City to tighten fiscal discipline

09-Dec-2016 Intellasia | The Saigon Times | 6:00 AM Print This Post

HCM City will tighten fiscal spending given revenue constraints as a result of tariff cuts and a lower level of retained budget revenue.

With the percentage of budget revenue the city may retain slashed from 23 percent to 18 percent, a series of solutions for revenue management will be carried out next year, said HCM City Chair Nguyen Thanh Phong at the opening session of the municipal People’s Council on December 6.

Specifically, the city will tighten fiscal discipline, settle problems related to taxation to help businesses boost their activities and fulfill their tax obligations, said Phong at the third meeting of the council on December 6.

Notably, capital allocation will be based on how to balance the budget. Funding will be prioritised for projects within the seven breakthrough programmes.

HCM City will offer incentives to lure investors from all economic sectors into infrastructure development, with a focus on public-private partnerships.

As per the plan for public investment in HCM City next year, the central budget will provide nearly VND7.2 trillion, while the city will supply itself more than VND25.1 trillion.

The total budget revenue of the city next year is estimated at over VND347.8 trillion, an increase of nearly 16 percent from 2016, whereas the total budget spending is put at some VND70.64 trillion.

A HCM City People’s Council deputy suggested the city focus on fuelling production as a long-term solution for sustaining revenues. Thus, the municipal government should early specify the incentives for each type of production to assist businesses to grow.

Initially, the city government said a VND1 trillion package would be launched to support entrepreneurship and help household businesses turn into companies.

In addition, the time for business registration will be shortened. And preferential policies on taxation, credit, land and manpower combined with attraction of multinational corporations will be implemented in line with the development of domestic enterprises and supporting industries.

“The city will go ahead with the plan for restructuring SOEs and divesting State stakes in enterprises, grant public service units autonomy, call for the private sector’s involvement in public services, let eligible public service units go public, and cut budget spending,” said Nguyen Thanh Phong on the economic development plan for next year.


Category: Economy, Vietnam

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