On May 26, the National Assembly discussed the draft State Budget Law (amended). In the hallway of the National Assembly, Central Party Committee member and Deputy Prime Minister Ho Duc Phoc shared this content with the press.
What is the purpose of the Government's budget regulation, especially in investing in poor provinces and connecting infrastructure projects, Mr. Deputy Prime Minister?
Deputy Prime Minister: The Prime Minister must significantly regulate resources to invest in infrastructure construction, such as highways, or projects connecting the central and local governments, especially investment in poor provinces.
For example, provinces such as Ha Giang, Lao Cai, Son La, Gia Lai, Kon Tum are unlikely to mobilize capital to invest in connecting infrastructure, so the central government must regulate to support.
On the contrary, localities such as Hanoi, Ho Chi Minh City, Hai Phong, Da Nang have a large source of land revenue, a large budget and often exceed the revenue. This is partly due to favorable socio-economic conditions and strong central investment in infrastructure in the past.
Therefore, budget regulation (including land revenue) is necessary to implement national key projects and support other localities, ensuring harmonious and balanced development.
So according to the Deputy Prime Minister, can such regulation solve the situation where localities have the task of spending but cannot disburse from the budget?
Deputy Prime Minister: No, the Budget Law stipulates the budget of local governments decided by the People's Council (PC) at the same level. The Central Government does not interfere in this matter. However, spending must comply with the norms, standards, and regimes.
For example, investment expenditure must follow the procedures, norms, and estimates prescribed by the Ministry of Construction or the Government. The decision on how much to spend and which specific projects to build is the authority of the Provincial People's Council.
The more specific decentralization (for example, from the provincial People's Council to the Chairman of the Provincial People's Committee) is also decided by the provincial People's Council. The budget allocation to the provinces was reported to the National Assembly right from the beginning of the National Assembly and was transparent.
Many National Assembly deputies seem unwilling to change the current budget allocation authority of the National Assembly. What is the Deputy Prime Minister's view on this issue?
Deputy Prime Minister: The National Assembly allocates the central budget to each sector, each ministry and each province, not allocates details for each item in that sector.
When there are major changes that need to increase the budget, for example, increasing spending on science and technology from the approved 3%, the Government must submit to the National Assembly.
The National Assembly is a legislative body, not executive, and does not have a specialized apparatus to conduct detailed budget management. This belongs to the Government, including management, detailed allocation, management and budget settlement.
Regarding the division of central and local budgets, specifically land use fees, Hanoi and Ho Chi Minh City are currently 100% retained. If this rate is reduced in the near future, while Ho Chi Minh City has many large projects such as urban railways, will it affect it much?
Deputy Prime Minister: Currently, Ho Chi Minh City is allowed to retain 100% of land use fees, but may soon adjust them down. This is reasonable because according to the resolution of the Central Executive Committee, land use fees are a national source of income, not just of a locality.
Localities such as Hanoi, Ho Chi Minh City, Da Nang or Hai Phong are places where this source of income is concentrated, but are also places that have invested a lot in infrastructure over many periods.
Reducing a part of revenue from major cities is necessary for the Government to have resources to invest in key national projects such as Long Thanh airport, the North-South high-speed railway and support poor localities without land revenue such as Lai Chau, Ha Giang, Son La, Gia Lai...
If it is not properly regulated, the Government will have to borrow to invest. The most important thing is still to use money effectively, manage the macro economy well and ensure comprehensive, inclusive and fair development between regions.
Everyone wants to keep all their revenue to spend, but if so, who will take care of remote, isolated, and border areas?
It is not possible to say that the province is rich because of good leadership. Try to put a "good" person from Ho Chi Minh City as Chairman of Bac Kan to see if he can operate better than the current leader. The reality of budget management must be consistent with the conditions of each locality and the whole country.
Thank you for sharing from the Deputy Prime Minister!
