Proposal to grant more authority to the Ministry of Finance in public debt management

The Ministry of Finance has proposed amending and supplementing a number of regulations to implement decentralization and delegation of authority over the process of approving borrowing and debt repayment plans. Illustration photo: Tue Van

The latest draft of the Law on Public Debt Management supplements and amends regulations to implement decentralization and delegation of authority over the approval process of borrowing and debt repayment plans; foreign borrowing and debt repayment activities of the Government , and borrowing by local authorities to ensure consistency with the State Budget Law and the amended Law on Public Investment.

At the same time, the draft Law adjusts regulations on mobilizing and using foreign loans of the Government to speed up the implementation of projects using foreign loans, expand incentives and conditions for accessing foreign loans.

Notably, the draft Law grants additional authority to the Prime Minister and the Ministry of Finance in public debt management; adds provisions on the authority of the President and the Government in negotiating, signing, and amending international treaties on ODA loans and preferential loans. The Ministry of Finance is assigned to proactively negotiate loan agreements, and the Prime Minister decides on amendments and supplements that increase the Government's foreign debt repayment obligations.

The draft law also cuts many procedures such as approving loan limits, appraising re-lending to localities; adding a mechanism for managing ODA loans, issuing international bonds, and providing for income tax exemption for interest on international government bonds and loans from foreign lenders.

According to Deputy Minister of Justice Nguyen Thanh Tu, amending and supplementing the Law on Public Debt Management is necessary, focusing on urgent issues that greatly affect socio-economic development, especially growth and macroeconomic stability.

During the appraisal process, the Ministry of Justice requested that a number of issues related to decentralization and delegation of power between the President and the Government must be consistent with the Constitution, while also ensuring consistency and synchronization with other laws, such as the Law on Credit Institutions, the State Budget Law, the Tax Law, etc., and synchronization with international commitments that Vietnam has signed.

In addition, if the amendment or supplement is related to decentralization and delegation of power between the President and the Government, it is necessary to clearly explain this issue to ensure compliance with the Constitution.

Source: https://hanoimoi.vn/de-xuat-trao-them-tham-quyen-cho-bo-tai-chinh-trong-quan-ly-no-cong-714243.html