HCMC seeks higher budget retention rate
HCMC seeks higher budget retention rate
The HCMC government has proposed the Government allow it to raise its budget retention rate from the current 18% to 33% in the next decade to assist with the city’s development and allow it to contribute more to Vietnam’s overall economy.
At an online meeting between the Government and various localities on December 30, HCMC Chairman Nguyen Thanh Phong expected the Government to create stronger motivation for the city’s development, the local media reported.
He proposed the Government allow the city to execute a plan on the distribution of the city’s revenues for its own budget and the central State budget in the 2021-2025 period.
As such, the city’s budget retention rate should be kept unchanged at 18% next year and should increase to 24% in the next five years and 33% in 2030.
According to the municipal chairman, the proposal, if approved, will ensure the city’s sustainable development and help it to contribute more to the country’s growth.
According to Tuoi Tre Online newspaper, many local voters, at a meeting with the municipal delegation of National Assembly (NA) deputies on December 24, also voiced concern over the city’s low budget retention rate of 18%.
Resident Nguyen Xuan Hong noted that with only 18% of the revenue, the city would have difficulty handling pressing issues, such as the overloaded infrastructure and environmental pollution.
Deputy Nguyen Thi Quyet Tam stated that when the NA had approved the rate of 18%, the HCMC delegation of NA deputies had expressed its opposition, pointing out that the rate might hinder the city’s development. The Politburo has also proposed the Government reconsider the rate.
Phong also suggested the Government make conditions favorable for the city to build a national financial center and the plan should be added to the country’s socioeconomic development plan for 2030.
He stressed that the financial center’s development is necessary as HCMC is the country’s largest financial hub and willing to be a pioneer in all respects.
The city leader also proposed the Ministry of Natural Resources and Environment quickly issue guidance on the use of land after the equitization of State-owned enterprises.
