Decentralized but transparent to effectively manage loan use

Chairman of the Economic and Financial Committee Phan Van Mai said that the Economic and Financial Committee requested the Government to be transparent and ensure effective management of capital mobilization and use. Photo: Quochoi.vn.

On November 3, continuing the 10th Session, the National Assembly listened to the Presentation and Report on the review of the draft Law amending and supplementing a number of articles of the Law on Public Debt Management.

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 amends and supplements the content of 23/63 articles. Of which, 17/63 articles are amended and supplemented, some provisions in 5 articles are abolished and new provisions are added in 5 articles.

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, the draft Law has stipulated the delegation of power to the Prime Minister and the Ministry of Finance in a number of tasks on debt management, enhancing the initiative and self-responsibility of local authorities in deciding and using the budget.

Accordingly, additional regulations are added to clarify the duties and powers of the President and the Government, and amend and supplement the duties and powers of the Prime Minister and the Ministry of Finance.

The draft Law also proposes to supplement regulations requiring ministries, provincial and municipal People's Committees, enterprises with 100% charter capital held by the State, and subsidiaries of enterprises with 100% charter capital held by the State 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 donor's letter of interest (if any), reducing the amount of information that the competent authority needs to provide at this stage...

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 perfect the apparatus of the political system and the legal system, promoting decentralization and delegation of power.

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 carefully assessed, it is necessary to continue to research and synthesize practices and make proposals for comprehensive revision.

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.

Supplementing the tasks of the Ministry of Finance to ensure flexibility in implementation 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 capital 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 lending agencies are not subject to credit risks and to carefully assess the impacts and risks to ensure public debt safety.

Source: https://laodong.vn/thoi-su/phan-quyen-nhung-minh-bach-de-quan-ly-hieu-qua-su-dung-von-vay-1602760.ldo