From 2022 through the end of 2025, the budget allocation ratio for HCMC will be set at 21 percent, a 3 percent increase from the 18 percent allocated during the 2017 - 2021 period. This ratio is expected to remain at or above this level in subsequent years, in accordance with Resolution No.31 of the Politburo.
This adjustment will provide HCMC with additional budgetary resources for socio-economic development, focusing on strategic breakthrough initiatives and prioritizing infrastructure investments, particularly for key projects. It is also intended to enhance the welfare of residents and increase incomes for officials, civil servants, and workers.
According to the report, the Government's Party Civil Affairs Committee has instructed the Ministry of Finance's Party Civil Affairs Committee to develop a project titled "Innovating the mechanism for decentralization of management and State budget allocation to ensure the central budget’s leading role and the autonomy of local budgets and relevant agencies and units."
As a participant in the drafting team for this project, HCMC will advocate for maintaining the current budget allocation ratio until the end of 2025, with a commitment to keeping it at no less than this level in the following years, in line with the directives of Resolution No.31 of the Politburo.
The HCMC People's Committee noted that the city has consistently upheld political security and ensured national defense. Its labor productivity is 2.8 times higher than the national average, significantly contributing to the country’s economic growth, accounting for approximately 23 percent of national GDP. Experts estimate that every percentage point increase in GRDP growth in HCMC adds an additional 0.23 percent to the overall GDP growth of the country.
HCMC contributes 27 percent of national budget revenue annually and holds the highest level of budget revenue transferred to the Central Government nationwide. Simultaneously, it maintains its role as a center of culture, education, science, and technology, serves as a crucial transportation hub, and plays a significant political and diplomatic role in the country’s development.
