The Ministry of Finance has just issued Document No. 13094/BTC-QLN reporting to Government leaders on the reasons for the situation where many localities have requested to adjust the 2023 re-borrowing budget.
27 localities propose to reduce re-borrowing budget
According to the Ministry of Finance, as of August 31, 33 localities have proposed to adjust the re-borrowed capital estimate, leading to changes in the borrowing level of each locality compared to the level decided by the National Assembly . Specifically, 27 localities have proposed to reduce the re-borrowed capital estimate, with a total proposed reduction of VND5,565.149 billion; 6 localities have proposed to increase the re-borrowed capital estimate, with a total proposed increase of VND349.344 billion.
The Ministry of Finance recommends that localities need to properly assess the disbursement capacity of projects to propose appropriate capital plans (illustrative photo)
Among the project groups requesting to adjust the re-borrowing budget, the group of projects that have not completed investment procedures is the group with the largest amount (47% of the total proposed reduction); the group of projects that have ended, have expired disbursement period or no longer need to disburse the unallocated provincial capital is the group with the second largest amount (23% of the total proposed reduction) and has the largest number of localities requesting to transfer.
On the contrary, some localities requested to adjust the loan capital plan because: the provinces have projects that will expire in 2023, so they need to supplement the capital plan for disbursement; the provinces requested to supplement the capital plan to match the implementation progress in 2023 of the projects.
Resolutely eliminate projects that are unable to disburse funds
To limit the situation of requesting to adjust the loan estimate in the coming time, the Ministry of Finance recommends that localities need to properly assess the disbursement capacity of projects to propose appropriate capital plans; especially projects with difficulties and problems, projects that are having to adjust investment policies; resolutely eliminate projects that are unable to disburse.
For projects whose planning year is the final disbursement year, it is necessary to evaluate the remaining workload and the ability to complete it within the planning year to propose an appropriate amount of capital for capital planning because these projects account for a fairly high rate of capital plan repayment.
Localities need to improve the quality of project preparation to ensure that licensed projects can be implemented according to plan.
In particular, the Ministry of Finance recommends that Ho Chi Minh City seriously review the method of capital planning to ensure efficiency and suitability because Ho Chi Minh City is the locality that returns the most budget estimates, accounting for 50% of the total capital plan to return.
As for the Hanoi People's Committee, right after the Finance - Budget Committee met to review this content, on October 31, the Hanoi People's Committee issued a document requesting not to increase the re-borrowed capital estimate as previously proposed, but to reduce the re-borrowed capital estimate.
The Ministry of Finance requested the Hanoi People's Committee to seriously learn from experience in reviewing and adjusting capital plans, clearly understanding difficulties, obstacles and implementation status of projects in the area to ensure consistency and suitability in building and proposing adjustments to capital plans.
For the general departments, the Ministry of Finance proposed to limit the assignment of public investment capital plans to foreign sources to avoid the situation of lacking re-borrowed capital plans. At the same time, be more cautious in assigning capital plans to new projects that have not signed loan agreements, to avoid proposing capital plans higher than capacity.
According to Decision 458/QD-TTg of the Prime Minister approving the public debt borrowing and repayment plan in 2023, the local government's borrowing and repayment plan is as follows: borrowing from the Government's foreign loan re-borrowing source and other loan sources of about VND 27,198 billion.
Local government debt repayment is 4,993 billion VND, including principal payment of 2,804 billion VND and interest payment of 2,189 billion VND.
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