Special Budget Mechanism for Can Tho City

Noteworthy is the specific regulation on the budget of Can Tho city stated in Article 5 of Decree 103/2018/ND-CP. Accordingly, annually, the central budget will supplement the budget of Can Tho city with the following objectives:

- Not exceeding 70% of the increased central budget revenue from the shared revenue between the central budget and the city budget compared to the estimate assigned by the Prime Minister of the Government of Vietnam (the remaining part after implementing the revenue surplus reward as regulated in the Law on State Budget); and- The increased revenue of the central budget enjoying 100% as stipulated in Points b, c, d, g, h, i, q, Clause 1, Article 35 of the Law on State Budget compared to the estimate assigned by the Prime Minister of the Government of Vietnam, excluding revenue such as:- Revenue not assigned to the city for management, not arising in the city area but only accounted and paid in the city;- Revenues that have been authorized for use;- Revenues accounted for recording revenues and expenditures; and- Revenues retained by units for expenditure management through the state budget according to legal regulations.- The targeted supplementary amount should not exceed the increased central budget revenue in the area compared to the previous year's actual revenue. The determination of the targeted supplementary amount is based on the total revenues, not separately calculated for each revenue type.

Based on the total central budget revenue surplus and the overall balance, the Government of Vietnam will report to the Standing Committee of the National Assembly to consider and decide on the targeted supplementary amount for the city according to the Law on State Budget and the specific mechanism of the city.

For the targeted supplementary amount from the mentioned increased revenue, the city will use it for the following tasks:

- Primarily paying off outstanding basic construction debts;- Investing in infrastructure construction works; investing in the city's High-Tech Area;- Allocating counterpart funds for ODA projects;- Repaying borrowed capital;- Executing important tasks to develop the city's socio-economic conditions, ensuring national defense, security, social order, and safety;- Rewarding the lower-level budgets.

In the first year of the new budget stability period, the Government of Vietnam will authorize the Ministry of Finance to take the lead in cooperating with relevant ministries and central authorities to propose and submit to the competent authorities for consideration and decision on the proportion of regulation for the city's budget to ensure resources for the implementation of the city's socio-economic development objectives and projects of the Mekong Delta region.

See more related regulations in Decree 103/2018/ND-CP which takes effect from October 10, 2018.

- Thao Uyen -

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