State auditors have found incorrect application of land rent remission policy in some provinces that did not adjust land rents after the rent stabilization period expired.
The State Audit has released a report on the 2020 budget implementation and estimates for 2021.
The collections from domestic sources in 2020 are estimated to reach VND1,110 trillion, which means a loss of revenue of VND148.5 trillion, a decrease of 11.7 percent compared with estimates and 12.4 percent compared with the implemented figure of 2019.
Regarding collections from land and houses, the budget collection is expected to increase by VND26.7 trillion, an increase of 21.4 percent, mostly from the increase in land use fees (the government estimates revenue of over VND25.1 trillion from this source this year, or 26.2 percent higher than the estimates), land rent, and water surface rent (expected to increase by VND2.413 trillion, or 9.5 percent).
However, the State Audit asked the government to thoroughly consider the capability of implementing estimates as the audit in the first nine months of the year discovered that the application of the policy on land rent remission in some localities did not comply with current regulations. The localities did not adjust the land rent when the land rent stabilization period ended.
Auditors discovered the application of land rent remission policy and the defining of land use fees and land rent in some projects did not comply with current regulations (Ba Ria – Vung Tau). Businesses were slow in following procedures for rental exemption (Da Nang, Gia Lai).
In some cases, local authorities did not adjust the land rent when the land rent stabilization period finished (Da Nang, Lam Dong, Lang Son, Hai Duong, Tra Vinh and Ba Ria – Vung Tau).
Long An province has been found not fully and promptly declaring lump-sum land rentals for subleased land in the form of one payment for the entire lease period before July 1, 2014 according to regulations.
Meanwhile, using land while there was no land lease decision and land lease contracts was discovered in Hai Phong and Da Nang; and leasing of commercial land not through land use right auctions was found in Ben Tre.
With the auditing results as of September 30, 2020, the State Audit has proposed a financial settlement to reduce state budget spending by VND10.7 trillion.
Some ministries and central agencies have been found not following regulations of the State Budget Law on handling expense balance and estimate balance; and not strictly complying with current regulations on the allocation and assignment of estimates to affiliated units.
Some provinces have been found using budget revenue sources wrongly, including Long An (VND209 billion), Lam Dong (VND99.2 billion), Tra Vinh (VND20.4 billion) and Ninh BInh (VND17.3 billion). Three provinces used increased receipts from land use for their regular spending, namely Long An (VND209 billion), Ha Tinh (VND6.7 billion) and Ninh Binh (VND2.9 billion).
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