The Ho Chi Minh City People's Committee has just released a summary report on the project to adjust the budget allocation ratio for the city for the 2022-2025 period, with a vision to 2030.
According to the Ho Chi Minh City People's Committee, since 2000, the budget allocation rate for Ho Chi Minh City has tended to decrease significantly. This rate has decreased from 33% in 2000 to 23% in the period 2011-2016, then continued to decrease to 18% in the period 2017-2021.
By the 2022-2025 period, the regulation rate will increase to 21% after many proposed efforts by the city. However, although Ho Chi Minh City once proposed to keep this rate at a minimum of 23%, it was only approved at 21%.
At the end of 2022, the Politburo issued Resolution 31, which clearly stated that the budget allocation rate for Ho Chi Minh City would be kept at 21% until the end of 2025 and not decrease further in the following years.
Therefore, when giving comments on the project "Innovation in the mechanism of decentralization of management and allocation of the state budget to ensure the leading role of the central budget and the initiative of local budgets, relevant agencies and units" of the Party Committee of the Ministry of Finance, Ho Chi Minh City proposed to keep the budget regulation rate at the current level of 21% until the end of 2025 and continue to keep it at a level not lower in the following years.
This helps Ho Chi Minh City have stable resources for strategic development tasks, while maintaining key infrastructure projects, improving people's welfare, and improving income for officials and workers.
Ho Chi Minh City has long been the largest economic, service and industrial center of the country, contributing nearly 23% to the national GDP and 27% of the total national budget revenue.
In particular, Ho Chi Minh City plays the role of economic locomotive of the Southern region and contributes the highest budget to the Central Government in the country.
According to the Ho Chi Minh City People's Committee, in the period 2011-2020, the city's GRDP increased by an average of 6.86% per year. By 2020, Ho Chi Minh City's economy accounted for 25.79% of the national economic scale, with an economic density 41.49 times higher than the national average.
Although the 2016-2019 period witnessed strong growth, the COVID-19 pandemic has severely impacted Ho Chi Minh City's economy in 2020 and 2021. Ho Chi Minh City is striving to recover and maintain growth, aiming for sustainable development.
This year, the Central Government assigned a total budget revenue of VND482,851 billion to Ho Chi Minh City. By the end of October, Ho Chi Minh City collected more than VND408,000 billion (reaching 84.6%), an increase of 10% over the same period.
