Why is Quang Nam province requesting to return nearly 154 billion VND to the central government?

The People's Committee of Quang Nam province has requested the return of nearly 154 billion VND of central government budget funds (foreign capital) that were allocated in 2025.

On March 7th, the People's Committee of Quang Nam province submitted a report to the Standing Committee of the Provincial People's Council requesting approval for the repayment of the remaining central government budget funds (foreign capital) for 2025.

Central Vietnam regional linkage project, Quang Nam province. (Photo: Vinh Nhan).

According to the Quang Nam Provincial People's Committee, the Prime Minister has allocated over 7,111 billion VND in public investment capital to the province for 2025. Of this amount, over 436 billion VND is foreign capital.

The People's Committee of this province has allocated a detailed plan for foreign capital in 2025 for projects totaling over 278 billion VND.

The remaining unallocated foreign capital plan amounts to nearly 158 billion VND.

Of this amount, the Provincial People's Committee has reported to the Provincial People's Council to allocate over 3.9 billion VND to the Tam Ky City Wastewater Collection, Treatment and Drainage Project.

The remaining capital plan includes nearly 154 billion VND reserved for allocation to the Central Region Linkage Project in Quang Nam province.

However, to date, the Central Region Linkage Project has not received approval from competent authorities for adjustments to the investment policy or the investment project, thus failing to meet the conditions for advising on capital allocation in 2025.

Furthermore, to approve the adjustment of the project's investment policy , the Ministry of Finance's opinion must be sought regarding the increase of over 156 billion VND in central government budget counterpart funding, due to increased compensation costs, land clearance, and construction costs driven by inflation.

On the other hand, the remaining funds cannot be allocated to other projects because the required balance between central government budget allocations and provincial budget borrowings is not guaranteed.

According to the Quang Nam Provincial People's Committee, the Prime Minister has requested localities to urgently allocate all state budget funds for 2025 in detail during the first quarter of 2025, without further delay. If the allocation is not completed by the end of the first quarter of 2025, the Government will withdraw the allocation and reallocate it to other projects.

"However, the timeframe for the Central Region Linkage Project in Quang Nam province to complete the necessary procedures to receive funding is not guaranteed," the Quang Nam Provincial People's Committee stated.

Therefore, the People's Committee of Quang Nam province requests the Standing Committee of the Provincial People's Council to agree on the principle of returning the remaining central government budget capital (foreign capital) for 2025, amounting to nearly 154 billion VND, so that the Prime Minister can allocate it to other projects in need.

"If the project completes the investment procedures as prescribed in 2025, the Provincial People's Committee will direct the Department of Finance to review and advise on transferring funds from other projects to supplement the project for continued implementation," the report stated.

Source: https://www.baogiaothong.vn/vi-sao-quang-nam-xin-tra-lai-trung-uong-gan-154-ty-dong-192250307201210643.htm