The Hanoi People's Council on June 27 approved a new resolution on the allocation of revenue sources and expenditure responsibilities among different levels of the city's budget for the 2023-2025 period.

The resolution also sets new norms for budget distribution and adjusts the percentage share of revenues between municipal and local budgets.

This new resolution amends and supplements certain provisions of Resolution No.22/2022/NQ-HDND dated December 8, 2022.

According to the council's Economic and Budget Committee, the revision is necessary to align the revenue and expenditure assignments with the upcoming transition to the two-tier local government model, set to take effect on July 1, 2025.

The adjustments aim to ensure the uninterrupted implementation of the city's fiscal tasks during this transitional period.

Under the resolution, the newly established wards will now be classified as independent budget units.

Their sources of revenue and spending responsibilities will follow the same rules previously applied to commune-level budgets, as outlined in Resolution No.22/2022/NQ-HDND.

The City People's Council also approved the transfer of all revenue sources and expenditure responsibilities from the district-level budgets to the city-level budget.

This shift will serve as the basis for assigning and managing budgetary tasks to relevant agencies and units under the new administrative structure.

One key change is the adjustment in the percentage division of shared revenues between budget levels.

For shared revenues that previously had a split allocation between the city and district levels, the new resolution eliminates the district-level share.

Instead, the full percentage will now go to the city-level budget. In the case of ward-level revenues, the city will receive 100%.

These adjustments reflect Hanoi's proactive and timely efforts to revise its fiscal legal framework in accordance with the transition to a two-tier local government model.

The changes are also consistent with guidelines issued by the Ministry of Finance in Document No.4025/BTC-NSNN dated April 2, 2025, which outlines principles for managing public finance and state budgets during the reorganization of administrative units.

This revised framework provides the legal and financial foundation for Hanoi to allocate and assign state budget estimates to both city-level and ward-level administrative units, ensuring that all departments and agencies have the necessary operating funds starting from July 1, 2025.