Difficult signal for Dien Ban budget collection

Budget revenue in the first quarter of 2024 from the Heineken Vietnam Brewery Company Limited Branch in Quang Nam is decreasing sharply compared to the same period last year. Photo: QT

Dien Ban is one of four localities that can balance their budgets in the province today, along with Tam Ky City, Hoi An City, and Nui Thanh District.

Although Dien Ban has been self-balancing for a long time, in recent years the "autonomy" of its budget has encountered many difficulties. The town's revenue mainly comes from the Dien Nam - Dien Ngoc Industrial Park and land revenue.

According to Mr. Phan Minh Dung - Secretary of Dien Ban Town Party Committee, in 2023, the town's domestic budget revenue will reach 2,134 billion VND, equal to nearly 90% of the estimate.

Although revenue in 2023 did not meet expectations and some revenue targets decreased, the bright spot was that some revenue increased from the improved performance of businesses operating in Dien Nam - Dien Ngoc Industrial Park, the largest of which was from beer and beverage production businesses.

In 2024, Dien Ban set a target of increasing domestic budget revenue by at least 7%, along with directing the acceleration of administrative procedure reform, publicizing planning information, and socio-economic development orientation, along with creating the most favorable environment to attract investment resources, effectively accessing mechanisms and policies of superiors for businesses to boost production and business. However, this goal is facing many challenges.

According to Vice Chairman of the Provincial People's Committee Nguyen Hong Quang, one of the major difficulties affecting Dien Ban's budget revenue this year is the decline in revenue from beer and beverage production enterprises.

“The estimated revenue for the Heineken Vietnam Brewery Company Limited Branch in Quang Nam (Dien Nam - Dien Ngoc Industrial Park) in 2024 is about 570 billion VND.

Of which, the rate of regulation enjoyed from this source by Dien Ban is 43%, the province enjoys 39% and the Central Government 18%. However, by the end of the first quarter, only 19.5 billion VND was collected, a sharp decrease compared to the same period in 2023" - Mr. Quang said.

In addition, although Dien Ban's land use revenue has been large in recent years, it has also been quite unstable. Dien Ban's revenue in 2023 will decrease the most compared to the estimate, from land use, with a shortfall of VND 460 billion compared to the estimate. This will greatly affect the balance of the local budget for investment projects.

Mr. Tran Quoc Tuan - Deputy Director of the Department of Finance informed that in 2024, the town's estimated domestic budget revenue is 2,900 billion VND. However, of this, more than 1,400 billion VND is estimated to be from land revenue (accounting for nearly 50%), this figure continues to increase by about 550 billion VND compared to the estimate in 2023.

The province is trying to resolve difficulties and obstacles for projects in Dien Ban in particular and the province in general. However, it is necessary for the town to take drastic action, especially in site clearance, because with large projects that only involve a few households, failure to implement them will lead to revenue loss.

Source