Transparency and ensuring effective management of capital mobilization and use

Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: Pham Thang

Abolish regulations related to the 3-year public debt management program

The draft Law on amending and supplementing a number of articles of the Law on Public Debt Management presented by Minister of Finance Nguyen Van Thang said that the draft Law consists of 3 Articles.

The Draft Law amends and supplements the contents of 23/63 articles, of which 17/63 articles are amended and supplemented, some provisions in 5 articles are abolished and new provisions in 5 articles are added.

Minister of Finance Nguyen Van Thang presents the Draft Law on amending and supplementing a number of articles of the Law on Public Debt Management. Photo: Pham Thang

To continue implementing the policy of decentralization and delegation of power, associated with the arrangement and streamlining of the organizational apparatus, and improving administrative efficiency, Clauses 8, 11, 19, and 21, Article 1 of the draft Law stipulates the delegation of power to the Prime Minister and the Ministry of Finance in a number of tasks related to debt management, enhancing the initiative and self-responsibility of local authorities in deciding and using the budget. Accordingly, it adds clearer regulations on the duties and powers of the President and the Government, and amends and supplements the powers and duties of the Prime Minister and the Ministry of Finance.

The draft Law also proposes to supplement regulations for Ministries, Provincial People's Committees, City People's Committees, 100% State-owned enterprises, and subsidiaries of 100% State-owned enterprises to prepare proposals for ODA loans and foreign preferential loans and send them to the Ministry of Finance for evaluation and submission to the Prime Minister for approval as a basis for implementing investment procedures for programs and projects. Information on the Loan Proposal focuses on 4 contents of the expected foreign loan and the letter of interest from the sponsor (if any), reducing the amount of information that the competent authority needs to provide at this stage.

Delegates attending the meeting. Photo: Pham Thang

Supplementing Clause 6, Article 24 stipulates the time limit for the Prime Minister to approve the annual public borrowing and debt repayment plan to synchronously implement the state budget estimate, public investment plan, and annual borrowing and debt repayment plan when approved by competent authorities.

Some contents were omitted to ensure consistency with the provisions of the State Budget Law (amended), including abolishing provisions related to the 3-year public debt management program, abolishing regulations on forms of borrowing from the State financial reserve fund and procedures for submitting to the Prime Minister for decision on borrowing from the State financial reserve fund...

Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: Pham Thang

Shorten the approval procedure for re-lending loan limits and annual government guarantee limits

The review report presented by Chairman of the Economic and Financial Committee Phan Van Mai stated that the Committee agreed on the necessity of amending and supplementing a number of articles of the Law on Public Debt Management to fully institutionalize the Party's policies and orientations to arrange and perfect the apparatus of the political system and perfect the legal system, promote decentralization and delegation of power, ensure synchronization in institutional reform, and at the same time, remove a number of difficulties and obstacles that have arisen in practice.

Chairman of the Economic and Financial Committee Phan Van Mai presents the Verification Report. Photo: Pham Thang

Regarding the scope of amendments, the Committee recommends that the drafting agency review and focus on urgent issues, practical difficulties, and those that need to be amended to ensure consistency in the legal system. For unclear contents, with many different opinions, and whose impacts have not been thoroughly assessed, it is necessary to continue to study and synthesize practical experiences and make recommendations for comprehensive amendments.

The Committee basically agrees with the draft Law amending and supplementing a number of contents related to the decentralization of authority for the Prime Minister to decide on the loan limit for re-lending and the annual Government guarantee limit associated with the approval of the Public Debt Loan and Repayment Plan, contributing to shortening the procedures for approving the loan limit for re-lending and the annual Government guarantee limit. Adding tasks of the Ministry of Finance to ensure flexibility in the implementation process and reduce administrative procedures.

The Committee recommends that the Government continue to review to ensure that regulations on decentralization and delegation of power go hand in hand with increased objectivity, transparency and ensuring effective management of loan mobilization and use.

The Committee also agreed on regulations that public service units are allowed to access ODA loans and foreign preferential loans. However, it is recommended to consider regulations that the lending agency is not subject to credit risks, and to carefully assess the impacts and risks to ensure public debt safety; to review and make appropriate and strict regulations in cases where public service units do not meet the conditions for re-borrowing...

Source: https://daibieunhandan.vn/minh-bach-va-bao-dam-quan-ly-hieu-qua-huy-dong-su-dung-von-vay-10394092.html