27 localities propose to reduce re-borrowing of more than 5,500 billion VND of foreign capital

The Ministry of Finance has just submitted a report to the Government on adjusting the 2023 re-borrowing budget of localities. The total borrowing budget of localities in 2023 decided by the National Assembly is VND 34,511.5 billion. Of which, the re-borrowing budget from the Government's foreign loans is VND 18,394.8 billion.

During the implementation process, as of August 31, 33 localities requested adjustments to the re-borrowed capital estimates, leading to changes in the borrowing level of each locality compared to the level reported by the Government and approved by the National Assembly .

Specifically, 6 localities proposed to increase the re-borrowing budget, with a total proposed increase of 349,344 billion VND from the following localities: Binh Dinh, Hanoi, Hai Duong , Hai Phong, Nam Dinh, Phu Tho.

After review, the Ministry of Finance found it possible to consider supplementing the budget for these localities on the principle that localities are fully responsible for ensuring the disbursement of the entire additional re-loan capital budget.

However, up to 27 localities proposed to reduce the re-borrowing budget, with a total proposed reduction of VND 5,565,149 billion, including An Giang, Bac Giang, Bac Ninh, Ben Tre, Binh Duong, Binh Thuan, Ca Mau, Can Tho, Dak Lak, Khanh Hoa, Kon Tum, Lai Chau, Lam Dong, Lang Son, Lao Cai, Ninh Binh, Phu Yen, Quang Binh, Quang Nam, Quang Ninh, Quang Ngai, Ho Chi Minh City, Thanh Hoa, Tra Vinh, Vinh Phuc, Tay Ninh, Tien Giang.

The Ministry of Finance said that the adjustment of each locality's borrowing level in 2023 needs to be reported to the National Assembly for consideration and decision. This agency assessed that reducing the re-borrowing capital plan will reduce the local budget deficit and reduce the overall deficit.

The Ministry of Finance proposed that the Government approve the increase in the re-borrowing estimate from the Government's foreign loans in 2023 for 6 localities: Binh Dinh (VND 31,248 billion), Hanoi (VND 221,693 billion), Hai Duong (VND 50.2 billion), Hai Phong (VND 25.7 billion), Nam Dinh (VND 13,154 billion), Phu Tho (VND 7,349 billion).

At the same time, the budget of 27 localities was reduced with a total reduction of VND 5,565,149 billion.

To minimize the current situation of large cuts in re-borrowed capital estimates, the Ministry of Finance suggests that localities that adjust their budgets down in large amounts need to seriously learn from experience in preparing re-borrowed capital estimates, ensure that the estimates are close to the actual implementation capacity of the projects, and resolutely cut down the capital plans of projects and items that cannot be disbursed within the year.

Removing bottlenecks, accelerating disbursement of public investment capital In 2023, the scale of public investment capital will increase significantly, the number of projects requiring disbursement will be large, so the pressure related to the progress of disbursement of public investment capital will be very large. Therefore, it is necessary to remove bottlenecks to accelerate disbursement by the end of the year.

Source