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HCMC to Submit Proposal to Keep More Yearly Income for Internal Use

Currently, Saigon is allowed to keep 18% of its yearly revenue. The rest of the money goes to the state budget managed by the Central Committee.

According to Zing, the Ho Chi Minh City People’s Committee is working on a proposal suggesting that the central committee gradually increase the proportion of annual income that the city can retain from 18% to 33% in the next 10 years.

Municipal party committee secretary Nguyen Thien Nhan suggests that the increase should follow three phases: from 2018 to 2020, the proportion stays the same, in the 2021-2025 period, the percentage of annual income the city is allowed to retain should be increased to 24%, and during the 2026-2030 period, the number will be raised to 33%. The first period was already approved by the central government.

Nguyen Thanh Phong, the chairman of the HCMC People’s Committee, shares that the reason for this proposal is that Saigon has been suffering from a lack of financial resources for its development projects. Construction and installment of infrastructures aimed at alleviating traffic congestion and improving floodwater drainage, wastewater treatment and environmental protection are either stalled or have progressed slowly due to lack of funding.

Phong also mentioned that of all the cities in the world, the proportion of annual income which Saigon is allowed to retain is among the lowest. This was not the case in 2003, said Phong. Back then, the annual income proportion the city was allowed to keep was 33%; however, the central government adjusted the number for the 2017-2020 period to 18%.

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