The Ministry of Finance said that in reality, most provinces and cities have established Land Development Funds; When this Decree takes effect, it is only necessary to review and consolidate the organizational structure, amend and supplement the Charter of organization and operation of the Fund. However, to cover the realities that may arise, the draft Decree stipulates as follows:
Based on the actual situation in the locality, the Provincial People's Committee assigns the Department of Finance or other specialized agencies under the Provincial People's Committee to preside over and coordinate with local authorities to prepare documents. Application for establishment of Land Development Fund, submitted to the Provincial People's Committee.
According to a report from the Ministry of Finance, as of 2023, 57 localities have established Land Development Funds, of which 27 Funds operate under an independent model, 30 Funds operate under a trust model.
The Provincial People's Committee approves the Project to establish the Fund, promulgates the Establishment Decision, and Charter for organization and operation of the Land Development Fund on the basis of the Project to establish the Fund approved by the Provincial People's Council. via.
Land development fund is an off-budget state financial fund, directly under the Provincial People's Committee established by the Provincial People's Committee, has charter capital, operates independently of the state budget, does not for profit, preservation and development of capital.
The Fund has legal status, seal, and independent accounting. Name: "Land development fund" combined with the name of the province or centrally run city.
The Land Development Fund has the function of receiving and mobilizing capital according to regulations to perform the task of advancing capital and being reimbursed for advanced capital according to the provisions of this Decree and relevant laws.
Organizational structure and operating model of the Fund
To comply with the requirements of strengthening Fund management, the draft Decree supplements and amends a number of the following regulations:
The number of members of the Management Board is an odd number; The Chairman of the Management Council is the Chairman of the Provincial People's Committee; The Vice Chairman and other members of the Management Council must include Directors of the Departments: Finance, Planning and Investment, Natural Resources and Environment and Director of the Fund.
In case of entrusting the Development Investment Fund or other local financial funds to manage the capital and operations of the Land Development Fund, the Management Council, Control Board, and Operational Management Agency of the Development Fund shall Land is the Management Board, Control Board, and Operational Executive Agency (Executive Board) of the Trusted Fund but must ensure the following conditions: (i) The Chairman of the Management Board is the Chairman of the Committee provincial people; (ii) Members of the Fund Management Council must include Directors of the Departments: Finance, Planning and Investment, Natural Resources and Environment.
Operating capital of the Fund
Authorized capital:
Option 1: The charter capital of the Land Development Fund is allocated from the development investment expenditure of the local budget. Based on the actual situation and ability to balance the local budget, the Provincial People's Committee submits to the People's Council at the same level to decide on the initial charter capital and additional charter capital allocated to the Development Fund. land.
Option 2: Every year, based on the actual situation and ability to balance the local budget, the Provincial People's Committee submits to the People's Council at the same level to decide on the level of additional charter capital for the Fund from the source. development investment expenditure of the local budget.
Charter capital management:
Option 1: The Fund's charter capital is deposited at the State Treasury of provinces and centrally run cities.
Option 2: The Fund's charter capital is deposited at the State Treasury of provinces and centrally run cities or commercial banks with dominant State capital in the area.
Using operating capital of the Land Development Fund
The Draft Decree stipulates that the Fund's operating capital will be used to:
Advance capital to units and organizations performing compensation, support and resettlement tasks to carry out compensation, support and resettlement according to the provisions of land law.
Advance capital to land fund development organizations to build infrastructure on the land fund that has been allocated for management to increase the value of the land to auction land use rights to serve the socio-economic development of the country. local.
Advance capital to organizations assigned to implement land support policies for ethnic minorities.
Advance capital to organizations assigned to perform the task of developing housing for resettlement, renovation, and rebuilding of apartment buildings according to the provisions of housing law.
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