Developing the Thuy Bieu pomelo brand (illustrative photo)

Ensuring financial resources for commune level

At the 11th session of the 8th Hue City People's Council, term 2021 - 2026, the resolution on decentralization of revenue sources, expenditure tasks and percentage of budget revenue division among local authorities in the city was passed.

Accordingly, after nearly half a year of implementing the 2-level local government model in the city, it shows that the spending tasks of the commune and ward budgets (generally called communes) have increased rapidly due to the work and tasks received from the district level. This reality requires ensuring financial resources for state management activities, public services and infrastructure investment at the grassroots level. Meanwhile, the revenue and division ratio according to Resolution No. 11/2025/NQ-HDND dated June 20, 2025 have revealed many inappropriate contents, especially the commune budget revenue is much lower than the expenditure needs of the commune budget, leading to limitations on the initiative of the commune level in organizing the implementation of assigned tasks.

Currently, the commune budget depends largely on land use conversion revenue from households and land use fees from the intercropped land fund. This source of revenue is small and unstable. After the district-level government was abolished, the land fund development projects, creating state budget revenue from land use fees, the People's Committees of the districts have handed over to the city for management. According to the current decentralization, the city budget enjoys 100% of the revenue from land use fees from this land fund.

The allocation to the budget in a reasonable proportion of revenue from land funds transferred from the old district level will help the People's Committees at the commune level have more revenue to spend on development investment according to decentralization. The review and adjustment of the revenue sharing ratio between the city budget and the commune budget, especially for land revenue, is an urgent requirement to gradually increase the commune budget revenue corresponding to the assigned tasks, while enhancing the initiative, responsibility and efficiency of commune budget management.

This Resolution will replace Resolution No. 11/2025/NQ-HDND dated June 20, 2025, which will expire on January 1, 2026. This Resolution is also assessed to be consistent with a number of regulations effective from 2026 and consistent with the decentralization of socio -economic management, national defense, security and management capacity of the city and commune levels. The division of state budget revenue sources ensures that the city budget plays a leading role; consistent with the 2-level local government model.

Suitable for reality

Regarding revenue decentralization, the city budget revenues enjoy 100% such as: Resource tax, except for resource tax collected from oil and gas exploration and exploitation activities; agricultural land use tax; water surface rental fee, sea area usage fee; rental and sale fee of state-owned houses; lottery revenue... Additional revenue to balance the budget, targeted supplement from the central budget. For the commune-level budget, the revenues enjoy 100% such as: Revenue from public service activities of public service units managed by the commune level, the part paid to the state budget according to the provisions of law; non-agricultural land use tax; fees collected by commune-level state agencies; house and land registration fee; State budget revenue from exploitation and handling of public assets managed and handled by commune-level agencies, organizations and units according to the provisions of law on management and use of public assets...

The division by percentage between the central budget, city budget and commune-level budget is carried out on the principle that the revenues managed by the city such as: Land use fees from projects decided by the city for investment policy; land funds managed by the city, organized for bidding and auction; revenue from land use purpose conversion managed by the city; one-time land rent collection is divided according to the ratio of 15% for the central budget and 85% for the city budget.

For revenues managed by the commune level such as: Revenue from land use conversion managed by the commune level; revenue from intercropped land fund; annual land rent, the central budget enjoys 15%, the city budget enjoys 42.5% and the commune budget enjoys 42.5%. Particularly, land use fees from land funds invested by the old district level, handed over to the city for management and assigned by the City People's Committee to the commune level to organize auctions, the central budget enjoys 15%, the city budget enjoys 60% and the commune budget enjoys 25%.

Speaking on the draft resolution, Mr. Vo Le Nhat, Chairman of Phu Xuan Ward People's Committee, shared that when the two-level local government comes into operation, many tasks and functions will be decentralized to the commune-level government for management. Therefore, the city needs to add more resources to ensure the management and operation process; pay attention to resources for the maintenance of essential infrastructure in the area.

This Resolution will take effect from January 1, 2026 to December 31, 2026. The Resolution also clearly states that the communes of Long Quang, Khe Tre, Nam Dong, A Luoi 1, A Luoi 2, A Luoi 3, A Luoi 4, A Luoi 5 currently have low land use fee revenue and have difficulty balancing the tasks of spending on investment in socio-economic development. The City People's Committee will supplement the budgets of the above communes by no more than 42.5% based on the funding needs of these communes.

Hoang Anh

Source: https://huengaynay.vn/kinh-te/them-nguon-luc-dau-tu-cho-cap-xa-160742.html