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Friday, June 14, 2024

Finance Ministry proposes raising HCMC’s budget retention rate to 21%

The Saigon Times

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HCMC – The Ministry of Finance has urged the Government to ask the National Assembly to raise HCMC’s budget retention rate to 21% next year from the 18% level applied for over five years.

On October 27, the ministry consulted with the relevant agencies over a report on the State budget estimates for next year, the local media reported.

Under the report, HCMC’s budget revenue next year was estimated at some VND386.6 trillion, up by VND21.7 trillion over that of this year.

Of the total, the city is likely to retain more than VND84.1 trillion, including around VND42.6 trillion in revenue of which it can retain 100% and VND41.5 trillion in revenue of which it can retain 21%.

If the city’s budget retention rate is adjusted up to 21%, its retained budget next year would be nearly VND6 trillion higher than the figure this year.

Meanwhile, the city may spend over VND94 trillion next year.

In the report, the Ministry of Finance stated that the budget revenue collection had proven to be more difficult due to the impact of the Covid-19 pandemic. To deal with the pandemic and support enterprises and residents, the State has come up with many policies which require some VND140 trillion. For example, the corporate income tax has been cut by 30%, and tax and land rental payment deadlines this year have been extended.

As of October 15, VND95.1 trillion in taxes, fees and land rentals has been reduced or rescheduled.

More than VND127 trillion from the central and local budgets has been used to fight Covid-19.

Meanwhile, the State has provided VND13.6 trillion in relief aid to residents and employers hit by the pandemic this month. Insurance funds have also paid about VND5 trillion to beneficiaries.

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