NA deputies support HCMC to get higher budget retention rate

Permanent members of the NA Committee on Legal Affairs Do Duc Hien, said that the demand for the development of infrastructure is growing in HCMC. The city has built plans on increasing its budget retention rate to raise budget revenue target of the city and boost HCMC economic growth. In addition, the southern economic hub has suffered the huge economic loss due to the impact of the Covid-19 epidemic. The permission allowing HCMC to get higher budget retention rate will create favorable conditions for the city to solve its difficulties and recover from the pandemic. It also help HCMC raise the budget revenue target of the State when the city has been the country's largest money-maker for decades and has always been assigned the highest state budget collection target.

HCMC, the country’s leading economic center is now Vietnam's worst-hit region. The Ministry of Finance’s proposal that has been raised by the city for a long time should be supported, especially in the current situation, Vice Chairman of the NA Committee for Judicial Affairs Nguyen Manh Cuong added.

Permanent members of the NA's Committee for Finance and Budget in the 15th tenure Tran Van Lam said that the committee is examining the suggestion of HCMC and the Ministry of Finance, and will submit it to the 2ndsession of the 15th National Assembly that will take place on November 8.

HCMC may wish a larger retention rate but the central budget has now lost its main role and its proportion to the localities is less than 50 percent. Therefore, the sharing from the state budget revenue to HCMC presents a great effort of the Central.

Former director of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung agreed with the proposal on increasing HCMC’s budget retention rate from 18 to 21 percent.

As the most populous city in the country and a growth engine for the Southern Economic Zone, HCMC really needs a large enough resource to solve problems of infrastructure congestion, environmental pollution, social welfare activities, especially pandemic affects in all aspects of people’s lives.

However, the Government should launch a detailed explanation for the adjustment of the Central budget rate between localities with clear criteria.