Promoting the effectiveness of capital entrusted from local budgets

The capital entrusted from the local budget (NSĐP) transferred to the Vietnam Bank for Social Policies (CSXH) in recent years has truly been an important resource, helping many poor households and other policy beneficiaries in the province to have the conditions to invest in production development, create more jobs, increase income, and stabilize life.

Mr. Le Minh Loc, Director of the Provincial Social Policy Bank branch, said: During its operation, the Representative Board of the Provincial Social Policy Bank regularly advises on promoting the implementation of the plans of the Provincial Party Committee and the Provincial People's Committee; along with that, directs the system of transaction offices of the Social Policy Bank at all levels to actively coordinate and advise the People's Councils at all levels to arrange for the local budget to be entrusted to the bank, helping to supplement financial capacity and be more proactive in implementing the Government 's preferential credit loan programs.

Notably, after the issuance of Directive No. 40-CT/TW dated November 22, 2014 of the Secretariat on strengthening the Party's leadership over social policy credit, the State budget capital entrusted to the Bank for Social Policies has annually completed the annual plan. In 2023, the State budget capital entrusted to the Bank for Social Policies reached 20 billion VND, completing 100% of the plan, bringing the total entrusted capital to date to 106.7 billion VND; of which, the provincial budget is 81.45 billion VND, the budgets of districts and cities are 24.32 billion VND and the capital of the Provincial Youth Union is 447 million VND. From the additional capital, the associations and organizations receiving the trust, the People's Committees of the communes coordinate with the bank to organize the review of loan recipients to ensure compliance with regulations, speed up the disbursement progress according to the assigned targets; Thanks to that, loan programs are implemented continuously and stably, with total outstanding debt currently reaching over 3,376 billion VND, with more than 80,100 loan customers.

Farmers in Thuan Bac district develop economic models from preferential credit policy capital.

Along with the good implementation of the loan program, the connection of social credit with activities supporting the transfer of science and technology has been paid attention to and focused on. Most households that borrowed capital have changed their awareness and used capital for the right purpose. A typical example is the household of Mr. Duong Quang Sang, Binh Nghia village, Bac Son commune (Thuan Bac), after receiving a loan of 100 million VND from the credit program to support job creation, maintain and expand employment, he invested in barns, planted 2 sao of grass to raise 7 cows and 40 goats. Income from livestock farming has significantly improved family life, and children have been educated properly. According to the assessment, in addition to the achieved results, the need to access loans to do business, develop the economy, expand production scale, and create jobs for policy beneficiaries in the province is still very large; However, the balance of local capital entrusted through the provincial branch of the Social Policy Bank is still low, accounting for only 3.1% of total capital.

Mr. Le Minh Loc added: To contribute to completing the plan set by the Provincial Party Committee and the Provincial People's Committee by 2025, the entrusted State budget capital will reach 6-8% of the total policy credit capital for loans in the area. In the coming time, the unit will continue to coordinate and advise on the arrangement of entrusted State budget capital to the Social Policy Bank to ensure the set goals. At the same time, focus on coordinating with localities to improve credit quality and operational efficiency at commune transaction points, savings and loan groups to quickly bring capital to beneficiaries. Thereby, contributing to sustainable poverty reduction, ensuring social security and building new rural areas.

Hong Lam

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