Proposal for strong decentralization and delegation of authority in public debt management

To continue implementing the policy of decentralization and delegation of power associated with the arrangement and streamlining of the organizational apparatus and improving governance efficiency, Clauses 8, 11, 19, 21, Article 1 of the draft Law stipulates the delegation of authority to the Prime Minister and the Ministry of Finance in a number of debt management tasks, while enhancing the initiative and self-responsibility of local authorities in deciding and using the budget.

Accordingly, the draft supplements clearer regulations on the duties and powers of the President and the Government and amends and supplements the respective powers and duties of the Prime Minister and the Ministry of Finance (including Clauses 1 and 2, Article 12; Clause 4, Article 13; Clause 7, Article 14; Clause 1d, Article 15; Clause 4, Article 23; Clause 6, Article 24; Clause 6, Article 29; Clauses 1d and 2b, Article 43; Point a, Clause 1, Article 53; Clause 1, Point c, Clause 4 and Clause 5, Article 61 of the Law on Public Debt Management).

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The draft rearranges, supplements and amends the provisions in Clause 6, Article 29 related to ODA loans and foreign concessional loans. Specifically, it adds provisions on “Signing, ratifying, amending, supplementing and extending international treaties on ODA loans and foreign concessional loans in the name of the State”.

It is expected that the Prime Minister will submit to the President for decision on negotiating, signing and ratifying these international treaties, ensuring compliance with the President's authority according to the Constitution. The Prime Minister will decide on amendments and supplements to international treaties on ODA loans and foreign preferential loans on behalf of the State.

For international treaties on ODA loans and foreign concessional loans in the name of the Government, the draft stipulates that the Government decides to sign, and the Prime Minister decides on the policy of negotiation, amendment and supplementation.

Regarding ODA loan agreements and foreign concessional loans on behalf of the Government, the Ministry of Finance is delegated to proactively negotiate when meeting sufficient conditions; the signing, amendment, supplementation and extension of loan agreements are submitted by the Ministry of Finance to the Prime Minister for decision as per current regulations. The decentralization and delegation of authority provisions in Clause 6, Article 29 and corresponding amendments in Clauses 1 and 2, Article 12; Clause 4, Article 13; Clause 7, Article 14; Clause 1d, Article 15, when approved, will significantly reduce the time for implementing procedures and processes for foreign loan agreements.

The draft also removes the provision in Clause 4, Article 13, decentralizing the approval of debt limits to the Prime Minister. At the same time, review and adjust the provisions in Clause 4, Article 23 and Clause 6, Article 24 on the 3-year public debt management program and the annual public debt borrowing and repayment plan. The essential information requirements for the macro forecasting framework for the 3-year public debt management program are clearly defined, integrating the process of establishing a debt management program with the annual debt borrowing and repayment plan. Instead of the Prime Minister approving, the draft decentralizes the Ministry of Finance to proactively manage and announce in order to meet the disclosure requirements according to international practices.

At Point a, Clause 1, Article 53 on the organization of borrowing and debt repayment of local governments, the draft removes the provision that provinces must seek approval from the Ministry of Finance on the conditions and terms of local government bonds. Decentralize the authority to the provincial People's Committee to report to the People's Council of the same level to approve the issuance plan, ensuring the total loan amount is within the scope approved by the National Assembly.

Pursuant to the provisions of Article 4 on public debt classification and to ensure flexibility in the publication of annual public debt borrowing and repayment plans, as well as the 3-year public debt management program, in accordance with international practices on public debt disclosure, the draft amends Clause 1, Point c Clause 4 and Clause 5 Article 61 on public debt information disclosure. Accordingly, the Government is delegated to regulate in detail the publication of data and information on public debt, and at the same time, supplement the form of publication through publications or electronic media - the current popular form.

Source: https://baodautu.vn/de-xuat-phan-cap-phan-quyen-manh-trong-quan-ly-no-cong-d343819.html