Mr. Trinh Thanh Hai - Director of Nghe An Department of Finance: Allocate resources to communes to ensure smooth and effective operations.
Removing initial difficulties and allocating resources and human resources appropriately when operating the two-level local government model are the contents that provincial People's Council delegates are interested in proposing at the group discussion session and the discussion session in the hall.
On the afternoon of July 9, the 31st session of the 18th Nghe An Provincial People's Council, term 2021 - 2026, held a discussion session in the hall.
Commenting on the draft Resolution No. 11 to be approved by the 31st session of the 18th Provincial People's Council, term 2021 - 2026, on the decentralization of state budget revenue sources, including the content that land use fees from the district budget revenue source will be transferred to the provincial budget revenue source, delegate Nguyen Cong Van said that according to the upcoming draft, the division will be at the rate of 60% for the province and 40% for the commune.
Meanwhile, 1,065 tasks of the district level were transferred to the commune level for implementation, on the other hand, newly established communes faced many difficulties. Therefore, the province studied and considered rebalancing this source of revenue (divided according to the ratio of 50% province, 50% commune) to create conditions for newly established localities to operate effectively.
Regarding the allocation of resources for the two-level local government model, delegate Tran Khanh Linh (delegate of group 1) reflected: Through the implementation of the two-level government model, it is seen that there are some positive points such as: reducing intermediary contacts, more convenient in coordination and direction. However, there are still some issues that need attention and direction, such as the province needs to have a plan to arrange facilities, online meeting systems, financial resources, and reasonable human resources for the commune level to promptly meet the requirements and tasks in the new situation.
Clarifying the issues that delegates are concerned about regarding the regulations on decentralization of budget revenue sources and local budget expenditure tasks, and the division ratio between budget revenue sources at all levels in the province, Director of the Department of Finance Trinh Thanh Hai said: The draft resolution of the provincial People's Council regulates the decentralization of budget revenue sources and local budget expenditure tasks, and the division ratio between budget revenue sources at all levels in the province - this is a document to ensure that the 2-level local government model operates smoothly.
In principle, the revenue and expenditure estimates of the commune level are established on the basis of the total revenue and expenditure tasks and the remaining unfulfilled parts of the communes. The revenue sources and expenditure tasks of the district level were previously adjusted to the province to re-decentralize the provincial and commune budgets. The commune level's tasks to receive the tasks of the district level will be arranged by the province for the commune level.
Clarifying the proposal of delegate Nguyen Cong Van to divide the land history revenue according to the provincial level of 50% and the commune level of 50%, the Director of the Department of Finance said: The distribution principle is kept at the commune level and the district level is adjusted to the province. The reason is that the budget expenditure is based on the principle of accumulation, that is, the tasks of the old communes when merged will become the tasks of the new commune and according to the nature, the expenditure tasks of the district and related to the new commune and located in the new commune will be transferred to the new commune and the remaining tasks will be transferred to the province.
Regarding budget revenue, all revenue sources enjoyed by the district are transferred to the province. The reason why the Department of Finance advises like that is because the Central Government has specific instructions on how to decentralize revenue sources and spending tasks. The Department of Finance is also in the process of redesigning the norms and criteria of the commune level to make estimates for the period 2026-2030. Regarding tasks, the Department of Finance commits to meeting the requirements of local authorities, especially at the commune level, regarding resources.
Responding to the opinion of delegate Tran Khanh Linh proposing to arrange an online system for communes, the Director of the Department of Finance said that the Department will balance and follow the principle of priority. According to the Department's synthesis, the current funding needs that communes enter into the system to propose to the province with a total budget of about more than 1,700 billion VND, to do regular spending such as repairing and upgrading systems.
"Currently, the Department of Finance is allocating resources from the Central Government, meaning that if one commune is reduced, 500 million VND will be given to the remaining communes. Regarding the additional resources, the Department of Finance will advise the Provincial People's Committee on the basis of prioritizing urgent tasks to allocate resources to new communes to ensure smooth and effective operations," said the Director of the Department of Finance.