Hanoi adopts new budget allocation formula and revenue sharing percentages

11:12 PM, Wed November 26, 2025

The city will apply a point-based system converted from central-government principles and criteria, combined with Hanoi-specific factors, to allocate capital-construction funds to commune-level administrations.

Hanoi adopts new budget allocation formula and revenue sharing percentages- Ảnh 1.

Deputies vote and approve the draft resolution.

On November 26, at the 28th session of the Hanoi People's Council, delegates approved a resolution on budget-allocation norms and revenue-sharing percentages across the city's administrative levels.

The city will apply a point-based system converted from central-government principles and criteria, combined with Hanoi-specific factors, to allocate capital-construction funds to commune-level administrations.

Key criteria include population (average population and ethnic-minority population), development level (projected domestic revenue) and area (natural land area and forest ratio).

Additional criteria reflect local challenges such as population density, the number of public schools not meeting national standards, heritage-site quantity, dyke and irrigation system conditions and communes affected by national-defense structures, natural disasters or climate change.

For recurrent-expenditure allocations, the resolution sets norms for both city- and commune-level agencies, emphasizing autonomy and accountability.

In administrative management for Party and mass-organization agencies, expenditure norms follow a declining-scale method to encourage efficient budget use.

For Level-I budget units with fewer than 30 staff, administrative-management spending is set at VND95 million (US$3,600) per person per year at the city level and VND89 million ($3,375) at the commune level.

Support-staff contract spending ranges from VND168 million ($6,370) to VND231 million ($8,760) per person per year at the city level and from VND157 million ($5,950) to VND220 million ($8,340) per person per year at the commune level. Car-use expenses are set uniformly at VND140 million ($5,300) per car per year.

For commune-level education, spending norms are based on student numbers and differ between urban and non-urban areas.

These norms ensure adequate payment of salaries and allowances based on a base salary of VND2.34 million ($2.34) per month, with the city covering shortfalls when minimum requirements exceed norms.

For example, preschool allocations are VND16.5 million ($625) per student per year in urban areas and VND18 million ($680) in non-urban areas.

The resolution takes effect on January 1, 2026.

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