The government is about to seek approval from the National Assembly for the issuance of a distinctive budget and financial regime designated for two biggest economic hubs of the country, Hanoi and HCM City, to ensure sufficient resources for investment and development.
According to the draft plan, the two cities will be given more powers on budget management and also more capital for investment and development, allowing them to quickly raise more funds to meet the demand on capital and debt repayment.
Specifically, the municipal people’s councils shall approve the decentralisation of budget collection and expenditure in these two cities prepared by the municipal people’s committees on the basis of the approved state budget estimates and guidance from the finance ministry.
Reportedly, HCM City had asked for discretionary powers on its own spending regime, whereas the request has been declined by the government, who said expenditure must conform with the national policy on state salaries and state revenue. Nevertheless, the government has allowed the two cities to disburse in advance capital from the municipal budget for infrastructure projects funded by local sources.
Hanoi and HCM City will also receive more incentives in the usage of official development assistance (ODA) funds, especially for infrastructure projects in transportation, water supply and drainage, and environmental sanitation. They will also be entitled to approach to foreign loans for investment in these projects in necessary cases.