Unsustainable income
In 2024, state budget revenue in the province is estimated to reach 26,000 billion VND, reaching 110.2% of the estimate and increasing 4% over the previous year's revenue.
According to provincial People's Council delegates, revenue from Truong Hai automobile operations is still the main source of state budget revenue in the area, accounting for 52.4% of the domestic revenue estimate (VND 11,650 billion/VND 21,700 billion) excluding land use fees and lottery revenue.
It is worth noting that the average monthly revenue from February to August did not meet the average revenue estimate. Only when the policy of reducing registration fees by 50% from September 2024 was in place did car sales increase, leading to growth in this revenue source and the revenue for the whole year of 2024 reaching and exceeding the estimate.
Delegate Nguyen Thi Thu Lan - Secretary of Tam Ky City Party Committee said that budget revenue still depends heavily on Truong Hai automobiles, while other sources of revenue have not yet ensured sustainability.
Typically, land use fees are one of the province's major sources of revenue, with great revenue potential. However, in 2024, revenue from land use fees will be VND 850 billion, reaching 31.5% of the estimate due to the fact that the real estate market has not recovered, businesses are facing financial difficulties, and large and prolonged debts, so the budget contribution is low. For Tam Ky City, the local government must adjust the revenue - expenditure and public investment estimates due to dependence on land use fees.
According to Mr. Nguyen Duc - Head of the Economic - Budget Committee of the Provincial People's Council, although the budget revenue exceeded the estimate in 2024, it is expected that 3/16 revenue items will not be achieved. Tax arrears are still large, some enterprises owe large amounts of land, increasing over the years. The total debt as of October 31, 2024 is 2,187 billion VND.
During the year, 29 new domestic investment projects and 10 FDI projects were attracted. However, the progress of many projects is still slow, the Provincial Competitiveness Index (PCI) is still low and is decreasing.
Business operations are still difficult and recovery is slow. The number of businesses registered to temporarily suspend business, wait for dissolution procedures and dissolve is 1,472, up 10.9% over the same period, higher than the number of newly registered businesses (1,008 newly established businesses).
Construction activities in the province have encountered many difficulties and obstacles, especially in compensation and site clearance, lack of land for leveling, high prices of some construction materials and input costs. Many projects are slow to implement, the progress is prolonged, and the disbursement of public investment capital is still low, affecting the economic growth rate of the province.
Anticipate the difficulties
Currently, the domestic socio-economic situation is gradually recovering and growing. It is expected that in 2025, the economic growth rate in the province will be about 7-8%, but new production capacity has not yet arisen, and there is no sudden increase in revenue.
According to Mr. Dang Phong - Director of the Department of Finance, the estimated state budget revenue in the province in 2025 is 25,000 billion VND, an increase of 5.9% of the estimate in 2024, equal to 96.2% of the estimated implementation in 2024. Of which, domestic revenue is 20,800 billion VND, with the main revenue from Truong Hai automobiles, land use fees, Nam Hoi An activities and hydropower.
Notably, the estimated revenue from Truong Hai automobile operations is about VND 9,180 billion, equal to 78.8% compared to the estimated implementation in 2024. The reason is that in 2025, there will no longer be policies to reduce 50% of registration fees, combined with strong competition from other domestic and foreign brands, especially electric cars; the demand for new purchases of people and businesses tends to be saturated... Therefore, consumption output will decrease compared to 2024, affecting budget revenue.
Provincial People's Council delegates said that business operations are still facing difficulties and recovery is slow. Therefore, they suggested that the government accompany businesses, further improve the open investment environment; step up investment promotion and attraction, promptly approve and supplement the list of projects calling for investment.
Proactively create clean land funds, simplify procedures, shorten the time to process documents, prepare necessary conditions to be ready to attract and welcome strategic investors. In addition, there are solutions to remove obstacles, especially issues related to land allocation, land lease, deposits, etc. to support businesses to overcome difficulties.
At the same time, we need to be more drastic in directing and operating with a focus on key points in the face of difficult revenue forecasts. We need to propose solutions to prevent revenue loss, ensure the budget and have mechanisms for localities to increase revenue. In particular, we need to have mechanisms to encourage localities with large revenue sources such as Hoi An, Thang Binh, Nui Thanh, and Tam Ky.
“In addition to public investment, in 2025 we must focus on private investment, gradually reducing dependence on revenue from Truong Hai automobiles. The important task is to remove obstacles related to procedures and promote investment,” said delegate Nguyen Thi Thu Lan.
Chairman of the Provincial People's Committee Le Van Dung said that in 2025, the Provincial People's Committee will be determined to strongly direct the mining industry, overcome problems with construction materials, sand, gravel, rocks, etc. to speed up project progress and remove difficulties for businesses.
Recently, the Provincial People's Committee has worked with relevant sectors to develop a licensing process that is quick and effective. Districts and sectors must take drastic measures to quickly resolve the issue, including districts with plans for sand mines, soil mines, and gold mines that must be included in investment policies for implementation in 2025.
Source: https://baoquangnam.vn/thu-ngan-sach-nam-2025-quang-nam-du-luong-nhung-kho-khan-3145379.html
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