According to Resolution 10 dated July 20, 2017 of the City People's Council, the loan capital balance in the 5-year medium-term public investment plan from 2016 to 2020 is 11,654 […]
According to Resolution 10 dated July 20, 2017 of the City People's Council, the loan capital balance in the 5-year medium-term public investment plan for 2016-2020 is 11,654 billion VND. This loan source is determined on the basis of calculation based on the maximum limit of 40% of the city's budget revenue entitled to according to decentralization specified in Decree 89 dated July 29, 2017 of the Government stipulating a number of specific financial and budgetary mechanisms and policies for Hai Phong city.
However, in reality there are many problems and the city is expected to only mobilize loan capital of about 3,835 billion VND, a decrease of 7,819 billion VND. Of which, the loan capital for the 3 years 2016-2018 only reached about 1,500 billion VND. In 2019, the expected loan limit assigned by the Ministry of Finance is 1061 billion VND. In 2020, it is expected to increase by 20% compared to 2019, only reaching about 1,273 billion VND.
Cat Bi International Airport was invested and built with budget capital, part of which was loan capital. Photo: Duy Thinh
With the above ability to mobilize capital, the city's public investment projects identified and arranged from loan capital will also be affected. This is also one of the reasons why the city had to readjust the 5-year medium-term public investment plan for 2016-2020 both in terms of capital sources as well as project portfolio to meet actual requirements.
Thus, public investment projects using city loans are still passive. The reason is that the regulations in Decree 89 of the Government on specific financial and budget mechanisms and policies for Hai Phong city have many difficulties and obstacles due to being controlled by the maximum loan limit according to the decision to assign estimates of the Prime Minister and the Minister of Finance each year (according to the resolution of the National Assembly on the annual State budget deficit for Hai Phong city). This loan limit is usually very low, only reaching a few hundred billion VND to more than 1,000 billion VND/year as above. Meanwhile, according to the provisions of the 2015 Budget Law, Hai Phong city can borrow no more than 30% of local budget revenue according to decentralization. And theo Decree 89, the loan balance of Hai Phong city's budget does not exceed 40% of the local budget revenue received according to decentralization. For example, in 2018, the Central Government assigned Hai Phong's domestic budget revenue estimate of 22,772 billion VND, of which local revenue according to decentralization was 18,028 billion VND, corresponding to that in 2018, the city's budget had a maximum loan balance of 7,211.2 billion VND. If you subtract the outstanding debt balance of the city budget as of December 31, 2017, which is VND 1,283.9 billion, the city budget is allowed to borrow a maximum of VND 5,927.3 billion in 2018. However, the city was only assigned a loan estimate for 2018 by the Ministry of Finance of VND 1,106.6 billion, equal to 18.7% of the maximum allowed additional loan capital mentioned above.
These inadequacies have been reported many times to the National Assembly, the Government, ministries and central branches but there has been no effective solution. Therefore, in the program and plan to implement Resolution 45 of the Politburo on building and developing Hai Phong city to 2030, with a vision to 2045, the city assigns tasks to relevant branches such as the Department of Finance and the Department of Finance to continue to advise and propose appropriate policy mechanisms to effectively implement Decree 89 of the Government. From there, the city can mobilize more loan capital, an important component of the total capital to implement public investment projects, meeting the requirements of Hai Phong's rapid and breakthrough development in the coming period.
Thanh Nhan
baohaiphong.com.vn
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