Nghe An faces pressure to arrange annual debt repayment budget

2019 debt must be paid 1,032 billion VND

Taking time to analyze the province's financial security, delegate Le Xuan Dai said that up to now, Nghe An's debts, including treasury debts and bank loans, are below the allowed deficit ceiling of 1,900 billion VND.

Overall, the province's debts do not exceed the budget deficit ceiling, but delegate Le Xuan Dai expressed concern that Nghe An's debts are mainly bank loans and the annual debt repayment pressure is very large.

Delegate Le Xuan Dai speaks at the session. Photo: Thanh Cuong

Specifically, there are 2 debts: loans from the State Treasury and preferential credit loans from the State through banks (investment in consolidating canals, traffic, etc.)

Both of these items are under pressure to arrange the annual debt repayment budget. However, for many years now, Nghe An has had to request debt extension, in 2019, requesting a debt extension of 215 billion VND.

Specifically, in 2019, Nghe An had to pay about 1,032 billion VND in debt due, but after deducting 215 billion VND in debt extension to 2020, it had to pay about 816 billion VND in debt but only arranged about 716 billion VND, the remaining 100 billion VND was strived to balance from the excess revenue from land use rights fees in 2018-2019.

Delegate Le Xuan Dai analyzed and added that even in the 2019 debt repayment arrangement, 200 billion VND had to be borrowed from the budget to arrange debt repayment, which means "debt rollover".

Do not let the situation of "blue army, red army" in land auction

Referring to the socio-economic situation of the province, delegate Le Xuan Dai appreciated the great efforts of the province when this year, the growth rate of total product in the province reached 8.77% and the budget revenue was estimated at 13,141 billion VND, higher than the assigned estimate of 12,691 billion VND.

Some revenues exceeded the estimate, notably revenue from import-export activities was assigned 1,260 billion but has reached 1,700 billion. Revenue from land use rights, initially determined to be about 2,000 billion but has now reached 2,600 billion.

Authorities on duty to protect land auctions in Quynh Luu district. Photo: Archive.

“I believe that by December 31, 2018, the actual budget revenue may be higher than the forecast figure,” said delegate Le Xuan Dai.

However, according to the representative of Nghia Dan unit, the overall budget revenue met the budget revenue estimate. However, domestic revenue, if deducting land use rights fees, was short, only reaching 94% of the estimate.

Mr. Le Xuan Dai said that the five most important revenue items were not completed: revenue from centrally managed enterprises, locally managed enterprises, revenue from foreign-invested enterprises; revenue from non-state industry, trade and services.

In particular, delegate Le Xuan Dai expressed concern that in 2018, the number of projects and registered investment capital were lower than in 2017; while this is one of the important driving forces to increase budget revenue.

Mr. Le Xuan Dai also discussed the budget revenue target at the end of the 18th Provincial Party Congress term of 25,000 - 30,000 billion VND, but up to now the achieved figure is still far away, which many delegates are concerned about.

Loading and unloading containers at Cua Lo Port. Photo: Archive

Delegate Le Xuan Dai affirmed that the budget revenue target is not arbitrary. The province has met expectations for major projects such as VSIP, large cement projects, Quynh Lap thermal power plant... but the implementation process has not met expectations.

In addition, revenues from hospital fees and tuition fees according to the mechanism at the time of establishing the Congress's targets were included in the revenue and expenditure records, but now they are not included...

Regarding the 2019 budget revenue target of 13,498 billion VND, delegate Le Xuan Dai assessed that this is the target that the People's Committee has set to ensure the highest level and on the basis of ensuring feasibility.

Regarding the issue of collecting money from granting land use rights in 2019, which was proposed at 2,300 billion VND, delegate Le Xuan Dai assessed that it was not high and had been thoroughly discussed.

"The issue of concern is that land use fee exploitation must be carried out in accordance with the planning, the auction of land use rights must be more objective and transparent, not allowing the situation of "blue team, red team", ensuring the maximum source of budget input", said delegate Le Xuan Dai.