Amending 3 important policies in the Law on State Budget

VCN - The Ministry of Finance proposed regulations allowing local budgets to invest in the construction of central infrastructure works in the locality and support other localities to invest in the construction of regional and inter-regional infrastructure projects, contributing to mobilizing resources from the budgets of financially capable localities for inter-regional projects to be completed soon, helping localities in the region promote socio-economic development.
The Ministry of Finance proposed regulations allowing the mobilization of local resources for inter-regional projects to promote socio-economic development. Photo: VNA
The Ministry of Finance proposed regulations allowing the mobilization of local resources for inter-regional projects to promote socio-economic development. Photo: VNA

Mobilizing local resources for inter-regional projects

While acknowledging the positive outcomes of implementing the Law on State Budget, the Ministry of Finance has pointed out certain limitations encountered during the implementation process. For instance, objective factors have led to changes in revenue structure, with the central budget playing a dominant but decreasing role, while there is a growing demand for greater proactivity in local budgets. The formulation, consolidation, and allocation of the state budget, as well as budget execution and settlement, have also revealed some shortcomings and inadequacies that require further study to address.

Regarding the policy that allows localities to use their local budgets to support the central budget, assist other localities, and provide aid to foreign localities, the Ministry of Finance proposes a regulation permitting local budgets to be invested in the construction of central government infrastructure projects within their localities and to support other localities in implementing or participating in the construction of regional and inter-regional infrastructure projects.

According to the Ministry of Finance, there is a significant demand for investment in regional and inter-provincial infrastructure projects. Meanwhile, some localities in the region face socioeconomic difficulties and are unable to secure sufficient funding for infrastructure construction, while some projects using the central budget cannot be fully allocated or allocated sufficient capital for dynamic and regionally connected projects. On the other hand, localities with better conditions are not allowed to support the central budget's expenditure tasks within their own localities or in more disadvantaged areas.

Therefore, allowing local budgets to be invested in central government infrastructure projects within their localities and to support other localities in implementing or participating in the construction of regional and inter-regional infrastructure projects would help mobilize resources from the budgets of financially capable localities for regional projects, leading to their early completion. Moreover, this would enhance the competitiveness of the economy and facilitate socio-economic development in localities within the region.

Overcoming the situation of “capital waiting for projects”

In addition, the Ministry of Finance proposes a clear definition of development investment expenditures as stipulated in the Law on Public Investment and other development investment expenditures.

Accordingly, the draft regulation clearly specifies the use of central budget development investment for state investment tasks and capital support (including interest rate support) for economic organizations. It also supplements the provision on the use of local budget development investment to compensate for interest rate differences, management fees, and delegated lending through policy banks; and to support enterprises, organizations, and individuals. The draft Law also proposes adding a provision regarding investment decisions and investment expenditures for programs and projects using state budget capital. In addition to complying with the Public Investment Law, tasks and projects arranged outside the medium-term public investment plan must be implemented in accordance with the Law on the State Budget as well as relevant legal regulations and will be summarized and reported to the competent authority at the end of the medium-term period. At the same time, it supplements regulations to provide a basis for using other development investment sources to implement investment projects outside the medium-term public investment plan, clearly distinguishing between public investment expenditures under the Law on Public Investment and other development investment expenditures.

According to the Ministry of Finance's explanation, the demand for investment in projects outside the medium-term public investment plan (projects not included in the medium-term public investment plan at the beginning of the term, or with insufficiently allocated capital) arises annually, especially for projects related to disaster prevention, climate change adaptation, security, and defense. Meanwhile, according to the Law on Public Investment, public investment projects use public investment capital and must be included in the medium-term plan assigned by the competent authority, and the public investment plan is formulated for a five-year medium-term period.

Therefore, in the case of new projects, ministries, central agencies, and localities must go through a process of reporting to the competent authority to adjust and supplement the investment list at multiple levels, with multiple stages of appraisal, which takes a long time (1-2 years) and cannot be immediately implemented but must wait for the supplementation of the medium-term public investment plan and the implementation of procedures for formulating, appraising, and approving new projects to be assigned an annual plan for implementation, bidding, contractor selection, and disbursement. As a result, the situation of "capital waiting for projects" is very common and has not been addressed. In the draft amendment to the Law on State Budget, the Ministry of Finance proposes a clear provision on this issue to remove obstacles in the implementation of public investment projects.

By Hoài Anh/Thanh Thuy

Related News

Accelerate implementation of solutions to disburse public investment capital

Accelerate implementation of solutions to disburse public investment capital

VCN - Facing the impact of storm No. 3 on economic growth, many experts continue to believe that public investment will play a key role in economic recovery and growth for the entire year of 2024. However, there is only one quarter left until the end of 2024. The target of disbursing at least 95% of investment capital is facing many difficulties.
Avoiding export disruptions when implementing EU anti-deforestation regulations

Avoiding export disruptions when implementing EU anti-deforestation regulations

VCN - Goods produced illegally, on land deforested after 31/12/2020 or that are not traceable, do not comply with regulations and cannot be placed on the EU market.
Removing public investment bottlenecks

Removing public investment bottlenecks

VCN - Public investment is one of the three pillars promoting economic growth, along with consumption and export. However, the disbursement of public investment in many localities across the country is still slow due to problems in compensation, project site clearance, difficult and complicated land acquisition, land procedures, environmental impact assessment, project investment procedures, etc.
Building a Vietnamese brand to reach the world from unique values

Building a Vietnamese brand to reach the world from unique values

VCN - Dr. Ho Xuan Huong, Ho Chi Minh City University of Economics, believes that to have a world-class brand, businesses must pay special attention to business orientation and goals and create unique values ​​to demonstrate the core values ​​of the business.

Latest News

New regulations on foreign indirect investment in Vietnam drafted

New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols and hopefully make them speedier.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating conditions for enterprises and taxpayers to develop stable production and business as well as facilitate travel and trade activities.
How to handle export processing enterprises forgetting to open a corresponding import declaration

How to handle export processing enterprises forgetting to open a corresponding import declaration

VCN - From 2014 to 2019, Dragonjet Vietnam Co., Ltd. (headquartered in Que Vo Industrial Park, Bac Ninh) opened 17 on-site export declarations of domestic enterprises, however, the company “forgot” to open a corresponding import declaration. Dragonjet Vietnam Co., Ltd proposed the Customs authority to instruct tax procedures and policies and whether failure to register a corresponding declaration will result in tax imposition?
Food safety rules relaxed for emergency imports

Food safety rules relaxed for emergency imports

VCN - Products and goods provided by foreign governments and international organizations for emergency relief to people recovering from storm No. 3 are exempt from state inspection of food safety and quality.

More News

Checking and reviewing the classification of exported copper

Checking and reviewing the classification of exported copper

VCN - In order to ensure that the classification is consistent with the declared code, the General Department of Vietnam Customs requests the customs departments of provinces and cities to strengthen the inspection and review of the classification of exported copper goods.
Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

VCN - The Ministry of Finance is drafting a decree amending and supplementing a number of articles of Decree No. 115/2022/ND-CP dated December 30, 2022 of the Government promulgating Vietnam's preferential export tariff schedule and special preferential import tariff schedule to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for the 2022-2027 period. The Decree is expected to take effect from the date of signing.
Must strictly manage duty-free goods

Must strictly manage duty-free goods

VCN - The General Department of Customs has just responded to the Binh Phuoc Customs Department to guide Binh Duong Water and Environment Corporation to implement regulations on the management of tax-free imported goods.
Amend the law to protect the rights of accountants

Amend the law to protect the rights of accountants

VCN - Promoting decentralization, delegation of authority, improving state management capacity in the field of accounting, enhancing the responsibility of leaders, etc will ensure the legitimate rights of accountants, prevent corruption and waste.
Simplification is not enough, enterprises need stronger administrative reform

Simplification is not enough, enterprises need stronger administrative reform

VCN - Commenting on the Draft Report on improving business regulations to support productivity growth in Vietnam, the Vietnam Chamber of Commerce and Industry (VCCI) said that regulations on administrative procedures need stronger reform.
Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi

Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi

VCN - To support people and businesses with more resources to cope with difficulties and challenges in production and business due to the impact of typhoon No. 3 (Yagi), the Ministry of Finance proposed a 15-30% reduction in land rents in 2024.
MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP

MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP

VCN - The Ministry of Finance (the General Department of Vietnam Customs) has received comments on the draft Decree amending and supplementing a number of articles of Decree No. 08/2015/ND-CP providing specific provisions and guidance on enforcement of the customs law on customs procedures, examination, supervision and control procedures. In addition to revision related to on-the-spot import and export activities, the draft also proposes to supplement new regulations to meet requirements of implementing digital customs, ensuring compliance with practical situations and promoting customs modernization.
Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

VCN – According to the assessment, the increase in the Law on Special Consumption Tax not only aims to regulate the consumption of products harmful to the health and the environment, improve the health of the population and enhance labor productivity and boost sustainable development, but also raise the State revenue.
Chile officially issues electronic C/O form VC from November 1, 2024

Chile officially issues electronic C/O form VC from November 1, 2024

VCN - The General Department of Customs has just sent a notice to the local customs departments related to electronic Certificate of Origin (C/O) in the Vietnam - Chile Free Trade Agreement (FTA)
Read More

Your care

Latest Most read
New regulations on foreign indirect investment in Vietnam drafted

New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols and hopefully make them speedier.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating
How to handle export processing enterprises forgetting to open a corresponding import declaration

How to handle export processing enterprises forgetting to open a corresponding import declaration

VCN - From 2014 to 2019, Dragonjet Vietnam Co., Ltd. (headquartered in Que Vo Industrial Park, Bac Ninh) opened 17 on-site export declarations of domestic enterprises, however, the company “forgot” to open a corresponding import declaration. Dragonjet Vie
Food safety rules relaxed for emergency imports

Food safety rules relaxed for emergency imports

Products and goods provided by foreign governments and international organizations for emergency relief to people recovering from storm No. 3 are exempt from state inspection of food safety and quality.
Checking and reviewing the classification of exported copper

Checking and reviewing the classification of exported copper

General Department of Vietnam Customs requests the customs departments of provinces and cities to strengthen the inspection and review of the classification of exported copper.
Mobile Version