Chương II Nghị định 93/2018/NĐ-CP : Kế hoạch vay, trả nợ 05 năm ; chương trình quản lý nợ 03 năm và kế hoạch vay , trả nợ hằng năm của chính quyền địa phương

Chapter II

5-YEAR BORROWING AND REPAYMENT PLAN, 03-YEAR DEBT MANAGEMENT PROGRAM, AND ANNUAL BORROWING AND REPAYMENT PLAN OF A PROVINCIAL GOVERNMENT

Article 4. Provincial government’s 5-year borrowing and repayment plan

1. The 5-year borrowing and repayment plan of a provincial government is a part of its 5-year financial plan, and formulated and reported by the Provincial Finance Department to the Provincial People's Committee for submission to the Provincial People's Council for reference before it is submitted to the Ministry of Finance for consolidation.

2. Grounds for formulating a provincial government’s 5-year borrowing and repayment plan:

a) The provincial government’s implementation of the 5-year socio – economic development plan, the 5-year financial plan, the medium-term public investment plan, and the 5-year borrowing and repayment plan in the previous period;

b) Socio-economic & finance – state budget objectives, targets and orientations included in the national 5-year socio-economic development strategies and plans; strategies for finance, public debts and tax system reform; and socio-economic development objectives, targets and orientations in the 5-year planning period of the provincial government; its master plan for socio-economic development approved by a competent authority;

c) Socio-economic developments which may affect the provincial government's ability to mobilize and use finance - state budget resources in the 5-year planning period;

d) Current regulations on finance and state budget, including the mechanism for managing and assigning state budget revenue sources and spending tasks between central-government budget and provincial-government budget, and between provincial governments; orientations for revision and promulgation of the law on finance-state budget in the 5-year planning period;

dd) Directions of the Prime Minister and by the Provincial People's Committee on formulation of 5-year socio – economic development plans and 5-year financial plans.

3. Requirements on formulation of 5-year borrowing and repayment plan:

a) Being conformable with the objectives, tasks and solutions provided in the national socio-economic development strategy; strategies for finance, public debts and tax system reform; and with national and provincial socio-economic development objectives, targets and orientations in each 5-year planning period;

b) Being conformable with forecasts about the socio-economic developments, the ability to balance state budget revenue sources, raise funds and repay debts as well as the requirements on national financial safety limits in the 5-year planning period; being conformable with the principles for balancing, managing and assigning state budget revenue sources and spending tasks, principles for public debt management and the provincial government’s maximum allowable outstanding balance;

c) Prioritizing the allocation of state budget funds and borrowed funds for implementation of programs and projects in each period;

d) Ensuring publicity, transparency and effectiveness.

4. Contents of a provincial government’s 05-year borrowing and repayment plan:

a) Evaluation of the implementation of the 5-year borrowing and repayment plan in the previous period, achievements, shortcomings, limitations and reasons therefor, and drawn lessons and experiences;

b) Grounds for formulating the provincial government’s 05-year borrowing and repayment plan;

c) Indicators of the provincial government’s 05-year borrowing and repayment plan, including: debt limit, outstanding balance of the provincial government (ratio of its outstanding balance to debt limit); estimated borrowed amounts and repayment amounts;

d) Forecasts about risks which might affect the provincial-government debt management indicators;

dd) Regulatory and managerial solutions for ensuring provincial-government budget safety and sustainability.

5. The order of formulation and approval for a provincial government’s 5-year borrowing and repayment plan shall be the same as that of formulation and approval for 5-year financial plans of provincial governments set forth in Article 9 of the Government's Decree No. 45/2017/ND-CP dated April 21, 2017.

6. Adjustment of a provincial government’s 5-year borrowing and repayment plan shall follow regulations in Article 10 and Clause 5 Article 11 of the Government's Decree No. 45/2017/ND-CP.

Article 5. Provincial government’s 3-year debt management program

1. The 03-year debt management program of a provincial government is a part of its 03-year finance - state budget plan, and formulated and reported by the Provincial Finance Department to the Provincial People's Committee for submission to the standing board of the Provincial People's Council for reference before it is submitted to the Ministry of Finance for integrating it into the 3-year public debt management program which shall be then submitted to the Prime Minister for consideration.

2. Grounds for formulation of a provincial government’s 3-year debt management program:

a) The implementation of the socio-economic plan, state budget estimates, borrowing and debt repayment by the provincial government in the current year;

b) The national strategy for socio-economic development; strategies for finance, public debts and tax system reform; national and local 5-year socio-economic development plans, medium-term public investment plan (in case the three planning years are covered by a 5-year plan), or objectives, targets and orientations for socio-economic development in 5 subsequent years, and medium-term public investment of the provincial government in the subsequent period (in case the three planning years belong to two consecutive 5-year planning periods);

c) The provincial government’s planned major socio-economic targets in the three planning years; estimated budget expenditures in the fields identified in the provincial government’s 3-year finance-state budget plan made in the previous year;

d) Current regulations and orientations for revision and promulgation of the law on finance-state budget by central and provincial governments in the three planning years;

dd) The Prime Minister’s directive, guidance of the Ministry of Finance and the Ministry of Planning and Investment, and directions of the Provincial People's Committee on formulation of 3-year finance-state budget plan.

3. Requirements on a provincial government’s 3-year debt management program:

a) Being conformable with the practical implementation of 5-year and annual objectives, targets and orientations for socio-economic development and finance, and with forecasts for the three planning years;

b) Being conformable with the principles of budget balancing, management and assignment, and public debt management prescribed by the Law on the state budget and the Law on public debt management;

c) Being formulated according to the successive method for a 3-year period, in which the state budget estimate planned for the first year is used as reference for formulating, submitting and deciding annual state budget estimates, and annual borrowing and repayment estimates.

4. Contents of a provincial government’s 3-year debt management program:

a) Assessment of the performance of debt management tasks by the provincial government in the current year;

b) Grounds and requirements on formulation of the provincial government’s annual borrowing and repayment plan;

c) Planned debt limit and outstanding balance of the provincial government; planned amounts of borrowing and repayment in the planning year and specific targets for each of the two subsequent years;

d) Planned borrowing plan, estimated expenses for raising funds; debt obligations and funds for repaying debts; risks which might occur in the planning year and in the two subsequent years;

dd) Solutions for implementing the program for ensuring budget safety and sustainability of provincial government.

5. Process of formulating 3-year debt management program shall be the same as that of formulating 3-year finance-state budget plan set in Article 16 and Article 17 of the Government’s Decree No. 45/2017/ND-CP.

Article 6. Annual borrowing and repayment plan

1. The Provincial Finance Department shall annually formulate the provincial borrowing and repayment plan at the same time when the state budget estimate is formulated, and report it to the Provincial People's Committee for submission to the Provincial People's Council for reference before it is submitted to the Ministry of Finance for consolidation. If the 5-year borrowing and repayment plan of a provincial government must be submitted to the Ministry of Finance at the time different from the time of organizing the meeting of the Provincial People’s Council, the Provincial People's Committee shall report the standing board of the Provincial People’s Council for reference before it is submitted to the Ministry of Finance for consolidation, and report it to the Provincial People’s Council at the next meeting.

2. Grounds for formulation of annual borrowing and repayment plan:

a) The provincial government’s socio-economic development and national defense and security duties;

b) Assignment of budget revenue sources and spending tasks, and ratio of revenues to be distributed and additional funding for budget balancing allocated by higher-level budgets. Outstanding balance and maximum allowable debt limit and debt obligations;

c) Legislative documents promulgated by regulatory authorities providing guidance on formulation of socio-economic development plan, state budget estimates, estimates of borrowing and debt repayment in the following year;

d) The 5-year financial plan, the 3-year finance-state budget plan, the medium-term plan for public investment funded by state budget;

dd) State budget situation, borrowing and debt repayment in the previous year.

3. Requirements on formulation of annual borrowing and repayment plan:

a) Borrowed funds and amounts of debt payable must be separately specified in the plan according to forms and time limits prescribed by competent authorities;

b) The plan is made on the basis of signed loan agreements and commitments to pay debts which are mature in the budget estimating year;

c) Estimated borrowed funds for making up the provincial-government budget deficit must be conformable with its capacity of budget balancing, each lending sources, capacity of repaying debts, debt limit of each provincial government and public debt safety limits set in the resolution of the National Assembly.

4. Contents of a provincial government’s annual borrowing and repayment plan:

a) Assessment of the performance of debt management tasks by the provincial government in the current year;

b) Estimated outstanding balance and debt limit remaining in the budget year of the provincial government;

c) Planned borrowed amounts, lenders, borrowing plan and expenses thereof; borrowed amounts for making up budget deficit and repaying outstanding principal; debt repayment obligations and funds for repaying debts; forecasts about risks that might occur in the planning year;

d) Solutions for implementing the program for ensuring budget safety and sustainability of the provincial government.

5. Time limits for guidance, formulation, consolidation, decision and assignment of annual borrowing and repayment plan of a provincial government shall follow regulations in Chapter on formulation of state budget estimates of the Law on state budget and the Government’s Decree No. 163/2016/ND-CP.

6. If an annual borrowing and repayment plan includes funds from issuance of municipal bonds, the Provincial People’s Committee shall formulate a preliminary scheme for issuance of municipal bonds, and submit it to the Provincial People’s Council for approval at the same time when its annual borrowing and repayment plan and budget estimates are approved. The preliminary scheme for issuance of municipal bonds must include maximum quantity of bonds, purpose of issuance, funds for payment of bonds, and estimated date of issuance.

7. The Provincial People’s Council shall consider giving approval for the provincial government’s annual borrowing and repayment plan and budget estimates, including: Total borrowed amounts, divided into amounts for making up budget deficit and amounts for repaying outstanding principal; borrowing types, including the policy for issuance of municipal bonds as set in the bond issuance scheme formulated by the Provincial People's Committee (if any); plan for payment of principal, interest and fees in the budget year of the provincial government.

8. Adjustment of the provincial government's annual borrowing and repayment plan shall follow regulations in Article 52 and Article 53 of the Law on state budget.