing the draft resolution to be submitted to the Provincial People's Council for consideration and resolution at the regular meeting at the end of 2025. Thereby, contributing to the successful implementation of the socio-economic development tasks in 2025 and the following years.

News and photos: Ngoc Anh

Source: https://baobacninhtv.vn/khao-sat-de-hoan-thien-co-che-tai-chinh-trong-mo-hinh-moi-postid429355.bbg