Hanoi City enjoys 100% of land use and land lease revenue.

On the morning of June 25, with the majority of delegates present in agreement, the National Assembly voted to pass the State Budget Law (amended). The law consists of 7 chapters and 79 articles, taking effect from the 2026 budget year.

The National Assembly voted to pass the State Budget Law (amended). Photo: Quochoi.vn

Presenting a summary report on the reception, explanation and revision of the State Budget Law project, Minister of Finance Nguyen Van Thang said that one of the contents that many delegates were interested in was the decentralization of revenue sources between the central budget and local budgets.

The Government has accepted and selected option 2 and submitted it to the National Assembly to complete the plan for decentralizing revenue sources between the central budget and local budgets in Clauses 2 and 3, Article 36 of the draft Law. The Government also accepted and adjusted the regulations on the division of land use fees and land rents in the direction that Hanoi City enjoys 100% of these revenues according to the provisions of the Capital Law. For localities that do not receive additional balance, the local budget enjoys 80%, the central budget enjoys 20%. For localities that receive additional balance, the local budget enjoys 85%, the central budget enjoys 15%.

Clause 3, Article 36 of the draft Law just passed by the National Assembly also clearly stipulates: The Government shall develop a plan for specific ratios to divide each revenue item between the central budget and local budgets as prescribed in points a, b, c and d, Clause 2, Article 36, ensuring the leading role of the central budget, and a long-term stable ratio to proactively manage local budgets, and submit it to the National Assembly for consideration and decision.

In case of major fluctuations in state budget revenue and expenditure or large differences in state budget revenue and expenditure between localities, it is necessary to adjust the revenue division ratio accordingly. The Government shall rebuild the revenue division ratio plan prescribed in points a, b, c, d, dd and g, Clause 2, Article 36, and submit it to the National Assembly for consideration and decision.

Regarding the authority to decide on the use of increased revenue compared to the budget estimate and remaining expenditure estimate of the budget level, the draft Law stipulates that the Government shall manage and operate, report to the National Assembly Standing Committee on the implementation results and report to the National Assembly at the nearest session. The draft Law supplements the tasks and powers of the Government, stipulating: Funding, voluntary contributions; Non-refundable aid for the State, the Government of Vietnam and local authorities.

Article 38 of the draft Law stipulates the sources of revenue for local budgets. In particular, the revenues enjoyed by local budgets at 100% include: Resource tax, excluding resource tax collected from oil and gas exploration and exploitation activities; agricultural land use tax; non-agricultural land use tax; water surface rental fee, sea area usage fee; rental fee and sale fee of state-owned houses; registration fee; revenue from lottery activities.

Along with that are the capital recovery amounts of local budgets invested in economic organizations; dividends distributed in cash, profits distributed at joint stock companies, limited liability companies with two or more members having State capital contributed by the Provincial People's Committee as the representative body of the owner; collection of the remaining after-tax profit after setting aside funds of enterprises in which the State holds 100% of the charter capital of which the Provincial People's Committee is the representative body of the owner.

Next is the collection from the local financial reserve fund; the collection and payment to the state budget from the exploitation and handling of public assets managed and handled by local agencies, organizations and units according to the provisions of law on the management and use of public assets. Non-refundable aid from international organizations, other organizations and foreign individuals directly to local authorities.

Fees collected from service activities performed by local state agencies. Fees collected from public service activities by public service units and organizations assigned by competent authorities to provide public services shall be paid to the state budget according to the provisions of law... Revenues are divided according to the percentage (%) between the central budget and the local budget according to the provisions of Clause 2, Article 36 of this Law.

Minister of Finance Nguyen Van Thang presents the acceptance report. Photo: Quochoi.vn

Regarding the institutionalization of the policy of breakthrough development of science, technology, innovation and digital transformation and the arrangement of the administrative apparatus, the Government has also absorbed and revised the draft Law on the tasks and powers of the Ministry of Science and Technology; stipulating the effective application of the process of synthesizing the budget estimate, implementing the state budget and decentralizing the provincial and communal budgets for the fields of science, technology, innovation and digital transformation from July 1, 2025.

Source: https://hanoimoi.vn/thanh-pho-ha-noi-duoc-huong-100-khoan-thu-tien-su-dung-dat-cho-thue-dat-706697.html