Many reasons lead to localities asking to adjust the borrowing budget.
According to the Ministry of Finance, as of August 31, 2023, 33 localities have requested adjustments to the loan capital estimate, leading to changes in the borrowing level of each locality compared to the level decided by the National Assembly.
The content of this adjustment has been compiled by the Ministry of Finance and reported to the Government. Currently, the Ministry of Finance is waiting for official appraisal opinions from the Finance and Budget Committee.
It is known that some of the reasons for the request to adjust the re-borrowing capital plan of localities are because the localities have projects that have not completed investment procedures.
Projects are adjusted down to match the assigned capital allocation plan or to match the needs and progress of project implementation; projects encounter problems with site clearance, bidding, etc., so the capital plan cannot be fully disbursed.
On the contrary, some localities requested to adjust the loan capital plan because: The provinces have projects that will expire in 2023, so they need to supplement the capital plan for disbursement; the provinces requested to supplement the capital plan to match the implementation progress in 2023 of the projects.
Resolutely eliminate projects that are unable to disburse funds
To limit the situation of requesting to adjust the loan estimate in the coming time, the Ministry of Finance recommends that localities need to properly assess the disbursement capacity of projects to propose appropriate capital plans, especially for projects facing difficulties and obstacles, projects that are having to adjust investment policies, and resolutely eliminate projects that are unable to disburse.
For projects whose planning year is the final disbursement year, it is necessary to evaluate the remaining work volume and the ability to complete it within the planning year to propose an appropriate amount of capital to be allocated to the capital plan because these projects account for a fairly high proportion of capital plan payments.
Localities need to improve the quality of project preparation to ensure that licensed projects can be implemented according to plan.
The Ministry of Finance recommends that Ho Chi Minh City seriously review its capital planning methods to ensure efficiency and suitability because Ho Chi Minh City is the locality that returns the most budget estimates, accounting for 50% of the total capital plan to return.
As for the Hanoi People's Committee, immediately after the Finance and Budget Committee met to review this content, on October 31, 2023, the Hanoi People's Committee issued a document requesting not to increase the re-borrowed capital estimate as previously proposed but to reduce the re-borrowed capital estimate. The Ministry of Finance requested that the Hanoi People's Committee seriously learn from experience in reviewing and adjusting the capital plan, clearly understanding the difficulties, obstacles and implementation status of projects in the area to ensure consistency and appropriateness in developing and proposing adjustments to the capital plan.
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