Firstly, with the regulation on decentralization of budget management, the State Budget Law has created a mechanism to encourage localities to pay attention to and take care of investment and development, create a favorable environment for attracting investment, promote production and business development to create more revenue for the State budget; focus on directing and urging, ensuring collection and payment of the State budget according to the law, striving to increase State budget revenue to solve socio-economic development tasks of localities.
Second, the management and operation of the local budget has been proactive, the budget expenditure structure has been maintained at a reasonable level for development investment, encouraging and creating a favorable environment for production and business development; the role of the State budget in regulating the macro economy has become clearer and increasingly effective, contributing significantly to maintaining economic growth.
* Period 2007-2010:
Basically, all three levels of province, district and commune continue to promote the results achieved in the period 2004 - 2006, thereby proactively and boldly organizing and exploiting decentralized revenue sources effectively. Increase local budget revenue to balance expenditure, helping local authorities at all levels link revenue and expenditure tasks with socio-economic development plans.
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* Period 2011-2015:
In the period of 2011 - 2015, Dong Nai's State Budget was adjusted to increase from 45% to 51% for revenue sources divided into VAT on domestically produced goods, special consumption tax on domestically produced goods, corporate income tax (except for enterprises with sector-wide accounting), personal income tax, environmental protection tax of central state-owned enterprises, local state-owned enterprises, enterprises with foreign investment capital, and non-state service sectors, thereby creating favorable conditions for the local budget to completely overcome the budget deficit, balance expenditure tasks and help the local budget to link revenue and expenditure tasks with the socio-economic development plan in the area.
+ Achievements when implementing budget decentralization
* On decentralization of state budget revenue sources
. Period 2004-2006:
Firstly, the revenues managed by the district level are decentralized and enjoyed 100%, helping the district level to be proactive in managing and exploiting revenue sources to meet the needs of regular expenditures and development investment expenditures. Decentralization to the commune level to enjoy the following benefits:
Fees, charges, revenues from career activities of units managed by commune and town level agencies and other revenues paid to commune and town budgets according to law; revenues from public property... have contributed to enhancing the dynamism of commune-level authorities in managing and exploiting revenue sources in the area; being proactive in using revenue sources to meet requirements and tasks.
Second, most of the revenues assigned to the district and commune levels for collection management are 100% allocated to the budget of that level. In particular, Bien Hoa city collects land use fees with a proportion allocated to the provincial budget; Some VAT and corporate income tax revenues of non-state enterprises collected by the provincial level are also allocated to the district and commune levels, creating a source for the district and commune budgets to proactively carry out expenditure tasks.
Third, all three levels of province, district and commune have been proactive and bold in organizing and exploiting revenue sources effectively according to decentralized tasks. The state budget revenue of the following year has increased higher than the same period of the previous year, creating conditions for increasing local budget revenue to balance expenditures, helping local authorities at all levels to link revenue and expenditure tasks with socio-economic development plans. The revenue from regulating budgets of local authorities at all levels in the period of 2004 - 2006 increased by an average of 18.2% per year (of which the provincial budget increased by 22.2%; the district and city budget increased by 11.4%; the commune budget increased by 6.1%).
By the end of 2006, in the province, 170/171 commune-level government units were assigned the task of delegating non-state revenue collection (contracted for 6 months and 1 year). Only Nam Cat Tien commune of Tan Phu district is a remote commune that does not meet the conditions for assignment. There is 1 unit, Bien Hoa city, that balances its own revenue and expenditure budget.
. Period 2007-2010:
Firstly, the state budget revenue increased sharply from 8,868 billion VND in 2006 to 20,381 billion VND in 2010. Thereby, it is affirmed that the mechanism of budget management decentralization has encouraged and created conditions for localities to better exploit revenue sources for the state budget, the capacity of local budgets has grown, financial potential and the scale of the state budget have been developed. This is an important factor to ensure socio-economic development, maintain national defense and security in the area.
Second, deploy to all 171 commune-level government units the task of delegating non-state revenue collection (households contracted for 6 months, 1 year). For commune level, there are 31 communes,
Wards that have balanced their own revenues and expenditures include 24 communes and wards in Bien Hoa city and 07 communes, wards and towns in Long Thanh district (01 town), Dinh Quan (01 town), Long Khanh (04 wards), Vinh Cuu (01 commune). Compared to the period 2004 - 2006 when all 171 commune-level budget units had to subsidize, the period 2007 - 2010 has seen remarkable progress in budget management and decentralization.
. Period 2011-2015:
Firstly, decentralizing the content of special consumption tax in non-state sectors to be managed and collected by the district level, the district budget will enjoy the prescribed adjustment rate. Decentralizing this content helps the district-level local government to actively review and proactively exploit this additional source of revenue.
Second, the decentralization of revenue from VAT, corporate income tax, and special consumption tax in the non-state sector will be implemented so that the level that manages the collection will regulate the budget of that level to enjoy (previously, this revenue source was managed by the provincial level but enjoyed by the district level). This change in decentralization has created conditions for the provincial budget to proactively balance revenue and expenditure, and distribute resources to the district budget equally and effectively.
Third, for revenue from VAT, corporate income tax, and special consumption tax in the non-state sector, the district-level budget share of Long Khanh town is increased from 45% to 51%, and for Bien Hoa city, it is increased from 33% to 38%. The increase in the regulation rate creates conditions for the district-level budget to proactively exploit revenue sources to balance expenditure tasks in the area.
Fourth , change the rate of regulating land use fee revenue of the provincial and district budgets from 50% - 50% to 80% - 20%. By January 2013, the adjustment will be: 60% - 40%. This adjustment is in accordance with the regulations of the Central and the Provincial People's Council on allocating resources for the housing development fund and the land development fund, while increasing the investment source for construction investment at the district level.
* On decentralization of local budget expenditure tasks
. Period 2004-2006:
Firstly, the decentralization of state budget expenditure tasks at all levels in the province has met the requirements of socio-economic development tasks, ensuring security and national defense; the arrangement
Budget allocation at all levels based on decentralized tasks has proactively handled unexpected tasks: flood and epidemic funds, etc. Total local budget expenditures in recent years have ensured a priority structure for development investment, education and training, science and technology, social security, etc., spending areas associated with socio-economic development tasks of the localities.
Second, the decentralization of expenditure in various areas has created a driving force for budget levels to proactively arrange tasks and resources in accordance with the economic, political and social situation in the area with the goal of using budget capital most effectively. Third, based on the decentralized tasks, the commune-level budget has focused on mobilizing capital resources from people's contributions for development investment, effectively implementing socialization in a number of areas such as education, rural transportation, etc. The total expenditure of the local budget of
The levels of each year are higher than the previous year.
Fourth, the decentralization of investment capital in the form of targeted supplements to district and commune levels has helped districts and communes gradually improve, contributing to promoting agricultural and rural development in localities.
. Period 2007-2010:
Firstly, the local budget focuses on human resource development, with priority given to the education and training sector; implementing social policies, hunger eradication and poverty reduction, through which many policies have been implemented such as supporting the poor with housing, free medical examination and treatment for the poor and children, increasing subsidies for social beneficiaries, implementing irrigation fee exemptions and reductions for farmers, strengthening the commune-level government apparatus, contributing to improving the material and spiritual life of the people, reducing the poverty rate, and gradually developing the socio-economic situation of the locality.
Second, based on the decentralized tasks, all levels have focused on mobilizing resources such as: targeted support from the central budget, idle capital advances from the State Treasury, government bond capital, capital mobilized under Clause 3 - Article 8 (Ho Cau Moi bonds), capital mobilized from people's contributions, etc. for development investment. All levels and sectors have proactively managed their budgets effectively, meeting the requirements of regular and extraordinary expenditures, while at the same time implementing socialization well in a number of areas: education, rural transport, etc. Total local budget expenditures at all levels in the following year are higher than the previous year.
Third, strongly decentralize the task of spending on construction investment to the district budget from the lottery capital and land use fee revenue that the provincial budget enjoys.
. Period 2011-2015:
Firstly, adjusting the decentralization of environmental career expenditure to the provincial, district and commune levels. This adjustment helps authorities at all levels carry out environmental management to ensure the requirements of assigned tasks.
Second, decentralizing science and technology expenditure to the district level instead of the previous mechanism of capital matching. This additional decentralization has created conditions for district-level budgets to proactively balance revenue and expenditure and be more effective in performing tasks.
- Problems and causes in implementing decentralization of state budget management since the State Budget Law 2002 up to now
The decentralization of budget revenue and expenditure management in the locality since the State Budget Law of 2002 has still had some unresolved problems, as follows:
+ Problems and causes of the State Budget Law 2002 to present
Firstly, the funding demand for socio-economic development in the area is quite large. In recent times, Dong Nai has focused on many solutions to exploit revenue sources to meet task requirements, while revenue from import and export in the province accounts for more than 1/3 of the province's total revenue, but according to the State Budget Law, 100% is regulated to the central budget.
Second, Dong Nai is located in the key economic region of the South, the need for investment in infrastructure development is very large, but due to the provisions of Clause 3, Article 8 of the State Budget Law, the province is allowed to mobilize investment capital and balance the provincial budget to repay debts with the outstanding debt not exceeding 30% of the annual domestic construction investment capital of the provincial budget for all localities (except Hanoi and Ho Chi Minh City) is not appropriate and fair. Third , according to the provisions of the State Budget Law, the commune-level budget is entitled to a minimum of
70% of 05 revenue items (land use right transfer tax, real estate tax, business license tax collected from individuals, business households, agricultural land use tax collected from households, real estate registration fee), however, for some communes, only need to enjoy a low level (from 30% to 40%) to ensure sufficient balance for spending tasks. In addition, the province also develops
This creates a situation where the district budget (or commune budget) increases revenue, the provincial budget (or district budget) has a revenue deficit but cannot regulate from the district budget (or commune budget) to the provincial budget (or district budget), causing difficulties in the overall management and operation of the general budget in the area.
Fourth, the State Budget Law stipulates that "after each period of budget stability, it is necessary to increase the ability to self-balance, develop the local budget, gradually reduce the additional amount from the higher-level budget or increase the percentage (%) of regulating the amount of revenue to the higher-level budget" . The capital demand for socio-economic development of the province is quite large. In the period of 2011-2015, Dong Nai has just escaped the state of budget imbalance. If it follows the provisions of the State Budget Law, Dong Nai will fall into a difficult budget situation.
+ Problems and causes in the process of implementing decentralization of state budget management since the 2002 State Budget Law until now
* On the decentralization of state budget revenue sources since the 2002 State Budget Law up to now
Firstly, the exploitation of revenue sources, especially the non-state revenue collection sector for individual business households under the contract method, is affected because the Ministry of Finance stipulates that the collection authority is not implemented at the commune level but is assigned to the Tax Department for collection management. As a result, there is a lack of close management by the commune-level government towards taxpayers.
Second , the non-state service sector has not yet decentralized all enterprises of the Tax Department to manage tax collection to the Tax Departments of districts, Long Khanh town, and Bien Hoa city because the General Department of Taxation has not yet changed the mechanism for decentralizing tax collection management.
Third, the provincial budget is still passive in offsetting and balancing revenue and expenditure for the district budget in the field of non-state revenue for VAT and corporate income tax in the non-state sector collected by the provincial budget, all of which are distributed to the district budget. If the provincial budget manages to collect more than the budget, the district budget will enjoy the excess revenue, conversely, if the revenue does not meet the estimate, the provincial budget will have to compensate for the deficit in revenue and expenditure imbalance for the district budget.
+ On decentralization of local budget expenditure tasks since the State Budget Law of 2002
now:
Firstly, the implementation of construction investment expenditure at the district level has been strongly decentralized but
Regarding the capital source for district-level budgets to implement capital expenditure from construction investment, it has increased again.
insignificant because the allocation of the estimated expenditure for construction investment from the annual central budget for the locality is not high, not meeting the expenditure for construction investment according to the resolution of the Provincial Party Committee and the Provincial People's Council. On the other hand, in the situation where 10/11 district-level units are units receiving additional subsidies from the provincial budget, balancing the district-level budget to perform decentralized tasks is very difficult.
For the commune level, investment has not been decentralized according to Decree 12/2009/ND-CP dated February 12, 2009 of the Government on management of construction investment projects because the capacity of most commune-level civil servants in charge of construction investment has not met the regulations. As a result, some projects are invested by the commune level but must be handed over to the district level. Therefore, construction investment is sometimes not linked to socio-economic development because the commune and district levels are not closely monitoring and lack initiative.
Second, the implementation of budget expenditure management by the local government for commune, ward, and town health centers and district-level continuing education centers is not thorough and close due to the regulations requiring the transfer of spending tasks to the Department of Health for management (Joint Circular No. 03/2008/TTLT-BYT-BNV dated April 25, 2008) and the transfer of district-level continuing education centers to the Department of Education and Training for management (Decision No. 371/QD-UBND of the Provincial People's Committee dated February 17, 2009).
Third, the budget allocation norms are mostly no longer suitable due to price fluctuations and annual arising tasks that cannot be adjusted because they are built on criteria prescribed by the Central Government and allocated expenditures. As a result, Dong Nai faces many difficulties every year in exploiting revenue sources to supplement the units and budget levels in the area to ensure the requirements of the assigned tasks.
Fourth, Dong Nai has not been really proactive in deciding on its budget because in addition to allocating tasks according to the national target program, every year when allocating funds, the Central Government stipulates that many tasks must be spent at a minimum level, while if these tasks are spent as prescribed, they will not be fully disbursed by the end of the year or the funds will not be used effectively. In addition, the remaining tasks do not have a source of funding to ensure implementation.
2.2.3. Decentralization of budget cycle management
Dong Nai implements the budget process according to the provisions of the 2002 State Budget Law, in a traditional manner based on the total available resources and the system of current regimes, standards, and norms to build estimates and allocate the budget. The synthesis of estimates or approval of the final budget of the higher level is the synthesis of estimates or approval of the final budget from the lower level budget.
However, due to the budget process with large integration but relatively short implementation time, the budget preparation and settlement at lower levels are still formalistic, because in reality, the provincial level cannot wait for each commune and district to synthesize but often proactively prepares the budget estimates of the communes based on the assigned inspection numbers; makes the budget settlement based on the specific budget allocation data of the province and some actual adjustments during the implementation process. However, this content still lacks sanctions to ensure the correct implementation of the budget estimates and annual budget settlement, reducing the effectiveness, even invalidating the decisions on decentralization of the State budget.
In addition, when the People's Council decides on the budget estimate, it must be based on the budget estimate decided by the higher level. In case the lower level decides on the budget estimate that is not consistent with the budget estimate decided by the higher level, the higher level has the right to request an adjustment. In case the higher level decides and assigns the budget estimate that is not consistent with the actual conditions of the locality, but when deciding on the local budget, the locality must still comply with the decision to assign the budget estimate of the higher level. Therefore, the preparation of the budget is still imposed, without a medium-term vision, the budget is allocated in a scattered manner, and the efficiency of resource use is low. At the same time, the regulation that the higher level financial agency must explain to the People's Council all issues related to the settlement of the lower level budgets is unreasonable.
2.2.4. Problems raised
Since its promulgation, the 2002 State Budget Law has been applied by local governments nationwide to the practical situation of each locality. Therefore, the decentralization of state budget management in each province and city also has its own distinct features.
Dong Nai is one of the 6 provinces and cities with the highest contribution to the state budget revenue in the country, with a fairly high rate of industrialization and modernization, and the province's economy is developing.