Tam Ky adjusts budget estimates.

One of the reasons for Tam Ky's revenue shortfall is the lack of buyers for land projects put up for auction. (Photo: AS)

By the end of September 2024, total budget revenue in Tam Ky reached nearly 64% of the city's assigned target; of which, revenue managed by the province reached nearly 72%, and revenue managed by the city reached nearly 52%.

Given this situation, according to the City People's Committee, it is projected that by the end of 2024, total budget revenue in the city will reach nearly 90% of the city's assigned target; of which, revenue managed by the province will reach over 100% of the target, while revenue managed by the city, although reaching 131% of the provincial target, will only reach over 74% of the city's assigned target.

According to calculations by the Tam Ky Finance and Planning Department, most revenue streams met or exceeded the annual plan; however, revenue from land use fees is expected to reach only 55% of the set target, the lowest in recent years.

Based on the revenue collection results and projected revenue for the remaining months of 2024, the city is forced to adjust the 2024 budget by reducing the projected revenue from land use fees from 400 billion VND to 220 billion VND.

Accordingly, the projected development investment expenditure from land use fee revenue will be reduced by 180 billion VND. Thus, after the adjustment, the total budget revenue in the area for 2024 will be 1,638.7 billion VND; of which the province will manage 1,104 billion VND and the city will manage 529.6 billion VND. The total state budget expenditure will be 1,182.7 billion VND; of which development investment expenditure will be 451 billion VND.

According to the city's People's Committee leaders, 60 projects that have not completed investment procedures, are facing land clearance issues, or are having difficulty disbursing all their capital will be cut, totaling 214 billion VND; at the same time, 34.9 billion VND will be added to 17 ongoing projects that need capital due to their good progress.

Mr. Nguyen Quang Tuan, Head of the Finance and Planning Department of Tam Ky City, said that the projected annual revenue is based on the medium-term plan, while expenditure tasks are numerous. If revenue collection is not carried out aggressively, it will be very difficult for investment.

The local government's annual budget allocation is very low, only 18-20 billion VND out of a total investment of nearly 500 billion VND, mainly from the city's revenue.

In 2024, the Tam Ky Land Development Center auctioned off 64 land plots with a total starting price of 140 billion VND, but only 3 plots worth 4.2 billion VND were successfully auctioned. Furthermore, this year the city continued to prioritize allocating land for resettlement, but compensation and land clearance faced difficulties, resulting in the resettlement revenue not meeting the plan...

The Chairman of the People's Committee of Tam Ky City, Mr. Nguyen Duy An, said that adjusting the 2024 budget revenue and expenditure is necessary, but it is important to learn from the experience after the adjustment in planning, attracting investment, and implementing projects in a way that is closely aligned with reality.

Notably, the local government has a huge need for funding; the 32 infrastructure connection projects alone require over 2 trillion VND, with the province contributing 70 billion VND and the remainder coming from land. Other programs and projects, such as the Tam Ky River embankment and the underground drainage system along Trung Nu Vuong Street, also draw funding from land.

"Many investment needs also stem from revenue generated from land, while land sales are sluggish. Of course, the reason why projects have not completed investment procedures by November is also due to regulations, master plans, and the new Land Law. This is also a common difficulty for the entire province, which needs to be shared and solutions found to overcome it," Mr. An emphasized.

Source: https://baoquangnam.vn/tam-ky-dieu-chinh-du-toan-ngan-sach-3145210.html