On October 14, information from the Ho Chi Minh City People's Committee said that the unit has just sent a report to the Ministry of Finance on assessing the impact of public debt when implementing the urban railway project.
Ho Chi Minh City is developing an urban railway development project with a capital demand of 22.3 billion USD for the 2026-2030 period. Photo: Chi Hung
According to the Ho Chi Minh City People's Committee, the draft Ho Chi Minh City Planning for the period 2021-2030, with a vision to 2050 (being completed and submitted to the Prime Minister), the city determined the total medium-term public investment capital demand for the period 2026-2030 to be nearly 62.59 billion USD (1,502,207 billion VND).
Of which, the capital for the project to develop the urban railway system in Ho Chi Minh City is 21.755 billion USD (about 34.76%).
The City People's Committee assessed that the capital needed to implement the urban railway system development project is very large, accounting for a high proportion of the medium-term and annual public investment plan of Ho Chi Minh City.
Besides, the demand for current phase projects of the city is very large, the local budget revenue received according to decentralization cannot meet it, so it is necessary to mobilize additional funds in many other forms, including mobilization from loan capital.
Metro Line No. 1 (Ben Thanh - Suoi Tien) is expected to be put into operation in December 2024. Photo: My Quynh
The city is also implementing ODA projects with large-scale re-borrowing to implement the urban railway system development project.
Therefore, the total annual borrowing and budget deficit need to be reviewed and adjusted by the National Assembly and the Government to ensure sufficient loan capital needs of Ho Chi Minh City in the coming period, ensuring project implementation.
Regarding the feasibility of capital mobilization, Ho Chi Minh City reported that the central budget revenue increase from revenue sources is divided according to the percentage between the central budget and local budget. Currently, the central budget accounts for 79%, Ho Chi Minh City accounts for 21%.
The increased central revenue (79%) will be regulated to the central budget and the National Assembly Standing Committee will decide to reward the excess of the revenue estimates divided among budget levels according to the provisions of Article 59 of the 2015 State Budget Law.
To meet the capital demand for the urban railway system development project, Ho Chi Minh City proposed to retain the increased central budget revenue from revenues divided between the central budget and the city budget to implement the project.
The City People's Committee stated that Ho Chi Minh City's retention of the above-mentioned increase in central budget revenue still ensures 79% of the central budget revenue according to the revenue estimate assigned by the National Assembly.
The entire revenue increase mentioned above shall only be used for the purpose of implementing Conclusion No. 49-KL/TW of the Politburo.
In addition, Ho Chi Minh City plans to use budget revenue to invest in building an urban railway system from land areas planned for TOD development.
Including funds collected from auctioning land plots directly managed by the State around stations of urban railway lines 1 and 2 and funds collected from auctioning land plots after compensation, support and resettlement work around stations of urban railway lines 3, 4 and 5.
Regarding Ho Chi Minh City's investment capital, it is expected to use from 10% to 40%/year (depending on project progress) of the city's annual public investment capital to prioritize investment in the Urban Railway System Development Project.
Ho Chi Minh City also mobilizes capital from loan sources through issuing local government bonds, borrowing from domestic financial institutions, other domestic organizations and from foreign loans from the Government to re-lend to the city.
Source: https://www.baogiaothong.vn/vi-sao-tphcm-de-xuat-giu-lai-phan-ngan-sach-thu-vuot-du-toan-de-lam-metro-192241014150302188.htm
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