Financial and budgetary management mechanisms after provincial mergers

ANH HUY |

The People's Councils at the provincial level issued Resolutions on decentralizing revenue sources and expenditure tasks between the provincial and commune budgets accordingly.

The Ministry of Finance has issued a document responding to the opinions of voters of Quang Ngai province sent by the National Assembly's Petition and Supervision Committee.

Accordingly, voters requested the Ministry of Finance to guide localities to unify financial and budgetary management mechanisms after the merger of provinces to avoid congestion, especially in implementing social security policies.

Regarding this issue, the Ministry of Finance said that the Ministry has issued Document No. 4205/BTC-NSNN to the People's Committees of provinces and centrally run cities guiding the principles of handling finance and state budget when organizing administrative units at all levels and building a model of organizing local government at 2 levels, in the direction of:

The division of revenue between the provincial budget and the commune budget after the reorganization should remain stable, ensuring revenue like the communes before the reorganization. Revenue and expenditure tasks of the district budget are previously arranged to be transferred to the provincial budget for implementation.

In case the commune level after the arrangement is capable of performing the tasks of the district budget before the arrangement, based on the actual situation, the Provincial People's Council will decide accordingly.

Local regimes and policies issued according to the provisions of the State Budget Law and related laws continue to be stable in terms of subjects, spending levels and areas as before the restructuring of the apparatus.

Based on the 2025 budget estimate after the arrangement decided and assigned by competent authorities, the administrative units formed after the arrangement shall allocate, manage and settle funds according to regulations, including unfinished work that has been agreed upon for handover.

In addition, according to the Ministry of Finance, based on the opinion of the National Assembly Standing Committee in Notice No. 2162/TB-VPQH dated June 23, 2025, the Prime Minister issued Decision No. 1390/QD-TTg and Decision No. 1391/QD-TTg dated June 27, 2025 on the assignment of state budget estimates for 2025 to provinces and centrally run cities that have implemented the arrangement of provincial-level administrative units.

Based on the provisions of the State Budget Law and the actual situation in the locality, the Provincial People's Council (after the arrangement of provincial-level administrative units) issued Resolutions on decentralization of revenue sources, expenditure tasks between the provincial and commune budgets, appropriate regimes, standards, and budget expenditure norms.

ANH HUY
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