The reason for the adjustment is that the local budget estimate and the budget allocation at the Hanoi city level in 2025 have been decided by the City People's Council in Resolution No. 53/NQ-HDND dated December 10, 2024, which is built on the basis of the three-level local government organization model (city/district, town/commune, town) and implements the decentralization of revenue sources, expenditure tasks between budget levels, the budget allocation norms of Hanoi city and the percentage of revenue sharing between budget levels for the period 2023-2025 according to Resolution No. 22/2022/NQ-HDND dated December 8, 2022 of the City People's Council.
Pursuant to the provisions of Resolution No. 203/2025/QH15 of the National Assembly on amending and supplementing a number of articles of the Constitution of the Socialist Republic of Vietnam, the Law on Organization of Local Government No. 72/2025/QH15, effective from June 16, 2025, has established administrative units and a two-level local government organization model, including provincial and communal levels; ending the operation of district-level administrative units nationwide from July 1, 2025.
On August 16, 2025, the City People's Committee issued Document No. 200/TTr-UBND to submit to the People's Council to issue a Resolution amending and supplementing a number of contents on decentralization of revenue sources, expenditure tasks between budget levels, budget allocation norms of Hanoi city and the percentage of revenue sharing between budget levels for the period 2023-2025 according to the two-level local government model including provincial and communal levels.
Therefore, in line with the proposed content of adjusting the decentralization of revenue sources - expenditure tasks, the People's Committee submitted to the People's Council to adjust the local budget estimate and allocate the budget at the Hanoi city level in 2025 when implementing the arrangement of administrative units at all levels and building a two-level local government organization model, which is necessary and within the authority prescribed in Article 30 of the State Budget Law.
Specifically, for the budget revenue estimate, including: The state budget revenue estimate in the area is 513,903,532 million VND (an increase of 8,466,470 million VND compared to the estimate assigned at the beginning of the year due to the updated revenue allocation of districts, towns and cities being higher than the city's allocation), of which the state budget revenue allocated to communes and wards is 2,745,579 million VND.
Local budget revenue includes 183,368,191 million VND (an increase of 17,244,031 million VND compared to the city's budget estimate at the beginning of the year); city-level budget revenue includes 182,273,419 million VND; commune-level budget revenue includes 42,097,220 million VND.
Previously, in the audit report on this content, the Economic - Budget Committee of the City People's Council basically agreed with the local budget expenditure estimate, the city-level budget allocation plan with the expenditure structure as the plan submitted by the City People's Committee.
For other investment projects, development investment tasks and projects allocated capital from the city's targeted supplementary sources, projects allocated from the district's regular expenditure sources now transferred to the city budget, the City People's Council requests the City People's Committee to review capital sources, progress and evaluate the effectiveness and priority of projects before implementation, submit to competent authorities for decision to continue implementation to ensure effective use of the budget, avoid scattered and wasteful investment.
In addition, according to the principle of revenue decentralization, the above-mentioned expenditure tasks will adjust all revenue sources and expenditure tasks of the district budget to the city budget. In the remaining 6 months of the budget stabilization period (until the end of 2025), this is an acceptable management measure. However, in the long term, decentralizing tasks without allocating corresponding revenue sources will make it difficult for the commune level to promote initiative, autonomy and self-responsibility.
Therefore, the City People's Council proposed that the City People's Committee review, have appropriate adjustment plans, establish a clear, transparent and timely targeted supplementary mechanism from the city budget from the 2026 budget year to ensure resources to perform tasks, and enhance autonomy at the grassroots level.
Source: https://hanoimoi.vn/ha-noi-dieu-chinh-du-toan-ngan-sach-phu-hop-voi-mo-hinh-chinh-quyen-hai-cap-706973.html
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