Nghe An implements plan to borrow and repay public debt in 2023

Pursuant to Decision No. 458/QD-TTg dated April 28, 2023 of the Prime Minister on approving the Public Debt Borrowing and Repayment Plan for 2023 and the 3-year Public Debt Management Program for the period 2023 - 2025; Decision No. 3503/QD-UBND dated October 8, 2022 of the Provincial People's Committee promulgating the coordination regulations in local government debt management in Nghe An province,The Provincial People's Committee assigned the Department of Planning and Investment:

- Advise the Provincial People's Committee to continue performing the assigned tasks in Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program; Resolution No. 11/NQ-CP dated January 30, 2022 of the Government on the Socio-Economic Recovery and Development Program and implementing Resolution No. 43/2022/QH15 of the National Assembly.

- Continue to urge the disbursement of public investment for programs and projects using foreign government loans, report to the Provincial People's Committee on solutions and propose solutions to avoid wasting investment capital, slow implementation progress, and avoid legal disputes on foreign public debt management.

- Preside and coordinate with the Department of Finance and departments, branches, units and localities to advise competent authorities to propose projects using local capital borrowed from the Government with foreign loans, ensuring that the total outstanding loan balance does not exceed 40% of the provincial budget revenue enjoyed according to the decentralization under Clause 1, Article 3, Resolution No. 36/2021/QH15 dated November 13, 2021 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Nghe An province.

Nghe An continues to urge the disbursement of public investment capital for programs and projects using foreign government loans. Photo: WHA Industrial Park

- Timely advise the Provincial People's Committee to transfer the 2023 central budget public investment plan for projects using foreign government loans according to the detailed list and capital level allocated for each project based on the review of implementation progress and the ability to disburse foreign capital according to the provisions of the Law on Public Investment. Timely advise the Provincial People's Committee to report to the Ministry of Planning and Investment and the Ministry of Finance to submit to competent authorities to assign additional or adjusted capital plans from the central budget if necessary.

- Timely guide investors and project management boards using foreign government loans to implement a number of new points in the management and use of official development assistance (ODA) and preferential loans from foreign donors according to Decree No. 20/2023/ND-CP dated May 4, 2023 of the Government amending and supplementing a number of articles of Decree No. 114/2021/ND-CP dated December 16, 2021 on the management and use of official development assistance (ODA) and preferential loans from foreign donors (effective from March 1, 2023).

The Provincial People's Committee assigned the Department of Finance:

- Continue to advise the Provincial People's Committee in the field of finance and budget in conjunction with drastic and synchronous implementation of guiding viewpoints, policies and solutions to restructure the State budget and manage public debt according to documents of the Central and the province.

- Advise on the management and operation of budget finance, borrowing and debt repayment of local authorities to ensure the limit of budget deficit and debt of local authorities according to the provisions of the State Budget Law 2015; ensure the annual budget deficit for the period 2023 - 2025 is about 0.3% of GDP.

- Coordinate with investors using local capital to borrow foreign loans from the Government to proactively arrange resources to fully, promptly and on time fulfill local obligations to repay the Government the principal, interest and fees according to signed agreements.

- Implement State management, reporting and information provision on local government borrowing and debt repayment as prescribed. Improve efficiency and strengthen public debt management capacity as prescribed by the 2017 Law on Public Debt Management, and improve the qualifications of civil servants working in debt management.

The Tax and Treasury sectors coordinate with commercial banks in collecting and paying revenues to the State budget. Photo: Tran Chau

Assign investors and project management boards of projects using foreign government loans:

- Synchronously and effectively implement solutions to accelerate disbursement of public investment capital for programs and projects using foreign government loans.

- Timely report to the Department of Planning and Investment for synthesis and propose to the Provincial People's Committee to remove obstacles that slow down the progress of implementation and disbursement of foreign loans, avoid wasting investment capital and legal disputes on management of foreign public debt.

- Investors and project beneficiaries are obliged to repay principal, interest and fees for projects using local capital borrowed from the Government from foreign loans: Proactively arrange resources to fully, promptly and on time fulfill the obligation to repay the provincial budget for principal, interest and fees according to signed agreements and borrowing and repayment plans approved by the Provincial People's Committee.

- Strictly follow the periodic reporting regime (quarterly, 6-monthly, annually and foreign loan repayment reporting) in a timely and complete manner to provide loan information according to the prescribed form, and send it to the Department of Finance to synthesize the borrowing and debt repayment situation of local authorities according to regulations.

Deliver to Nghe An State Treasury:

- Direct the State Treasuries under the province to coordinate with investors of projects using foreign government loans to control expenditures and account in the State budget fully and promptly for foreign government loans and local capital borrowed from the Government.

Coordinate with the Department of Finance to fully and promptly record local government debt in the State budget for local loans to the Government from foreign loans to ensure full reflection of local government debt obligations.

- Promptly send to the Department of Finance for synthesis and propose to the Provincial People's Committee to remove obstacles that affect the accounting of local government debt, control expenditures and record revenues and expenditures in the State budget for projects using foreign government loans.

Requesting departments, branches, localities and units to organize implementation.