Hanoi restructures budget, redistributes authority for two-level government model

On June 27, the Hanoi People's Council passed important resolutions to restructure the decentralization of revenue sources, spending tasks, and redistribute management authority. These adjustments are to prepare for a two-tier government model from July 1, 2025.

According to the audit report of the Economic - Budget Committee of the City People's Council, this adjustment is necessary. The purpose is to serve as a basis for budget allocation when implementing the two-level local government model from July 1, 2025, ensuring uninterrupted revenue and expenditure tasks.

Adjusting the budget structure

According to the new resolution, wards are identified as a budget level. Revenue sources and expenditure tasks of ward budgets are implemented according to revenue sources and expenditure tasks of commune budgets.

View of the meeting. (Photo: hanoimoi.vn)

All revenue sources and expenditure tasks of district, town and city budgets are adjusted to the city budget. For revenue items regulated for district budgets, the allocation ratio for this level is no longer. Instead, this ratio is adjusted to increase accordingly for the city budget.

In particular, the city budget will enjoy 100% of ward budget revenues.

The Hanoi People's Council also approved the adjustment of the local budget estimate and the city-level budget allocation for 2025. Specifically, the estimated state budget revenue in the area is VND 513,903,532 million, an increase of VND 8,466,470 million compared to the estimate at the beginning of the year. Local budget revenue is VND 183,368,191 million.

Redistribution of management authority

Also at the meeting, the City People's Council abolished Resolution No. 21/2022/NQ-HDND on decentralization of state management of a number of socio-economic fields.

Presenting the report, Director of the Department of Finance Nguyen Xuan Luu said that the City People's Committee has proposed a new decentralization plan. Accordingly, 9 areas will remain decentralized, transferred from the district level to the commune level. 7 other areas will also be decentralized to the commune level but with some tasks adjusted.

The City People's Council believes that clearly defining the authority of each level of government is necessary to increase initiative, publicity and transparency. Based on Clause 1, Article 13 of the Law on Organization of Local Government, the City People's Council assigns the City People's Committee to organize the implementation of the division of authority in accordance with the provisions of specialized laws.

The City People's Committee is required to strengthen direction, individualize responsibilities, and enhance proactiveness in management in the spirit of "6 clear": clear people, clear work, clear responsibility, clear authority, clear time, and clear results.

Source: https://thoidai.com.vn/ha-noi-tai-co-cau-ngan-sach-phan-dinh-lai-tham-quyen-cho-mo-hinh-chinh-quyen-hai-cap-214482.html