Resolution No. 115/2020/QH14 on piloting certain mechanisms and financial-budgetary policies with special characteristics for Hanoi City

RESOLUTION

On piloting certain mechanisms and financial-budget policies

with special characteristics for Hanoi City

OF THE NATIONAL ASSEMBLY

On the basis of the Constitution of the Socialist Republic of Vietnam;

Based on the Law on Legislative Regulatory Acts No. 80/2015/QH13;

RESOLUTION:

Article 1. Scope of Regulation

This Resolution stipulates the piloting of certain mechanisms and financial-budget policies with special characteristics for Hanoi City regarding the management of state budget revenue and expenditure, the level of debt borrowing, and the use of the Financial Reserve Fund.

Article 2. Applicability

1. State agencies, political organizations, and socio-political organizations.

2. Socio-professional organizations, social organizations, socio-professional organizations.

MECHANISMS AND POLICIES REGARDING THE PRICE OF AUCTION SERVICES FOR ASSETS THAT MUST BE SOLD THROUGH AUCTIONS AS PRESCRIBED BY LAW

Article 3. Management of state budget revenue

1. The People's Council of Hanoi City shall decide to apply on the territory of Hanoi City certain fee items suitable to the characteristics of Hanoi City as follows:

a) Fees not provided in the List of Fees and Charges issued together with the Law on Fees and Charges;

b) Adjusting the rate or proportion of fees already decided by the competent authority for the types of fees provided in the List of Fees and Charges issued together with the Law on Fees and Charges, except for those types of fees that belong to the central government's revenue at 100%.

2. The implementation of the policy on collecting fees in the territory of Hanoi City as stipulated in Clause 1 of this Article must follow the following principles:

a) Ensuring an appropriate timeline in line with economic and social conditions, the Socio-Economic Development Strategy for the 2021-2030 period, the five-year financial plan for the 2021-2025 period, the level of development and requirements of Hanoi City; creating a favorable production and business environment, especially for small and medium enterprises and priority investment sectors and professions;

b) Ensuring market unity, not hindering the circulation of goods and services; regulatory policies must be reasonable and appropriate to the development of Hanoi City and the lawful income of organizations and individuals within the city;

c) Transparency, administrative reform, including administrative reform in fee and charge management.

3. The Hanoi City budget shall enjoy 100% of the additional revenue from the fee items stipulated in Clause 1 of this Article to invest in developing economic and social infrastructure and funding economic, scientific, and technological activities, education, healthcare, and social welfare under the city's budgetary expenditure responsibilities, and shall not be used to determine the percentage (%) of revenue shared between the central budget and the Hanoi City budget.

4. The Hanoi City budget shall enjoy 50% of the land use fee revenue when selling state-owned assets attached to land according to the Law on Management and Use of State Assets (after deducting related costs for selling assets on land, transferring land use rights; relocation expenses, construction of facilities at new locations according to the Law on Management and Use of State Assets) by central-level agencies, organizations, and units managing assets in Hanoi City (excluding defense and security-related agencies and units) to invest in developing economic and social infrastructure under the city's public investment tasks.

5. The Hanoi City budget shall enjoy the entire revenue from the reorganization, shareholding, and divestment of state-owned enterprises, where the Hanoi City People's Committee acts as the representative owner of state capital according to the State Budget Law, to supplement investment capital for developing economic and social infrastructure under the city's public investment tasks.

Article 4. Management of State Budget Expenditure

1. Based on the annual state budget estimate that has been decided by the National Assembly, the Prime Minister shall allocate and considering the actual situation of Hanoi City, the People's Council of Hanoi City shall decide on the city budget estimate and allocation to ensure consistency with the restructuring direction of the budget, socio-economic development, and important sectors as prescribed by the National Assembly and the Government.

2. Hanoi City shall implement the mechanism for generating sources for salary reform as stipulated. After the city budget of Hanoi ensures sufficient sources for salary reform and implements social welfare policies for the entire period of budget stabilization according to the authority's regulations, the People's Council of Hanoi City may decide to use the remaining salary reform funds from the city budget and allow lower-level budgets to use the remaining salary reform funds to invest in developing socio-economic infrastructure within the scope of the city budget expenditure.

3. The People's Council of Hanoi City shall decide:

a) To use regular expenditure funds from the local budget to invest in upgrading, renovating, expanding, and constructing new essential facilities including fire prevention and firefighting, waste collection and treatment, water supply, drainage, electricity, equipment, toilets, fences within existing administrative agencies, public service units, and political-social organizations managed by Hanoi City according to the State Budget Law. In cases where new essential facilities with a value of VND 1 billion or more are constructed, they must be approved by the competent authority through project approval or technical and economic report approval before the budget allocation, and bidding and management procedures must be carried out as required for public investment projects;

b) To use the city budget to support other domestic localities, allowing districts to use their district budgets to support difficult counties in Hanoi City in disaster prevention and control, disease prevention and control, implementation of national poverty reduction programs, and new rural construction.

Article 5. Level of Debt and Use of Financial Reserve Fund

1. The level of debt of the Hanoi City budget shall not exceed 90% of the revenue of the Hanoi City budget according to the revenue sharing classification. The revenue of the Hanoi City budget is determined based on the annual budget revenue estimate decided by the National Assembly. The total amount of borrowing and budget deficit of the Hanoi City budget annually is decided by the National Assembly according to the State Budget Law.

2. The People's Committee of Hanoi City shall report to the People's Council of Hanoi City to decide on temporarily using the Financial Reserve Fund to implement public investment projects included in the medium-term investment plan, which have project approval decisions and fall within the scope of the Hanoi City budget expenditure as stipulated by the Public Investment Law and other relevant laws when necessary to expedite progress. Each temporary loan period shall not exceed 36 months from the date of loan. The total amount of temporary loans at any point in time shall not exceed 50% of the balance of the Financial Reserve Fund of Hanoi City as of December 31 of the previous year. The People's Committee of Hanoi City shall prepare and submit to the People's Council of Hanoi City to decide on allocating annual state budget capital for these projects to recover the temporary loans and repay the Financial Reserve Fund according to the law.

Article 6. Implementation Provisions

1. This Resolution takes effect from August 15, 2020 and is implemented for five years.

In case there are different provisions on the same issue between this Resolution and other laws or resolutions of the National Assembly, the provisions of this Resolution shall apply. In case a regulatory legal document issued after the effective date of this Resolution provides a more favorable or advantageous mechanism or policy than this Resolution, the application thereof shall be decided by the People's Council of Hanoi City.

2. The Government, within its assigned tasks and powers, shall have the following responsibilities:

a) To organize the implementation of this Resolution; to direct related agencies to cooperate with the People's Committee of Hanoi City to streamline administrative procedures, shorten the processing time for issues not yet decentralized or delegated to Hanoi City;

b) To direct the People's Committee of Hanoi City to conduct mid-term reviews of the implementation of this Resolution to report to the National Assembly at the final session in 2022, and comprehensive reviews of the implementation of this Resolution to report to the National Assembly at the final session in 2025, and propose improvements to the legal system regarding mechanisms and policies that have been piloted.

3. The People's Council and the People's Committee of Hanoi City, within their assigned tasks and powers, shall have the responsibility to organize the implementation of this Resolution.

The People's Committee of Hanoi City shall conduct mid-term and comprehensive reviews of the implementation of this Resolution, report to the People's Council of Hanoi City, and report to the Government so that the Government can report to the National Assembly for consideration and decision as provided for in Clause 2 of this Article.

4. The Standing Committee of the National Assembly, the Ethnic Council, the Committees of the National Assembly, the Delegation of the National Assembly of Hanoi City, and the National Assembly deputies, within their assigned tasks and powers, shall supervise the implementation of this Resolution.

This Resolution was adopted by the National Assembly of the Socialist Republic of Vietnam, the 14th term, the 9th session, on June 19, 2020./.