Failure to achieve budget revenue collection plan from land

In 2023, the Central Government assigned an estimated revenue from land use to Quang Ngai province of VND 2,500 billion, of which VND 1,645 billion at the provincial level and VND 855 billion at the district level.

According to the report of the Department of Natural Resources and Environment of Quang Ngai province, by August 31, 2023, 3 projects had been successfully auctioned, with a total value of nearly 415 billion VND; 3 projects were auctioned but failed, which are the projects of Lot DN06 belonging to the technical infrastructure system project of the residential area on Bau Giang - Cau Moi road axis; Land plot No. 83 belonging to the project of Green Park combined with multi-purpose cultural and sports services in Tran Phu ward and the project of Riverside My Khe Commercial - Service Complex.

*The residential project on My Tra - My Khe road in Quang Ngai city has not been able to be put up for auction after many years.*

Some projects are carrying out procedures related to auction work such as: Hang Duong Eco-tourism Area Project (Tinh Khe Commune); Land fund of 20 land lots belonging to the Resettlement Area project combined with land fund development for the project of building a dike system to respond to climate change (Tinh Ky Commune); Urban embellishment project of the North of Thien But Mountain (Nghia Chanh Ward); projects of the Southern bank of Tra Khuc River Urban Area, the residential area of My Tra-My Khe road axis, the land plot in La Ha town, Tu Nghia district...

In addition, according to Decision No. 524/QD-UBND dated June 12, 2023 of the People's Committee of Quang Ngai province, there are 3 other projects invested by the Provincial Traffic Construction Investment Project Management Board which are also included in the land use rights auction plan in 2023 and 1 urban project with non-budget capital, the Bau Giang Urban Area Project.

*The province's land use fee auction is too slow, only reaching about 25% of the provincial target to collect in 2023* .

Chairman of Quang Ngai Provincial People's Committee Dang Van Minh said that since the beginning of the year, the Provincial People's Committee has proactively organized meetings to review and evaluate the implementation results in each quarter and directed the resolution of problems to promote the completion of procedures and speed up the progress of auctioning land use fee collection projects. However, up to this point, the province's land use fee auction is too slow, only reaching about 25% of the provincial target to be collected in 2023.

According to the Chairman of the People's Committee of Quang Ngai province, there are many reasons for the delay in collecting land use fees, but mainly due to objective reasons: most projects put up for auction must review the entire planning, taking a lot of time to complete procedures.

When the auction procedures were completed, no businesses or investors participated in the auction, leading to the auction being unsuccessful. The determination of the starting price for commercial and service land was too high compared to other provinces and cities in the region, leading to a failure to attract businesses to participate in the auction.

The Chairman of the People's Committee of Quang Ngai province requested departments, branches and localities to focus on consulting on handling difficulties, to carry out auctions and collect land use fees in 2024 and 2025. The Department of Natural Resources and Environment was assigned to coordinate with the Department of Justice to research, based on legal provisions, urgently review, advise the Provincial People's Committee, and submit to the Provincial People's Council for comments on commercial service land prices in the Land Price List 2020 - 2024 issued by the Provincial People's Council in 2020.

Forecasting that in 2023, there will be a shortfall in land use fees of about 800 billion VND, the Chairman of the People's Committee of Quang Ngai province said that the province will compensate for this shortfall with excess revenue in 2023; assigning the Department of Finance to balance the source, arrange enough capital for projects and works that were previously structured from land use fees. At the same time, requiring investors to focus on disbursing all allocated capital.

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