Submit to the National Assembly to issue additional 170 trillion VND of bond capital

On the afternoon of October 23, Minister of Planning and Investment Bui Quang Vinh, authorized by the Prime Minister, presented the Report on the Government bond issuance plan for the 2014-2016 period to the National Assembly. Based on the review and synthesis of investment capital needs of unfinished investment projects using Government bond capital and urgent needs as requested by ministries, branches and localities, the Government submitted to the National Assembly for permission to issue an additional VND 170 trillion in Government bond capital for the 2014-2016 period (not including the VND 75 trillion already included in the 2012-2015 plan). The Government submitted to the National Assembly for issuance of an additional VND 170 trillion in bond capital

Minister of Planning and Investment Bui Quang Vinh. Photo:http://giaothongvantai.com.vn

With the plan to issue an additional 170 trillion VND, the public debt and government debt balance by the end of 2015 and the end of 2016 will still be safe according to regulations, with the ability to mobilize and balance debt repayment sources.

Based on the total additional Government bond capital of 170 trillion VND, the Government submitted to the National Assembly a plan for use, including: Allocating 61.68 trillion VND to invest in the National Highway 1A and National Highway 14 projects (Ho Chi Minh Road section through the Central Highlands). Adding capital to unfinished investment projects using Government bond capital from 2011-2015 to promote construction progress, soon completing and putting into use 73.32 trillion VND. Allocating 20 trillion VND of counterpart capital for ODA projects (the counterpart capital for projects managed by ministries, branches and central agencies and supporting poor and disadvantaged localities according to Decision 60/QD-TTg of the Prime Minister). Allocating 15 trillion VND to invest in rural infrastructure development according to the National Target Program on New Rural Development, focusing mainly on poor communes in mountainous areas, ethnic minority areas and other disadvantaged areas.

According to the Government, with the plan to supplement capital from Government bonds for the above objectives, it will supplement capital for investment in building socio-economic infrastructure, contributing to the continued completion of infrastructure; creating a favorable environment to mobilize more resources from domestic and foreign economic sectors for development investment; effectively implementing the goals and development orientations of the 5-year plan 2011-2015 and the Socio-Economic Development Strategy 2011-2020.

It is expected that approximately 75% of the unfinished transportation, irrigation, and hospital projects under the 2011-2015 government bond plan will receive sufficient capital to complete them; effectively utilizing the invested capital.

In particular, National Highway 1A and National Highway 14 are the two most important traffic routes of the country, which will be invested and completed in the next 3 years, making an important contribution to promoting socio-economic development, ensuring national defense and security of the country and the Central Highlands. The total number of additional hospital beds nationwide is expected to be 4,500 in 2014 and 4,500 in 2015, reaching the target of total hospital beds/10,000 people of 22.5 (2014) and 23 (2015). The addition of Government bonds will help speed up the disbursement of ODA capital, making an important contribution to the breakthrough in building a modern infrastructure system of the country. Contributing to the timely implementation of the goals of building new rural areas, creating conditions to promote structural transformation and production development, improving the lives of people in difficult areas.

Regarding the impact on inflation, the Government pointed out that the issuance of Government bonds does not increase the total amount of money in circulation, so it basically does not affect the price level. However, increasing Government spending through the issuance of Government bonds also affects the demand for related goods and services, and also affects the prices of each item and the general price level in a certain period of time. Therefore, along with the implementation of the plan to supplement Government bonds, it is necessary to synchronously implement policy solutions to ensure macroeconomic stability, control inflation, and stabilize people's lives.

According to QĐND Online - LY