Nghị quyết 23/2021/QH15

Resolution No. 23/2021/QH15 dated July 28, 2021 on regarding national financial, borrowing and public debt repayment plan for 2021-2025 period

Nội dung toàn văn Resolution 23/2021/QH15 regarding national financial borrowing and public debt repayment plan


NATIONAL ASSEMBLY
-------

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

No. 23/2021/QH15

Hanoi, July 28, 2021

 

RESOLUTION

REGARDING NATIONAL FINANCIAL, BORROWING AND PUBLIC DEBT REPAYMENT PLAN FOR 2021 – 2025 PERIOD

NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on State Budget No. 83/2015/QH13 amended by the Law No. 59/2020/QH14;

Pursuant to the Law on Public Debt Management No. 20/2017/QH14;

Pursuant to the Law on Public Investment No. 39/2019/QH14 amended by the Law No. 64/2020/QH14;

In the light of the Report No. 24/TTr-CP dated July 16, 2021, the Report No. 23/BC-CP dated July 16, 2021 of the Government, the Review Report No. 12/BC-UBTCNS15 dated July 21, 2021 of the Committee on Financial and Budgetary Affairs; the Feedback and Explanatory Report No. 27/BC-UBTVQH15 dated July 28, 2021 of the National Assembly’s Standing Committee and judgements of the National Assembly’s deputies, 

HEREUNDER RESOLVES

Article 1. Overall objectives

Effectively mobilize, allocate, distribute, manage and use all resources, including internal resources playing strategic, fundamental and long-term roles which are effectively combined with external resources playing significant roles, to achieve socio-economic development objectives, ensure macroeconomic stability, promote economic growth, solve social security issues, strengthen national defense and security, proactively engage in international integration; continue to restructure the state budget, increase the proportion of sustainable revenue, make the most efficient use of recurrent expenditure to increase spending on capital investment activities, ensure the leading role of the central budget, push up decentralization and delegation of authority, grant more autonomy to the local budget, raise and personalize responsibilities; strictly manage public debt, maintain security and safety for the national financial system; tighten up rules and discipline, improve accountability, ensure public availability and transparency; strengthen supervision, inspection, examination and audit, and improve the effectiveness and efficiency of national financial management.

Article 2. Specific objectives

1. Total state budget revenue in the 2021 - 2025 period is expected to reach about VND 8.3 million billion; the rate of mobilization of resources into the state budget on average will account for at least 16% of GDP, including taxes and fees accounting for about 13% - 14% of GDP; the proportion of domestic collections on average will account for about 85% - 86% of total state budget revenue.

2. Total state budget expenditure for the 2021 - 2025 period is expected to reach about VND 10.26 million billion of which average capital investment expenditure and average recurrent expenditure accounts for 28% and approximately 62-63%, respectively. In the course of implementation, strive to increase the rate of capital investment expenditure to about 29% or decrease the rate of recurrent expenditure to about 60%.

Total state budget expenditure for capital investment is expected to reach approximately VND 2.87 million billion, including nearly VND 300 thousand billion in expenditure derived from offshore capital and about VND 248 thousand billion from equitization and state capital divestment capital.  

3. The average state budget deficit in the 2021-2025 period is expected to account for 3.7% of GDP, including the average central budget deficit which accounts for 3.4% of GDP, and the average local budget deficit which accounts for 0.3% of GDP; in the course of implementation, strive to reduce such rate to less than 3.7% of GDP.

4. Total borrowed amount in the period 2021 - 2025 is expected to be as much as VND 3,068 million billion, including about VND 2.9 million billion borrowed by the central budget; the central Government's obligation to directly repay debt is expected to be about VND 1.7 million billion; total amount borrowed by the local budget is expected to be VND about 148 trillion and the amount borrowed by each local budget must fall within the borrowing limit prescribed by law on state budget; the local government's obligation to repay debt is expected to be about VND 35.3 trillion.

5. Government guarantee limit and borrowing limit on ODA on-lending and preferential offshore loans during the 2021 – 2025 period:

a) The growth rate of Government-guaranteed loan balance will not exceed the nominal GDP growth rate year on year. In particular, the maximum guarantee limit for the two policy banks should be equal to the annual principal repayment obligation;

b) The net withdrawal limit of government-guaranteed loans during the whole period must not exceed VND 76.5 trillion and the withdrawal limit on the Government’s loans for on-lending would not exceed VND 222 trillion.

6. Prudential targets for public debt:

a) The annual public debt ceiling shall not exceed 60% of GDP; the warning threshold shall be 55% of GDP;

b) The annual government debt ceiling shall not exceed 50% of GDP; the warning threshold shall be 45% of GDP;

c) The annual national foreign debt ceiling shall not exceed 50% of GDP; the warning threshold shall be 45% of GDP;

d) The Government's direct debt repayment obligation (excluding the obligation to repay debt incurred from on-lending) shall not exceed 25% of total state budget revenue;

dd) The national foreign debt repayment obligation (excluding the obligation to repay under-12-month loans) shall not exceed 25% of total export turnover of goods and services.

Article 3. National financial orientations

1. Regarding the state budget revenue: Press ahead with amending and perfecting collection policies to restructure budget revenues, promote reasonable revenue growth in combination with nurturing sustainable revenue sources. Strengthen measures to make best use of revenue surpluses, combat loss of revenue, reduce tax arrears, and expand the tax base.

2. Regarding the state budget expenditure: Gradually restructure state budget expenditure with a view to increasing the proportion of expenditure on capital investment, gradually reducing the proportion of recurrent expenditure in association with reforming the mechanism for allocation of recurrent expenditure according to the results of task performance; meeting expenditures on humans, social security, health care, environment, national defense, security, education, training, science and technology, etc. in accordance with law.

3. Regarding the state budget balancing: Amounts borrowed for offsetting against state budget deficit shall be used for capital investment purposes only. The state budget spending must be within the economic capacity and the state budget’s borrowing must be within the debt repayment capacity. Strictly control provisional debt obligations, examine newly-provided guarantees with the objectives of ensuring compliance with regulations and efficiency.

Article 4. Missions and solutions

1. Strictly comply with the Law on State Budget. Study and amend the State Budget Law and related legal documents to meet practical requirements with a view to renovating the budget decentralization mechanism, basically overcoming the overlapping situation in state budget management, increasing the leading role of the central budget; promote decentralization, encourage local jurisdictions to be creative and to increase collection and mobilization of resources for socio-economic development within their remit, grant and allow local authorities autonomy and self-responsibility for their budget decision and use. Reform the mechanism for allocation of budget to agencies and units, especially those adopting specific financial and budgetary mechanisms; formulate specific financial and budgetary management mechanisms and policies applicable to a number of eligible local jurisdictions, especially major cities, in order to mobilize revenues and provide for resources for use in socio-economic development tasks under local jurisdiction.

2. Adopt possible solutions to achieving a higher rate of mobilization of resources into the state budget, exploiting revenue surpluses, expanding and preventing tax base erosion, fiercely combating revenue loss, striving to reduce the ratio of tax arrears to total state budget revenue to less than 5%. Expeditiously amend and perfect a number of tax laws, especially the Law on Value Added Tax, the Law on Corporate Income Tax, and the Law on Special Consumption Tax, etc. Focus on revenues from land, natural resources and minerals to avoid any loss. Restrain the integration of social policies into tax-related legislation. Review and finalize regulations on tax incentives to avoid loss of revenue, ensure transparency, fairness and feasibility to follow development trends and conform to international practices. Promulgate consistent instructional documents to succeed in implementing the Law on Tax Administration, to ensure correct and full collection and overcome shortcomings and issues arising during the period of implementation, especially with respect to transfer pricing, e-commerce and digital business activities. Concentrate fees and charges collected by state management agencies and state enterprises in the state budget according to the provisions of the Law on Fees and Charges.

3. Continue to restructure state budget expenditure with a view to ensuring sustainability, reducing the proportion of recurrent expenditure, increasing the proportion of capital investment expenditure; ensure resources available for national defense and security tasks, implement salary policy reforms, ensure social security; give priority to education - training, science, technology and innovation; focus more resources on environmental protection, climate change adaptation, development of information technology and telecommunications infrastructure, make connections to the national database and lay foundation for national digital transformation in the new context. Concentrate resources to implement wage reforms as from July 1, 2022. Avoid using the residual wage reform amounts for investment in capital construction and other purposes, unless otherwise permitted by the National Assembly’s resolutions. The Government must be responsible for compliance of its Ministries, central and local authorities with the provisions of the National Assembly's resolutions on the use of the residual wage reform amounts for other purposes, ensuring adequate funds for wage reforms in accordance with the Resolution No. 27-NQ/TW. The annual amounts of increased revenue and reduced expenditure must be preferred to fund wage reforms according to the Resolution of the 7th Plenary Session of the 12th Party Central Committee, help reduce overspending and repay outstanding principal and, when being used for investment purposes, must be concentrated on major projects in the medium-term public investment plan for the 2021 - 2025 period to accelerate the completion and performance of other tasks as prescribed by the Law on State Budget.

Improve the efficiency of allocation, management and use of financial and state budget resources and raise the responsibilities of ministries, central and local authorities; put an end to the careless and prolonged allocation of public investment capital, especially ODA loans and foreign preferential loans, and align the effective use of investment capital with thrift and anti-extravagance practice.

Scrutinize the maintenance, management and use of off-budget state financial funds. Amend and supplement regulations on organization and operation of these funds in order to improve operational transparency and efficiency of funds; strengthen the state management, supervision, inspection, examination and audit of funds, reorganize funds whose revenue or expenditure coincides with those of the state budget or are no longer suitable.

4. Diversify funding sources and onshore or offshore borrowing methods. Issue government bonds with more emphasis placed on those with long maturity which is 5 years or more, and flexibly issue those with various maturity periods of less than 5 years to meet the needs of capitalization and development of Government bond markets; strive to issue those with the average maturity ranging from 9 to 11 years, and continue to restructure Government bond debt portfolios. Increase the proportion of foreign loans used for supporting the general budget in order to elevate the autonomy in the management and use of loans. Issue international bonds when demands and favorable market conditions exist.

5. Manage to settle and repay debts in full and on time so that overdue debt would not affect the Government's commitments and the national credit factor. Strictly control the provisional debt obligations of the state budget, overspending and debts of local governments. Strictly control the grant of Government guarantees for loans within the permissible limits.

Allow for socio-economic efficiency and debt repayment ability when mobilizing and using ODA loans and preferential loans from foreign donors. New ODA and preferential loans from foreign donors shall be used solely as capital investment expenditure, not as recurrent expenditure. Focus on a few key areas to ensure maximum economic efficiency, prioritize investment in projects that directly promote growth and sustainable development, have spillover effects, help respond to climate change, improve the quality of the environment, education, health and technology.

6. Deploy the instruments for management of the Government’s debt prescribed in regulations in conformity with practical requirements, state budget management, state treasury management, and ensure efficiency, safety and liquidity of the state budget. Depending on market conditions, carry out the debt restructuring with appropriate costs; reform the methods and instruments for the management and statistics of the national external debts in accordance with the requirements of economic development and international practices; separate the public-sector foreign loans (i.e. government loans, government-guaranteed loans) and self-arranged loans of enterprises and credit institutions.

7. Continue to reorganize state-owned enterprises with the intention of focusing on retaining key and essential sectors; key national defense and security zones; sectors in which enterprises of other economic sectors do not invest. Consolidate and develop a number of large-scale, efficient state-owned economic groups having regional and international competitiveness in a number of key industries and sectors in the economy. Ensuring public availability and transparency in the process of equitization and divestment of state capital in state-owned enterprises. Proceeds from equitization and divestment of state capital that are paid into the state budget shall only be used for investment in national and local key and important infrastructure and replenishment of the charter capital of a number of key state-owned enterprises in which the state investment capital participation are needed in accordance with regulations.

8. Strengthen the review and completion of the synchronous financial autonomy mechanism for public service delivery units on the basis of correctly and fully calculating public administrative service prices according to the roadmap, ensuring public disclosure, transparent; issue economic - technical norms as a basis for determining public service prices. Review, amend and supplement mechanisms and policies to attract off-state budget resources to participate in provision of public services and utilities, and protect the interests of public service users. As early as possible complete documents guiding the provision of public non-business services on the list of public non-business services funded by the state budget by commissioning or tendering; review, evaluate and continue to improve the mechanism to enable the equitization of qualified public non-business units, and succeed in handling social issues.

By 2025, on average, reduce the number of public non-business units nationwide by 10%, and public personnel receiving salaries from the state budget by 10% as against the rate in 2021; reduce direct expenditure from the state budget for public non-business units by 10% on average as against the rate in the 2016-2020 period.

9. Perfect institutions for management and use of specialized public property in accordance with the Law on Management and Use of Public Property; speed up the approval process and organize the implementation of the plan to rearrange and disposal of public property, including house and land; promote decentralization, delegation of authority over management and use of public property for joint venture and affiliation purposes, associated with ensuring accountability, public disclosure, transparency and strengthening supervision, ensuring rules and discipline as well as using such public property effectively and in compliance with law.

10. Strengthen the management of finance, state budget and public debt according to the medium-term plan, ensure the consistency and coherence between the financial plan and the public investment plan, the plan for borrowing and repayment of public debt. Regularly assess the impacts of borrowing on outstanding public debt, government debt and debt repayment obligations. Relate the rate of state budget deficit with the rate of direct debt repayment from the state budget during the process of annual state budget management. Avoid issuing new policies, facilities, programs and projects when failing to balance the state budget. In case public debt targets reach the warning thresholds, the Government shall report to the National Assembly on this situation and recommend special control measures for public debt management.

Tighten rules and discipline for financial – state budget affairs, public debt, public asset management, strengthen supervision, inspection, examination and audit; ensure that audit results of the State Audit are used as a basis for approval of final accounts of the state budget and approval of final accounts of the local budgets of provinces or cities. Strengthen combat against corruption and extravagance during the process of management and use of public finance and public property, and heighten the personal responsibility of the heads; commend and reward organizations and individuals with outstanding achievements and performance; strictly sanction organizations and individuals that commit violations in accordance with law.

Article 5. Implementation

1. The Government, Ministries, central and local authorities at all levels shall, depending on their assigned functions and duties, take charge of effectively implementing this Resolution. 

2. The National Assembly’s Standing Committee, the Finance and Budget Committee, the Committee for Ethnic Affairs and other National Assembly’s Committees, National Assembly’s Delegations, the National Assembly’s deputies, Vietnamese Fatherland Front and its affiliates, and the State Audit, shall, within their remit and jurisdiction, oversee and audit the implementation of this Resolution.  

This Resolution is passed in the 1st Congress of the XVth National Assembly of the Socialist Republic of Vietnam on July 28, 2021.

 

 

CHAIRMAN




Vuong Dinh Hue

 

Đã xem:

Đánh giá:  
 

Thuộc tính Văn bản pháp luật 23/2021/QH15

Loại văn bảnNghị quyết
Số hiệu23/2021/QH15
Cơ quan ban hành
Người ký
Ngày ban hành28/07/2021
Ngày hiệu lực11/09/2021
Ngày công báo...
Số công báo
Lĩnh vựcTài chính nhà nước
Tình trạng hiệu lựcCòn hiệu lực
Cập nhật3 năm trước
Yêu cầu cập nhật văn bản này

Download Văn bản pháp luật 23/2021/QH15

Lược đồ Resolution 23/2021/QH15 regarding national financial borrowing and public debt repayment plan


Văn bản bị sửa đổi, bổ sung

    Văn bản liên quan ngôn ngữ

      Văn bản sửa đổi, bổ sung

        Văn bản bị đính chính

          Văn bản được hướng dẫn

            Văn bản đính chính

              Văn bản bị thay thế

                Văn bản hiện thời

                Resolution 23/2021/QH15 regarding national financial borrowing and public debt repayment plan
                Loại văn bảnNghị quyết
                Số hiệu23/2021/QH15
                Cơ quan ban hànhQuốc hội
                Người kýVương Đình Huệ
                Ngày ban hành28/07/2021
                Ngày hiệu lực11/09/2021
                Ngày công báo...
                Số công báo
                Lĩnh vựcTài chính nhà nước
                Tình trạng hiệu lựcCòn hiệu lực
                Cập nhật3 năm trước

                Văn bản thay thế

                  Văn bản được dẫn chiếu

                    Văn bản hướng dẫn

                      Văn bản được hợp nhất

                        Văn bản được căn cứ

                          Văn bản hợp nhất

                            Văn bản gốc Resolution 23/2021/QH15 regarding national financial borrowing and public debt repayment plan

                            Lịch sử hiệu lực Resolution 23/2021/QH15 regarding national financial borrowing and public debt repayment plan

                            • 28/07/2021

                              Văn bản được ban hành

                              Trạng thái: Chưa có hiệu lực

                            • 11/09/2021

                              Văn bản có hiệu lực

                              Trạng thái: Có hiệu lực