Cam Pha City faces many difficulties in collecting the state budget in 2024 when land use fee revenue does not reach the set target, greatly affecting development investment. However, with flexible, creative and innovative management measures in reducing regular expenditures and using budget surpluses, there has been no outstanding debt for basic construction (CBD).
According to Resolution No. 177/NQ-HDND dated December 19, 2023 of the People's Council of Cam Pha City on "Estimated state budget revenue, local budget expenditure, allocation of city-level budget expenditure estimates and some measures for local budget management in 2024", the total estimated state budget revenue in 2024 in Cam Pha City is 12,771 billion VND, equal to 100.2% of the estimate assigned by the province; total balanced local budget expenditure is 1,541.5 billion VND, of which development investment expenditure is 441.9 billion VND.
Identifying the important role of exploiting and effectively using revenue sources, especially revenue from land, in the local socio-economic development task, in 2024, Cam Pha City People's Committee has led and directed departments, offices, People's Committees of wards and communes to thoroughly grasp and organize the collection of state budget with a proactive and drastic spirit; rationally using financial resources to promote socio-economic development. However, in the process of operation, Cam Pha City encountered many difficulties and disadvantages due to the impact of economic recession, sluggish real estate market, changes in mechanisms and policies (Land Law 2024 takes effect from August 1, 2024) reducing the city's land use fee revenue.
By mid-2024, Cam Pha City had only collected 53.1 billion VND from land use fees, equal to 5.31% of the estimate; the whole year's revenue is expected to reach 70 billion VND, reaching 7% of the annual estimate. In that difficult context, Cam Pha City People's Committee directed specialized departments and offices to review planning and establish investment policies for locations eligible for auction and bidding. However, based on market assessment and analysis, the land fund of urban areas in the city has not been filled, market demand is sluggish, and prices are fluctuating, so the city decided to stop considering land funds for bidding and auction.
After consideration and calculation, the city's guiding viewpoint is not to pursue economic growth alone but to ensure effective use of land funds and preservation of the general landscape associated with environmental protection, as a premise for attracting investment in the following years.
Faced with this situation, the People's Committee of Cam Pha City promptly implemented solutions to ensure a balanced source of capital for development investment expenditure. In particular, it has organized a review and cut down on unnecessary regular expenditures; reviewed capital sources from the budget surplus to report to the City People's Council to supplement public investment capital; at the same time, directed the allocation of capital in accordance with regulations, focusing on recovering advanced capital.
From there, Cam Pha City People's Committee submitted to the City People's Council to issue Resolution No. 206/NQ-HDND dated July 19, 2024 and Resolution No. 222/NQ-HDND dated November 13, 2024 on adjusting the city budget expenditure estimate, in which the regular expenditure estimate of the city budget is adjusted down to supplement the increase in the development investment expenditure estimate; Resolution No. 224/NQ-HDND dated November 13, 2024 on supplementing from the 2023 budget surplus to offset the budget deficit to balance investment expenditure.
Accordingly, the total resources saved, cut regular expenditures and use of other legal resources to supplement Cam Pha City's development investment expenditures in 2024 is over 131 billion VND. the highest since the beginning of the term. Notably, this capital source is only allocated for completed and transitional projects and no new projects will be started in 2024.
Mr. Pham Le Hung, Chairman of Cam Pha City People's Committee, said: 2024 is considered the most difficult year for Cam Pha City in ensuring capital for development investment. Despite suffering a lot of damage due to storm No. 3 (Yagi), the locality still maximizes savings on regular expenditures that are not really necessary or urgent to reserve for development investment. From there, in 2024, Cam Pha City will not incur any outstanding debt for construction investment as well as ensure resources for salary payment and social security and welfare in the area.
Currently, Cam Pha City is actively implementing solutions to manage the State budget in 2025 in association with the annual working theme determined by the City Party Executive Committee "Focusing on removing difficulties, unlocking resources; making a breakthrough in economic development, creating momentum for the new term" to achieve the target of collecting nearly 11,000 billion VND in the State budget in 2025, creating momentum and foundation to enter a new, more sustainable development stage.
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