Why did Quang Nam ask to return nearly 154 billion VND to the Central Government?

Quang Nam Provincial People's Committee proposed to return nearly 154 billion VND of the remaining central budget capital (foreign capital) allocated in 2025.

On March 7, the People's Committee of Quang Nam province sent a report to the Standing Committee of the Provincial People's Council requesting approval to refund the remaining central budget capital (foreign capital) in 2025.

Central region connectivity project, Quang Nam province. (Photo: Vinh Nhan).

According to the People's Committee of Quang Nam province, the Prime Minister assigned the province a public investment capital plan for 2025 of more than VND 7,111 billion. Of which, foreign capital is more than VND 436 billion.

The People's Committee of this province has allocated detailed foreign capital plans for 2025 for projects of more than 278 billion VND.

The remaining unallocated foreign capital plan is nearly 158 billion VND.

Of this amount, the Provincial People's Committee reported to the Provincial People's Council to allocate more than 3.9 billion VND for the Tam Ky City Wastewater Collection, Treatment and Drainage Project.

The remaining capital plan of nearly 154 billion VND is reserved to allocate to the Central Region Linkage project, Quang Nam province.

However, up to now, the Central Region Regional Linkage Project has not been approved by the competent authority to adjust the investment policy and approve the adjustment of the investment project, so it has not ensured the conditions for consulting on capital allocation in 2025.

In addition, to approve the adjustment of the project investment policy, it is necessary to consult the Ministry of Finance on the central budget counterpart fund increasing by more than 156 billion VND, due to increased compensation costs, site clearance and construction costs due to inflation.

On the other hand, the remaining capital cannot be allocated to other projects because it does not ensure the balance according to the prescribed ratio between the central budget allocation and the provincial budget re-borrowing.

According to the People's Committee of Quang Nam province, the Prime Minister requested localities to urgently allocate in detail the entire state budget capital plan for 2025 in the first quarter of 2025, without further delay. If it is not completed by the end of the first quarter of 2025, the Government will withdraw the allocation for other projects.

"However, the time for the Central Region Linkage Project in Quang Nam province to complete the required procedures to receive capital allocation is not guaranteed," said the People's Committee of Quang Nam province.

Therefore, the People's Committee of Quang Nam province proposed that the Standing Committee of the Provincial People's Council agree on the policy of returning the remaining central budget capital plan (foreign capital) in 2025 of nearly 154 billion VND for the Prime Minister to allocate to other projects in need.

"In case the project completes investment procedures as prescribed in 2025, the Provincial People's Committee will direct the Department of Finance to review and advise on transferring capital from other projects to supplement the project for continued implementation," the report stated.

Source: https://www.baogiaothong.vn/vi-sao-quang-nam-xin-tra-lai-trung-uong-gan-154-ty-dong-192250307201210643.htm