Vietnam: Hanoi's outstanding balance of borrowed funds must not exceed 70% of local budget revenues

07:59, 11/07/2024

This is the content mentioned in Decree 63/2017/ND-CP regulating the special financial budget mechanisms and policies of Hanoi.

It supplements additional mechanisms and policies on the budget deficit for Hanoi Capital that the current regulations do not address. To be specific::

- The city's budget is allowed to be in deficit and can only be used for investment in construction projects in the medium-term public investment plan decided by the City People’s Council;

- The annual budget deficit limit of the city's budget will be determined by the National Assembly.

The specific budget deficit amount of the city's budget is decided by the City People’s Council and shall not exceed the budget deficit limit set by the National Assembly of Vietnam.

Moreover, the city's budget deficit can be covered by domestic borrowing sources through the issuance of local government bonds, loans from the Government of Vietnam to the city, and other domestic loans.

The outstanding balance of the above borrowed funds of the city's budget shall not exceed 70% of the local budget revenue according to the decentralization.

Decree 63/2017/ND-CP takes effect from July 05, 2017.

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