Decree No. 103/2018/ND-CP provides special mechanisms for investment, finance, budget, and decentralization management for the city of Can Tho.

DECREE

Regulations on certain special mechanisms regarding investment, finance, budget, and decentralization management for the city of Can Tho

and the management levels for Cần Thơ City 

Pursuant to the Law on Government Organization dated June 19, 2015;

On the basis of the Ordinance on Implementation of Democracy in Communes, Wards, and Towns dated April 20, 2007;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Public Debt Management Law dated November 23, 2017;

Pursuant to the Construction Law dated June 18, 2014;

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Urban Planning Law dated June 29, 2009;

Pursuant to the Law on Public Investment dated June 18, 2014;

At the proposal of the Minister of Finance;

The Government issues this Decree stipulating certain special mechanisms regarding investment, finance, budget, and decentralization management for the city of Can Tho.

Article 1. Scope of Regulation and Applicability

1. This Decree stipulates certain special mechanisms regarding investment, finance, budget, and decentralization management for the city of Can Tho (hereinafter referred to as the city).

2. This Decree applies to:

a) State agencies, political organizations, political-social organizations, political-social-professional organizations, social organizations, social-professional organizations, public service units using the city's budget;

b) Other agencies, units, organizations, and individuals related to the implementation of special mechanisms regarding investment, finance, budget, and decentralization management for the city.

Article 2. Principles for building special mechanisms

1. These special mechanisms aim to promote rapid and sustainable economic and social development of the city; create conditions for the city to leverage its advantages to become one of the major cities in the country, a significant economic and social center with the role of an industrial, commercial, and service center of the Mekong Delta region by 2020; provide a strong impetus to promote the development of provinces in the Mekong Delta region.

2. Decentralization management must be linked to enhancing the responsibility of the People's Council and People's Committee of the city; at the same time, it must encourage initiative, creativity, and effective exploitation of the city's potential and strengths in achieving local economic and social development goals.

Article 3. Mobilizing investment capital and financial support from the central budget

1. The city is allowed to borrow domestic investment capital through various forms of mobilization as prescribed by law; borrow again from the central government's foreign borrowing for local budgets to borrow again. The level of debt (including borrowed funds from the central government's foreign borrowing for re-lending and other domestic loans as prescribed by law) of the city's budget shall not exceed 40% of the local budget revenue received according to the allocation and remain within the annual fiscal deficit level of the state budget decided by the National Assembly.

2. The Government prioritizes providing a portion of central budget capital to the city's budget to participate in implementing inter-regional projects within the city's territory under the Public-Private Partnership (PPP) model.

3. The Government prioritizes allocating sufficient targeted supplementary capital to the city's budget to implement economic and social development projects of the city and regional-level projects of the Mekong Delta region.

4. The city uses investment capital raised, central budget support capital, Official Development Assistance (ODA) capital, and concessional capital from donors as prescribed in Clause 1, Clause 2 of this Article, Article 4, and Clause 1 of Article 5 of this Decree to prioritize investment in projects and works attached as an appendix to this Decree.

Article 4. Mobilizing Official Development Assistance (ODA) capital and concessional capital from foreign donors

1. The Government prioritizes supporting ODA capital for the city to implement important infrastructure investment projects under the expenditure responsibilities of the city's budget managed by the People's Committee of the city. The provision of counterpart funding domestically for these projects shall be guaranteed by the city's budget.

2. The Government prioritizes allocating concessional loan capital through the mechanism of lending to localities to implement PPP projects within the city's territory.

3. The People's Committee of the city is authorized to approve project lists and decide to accept non-repayable aid (ODA, non-governmental foreign aid) for programs and projects regardless of the size of the aid, except for technical assistance aid related to institutions, religion, laws and policies, administrative reform, national defense, and security, which are decided by the Prime Minister. The Chairman of the People's Committee of the city is responsible for receiving, managing, and effectively utilizing these aids, implementing accounting and settlement procedures in accordance with the law; annually reporting to the Ministry of Finance and the Ministry of Planning and Investment for monitoring, supervision, and compiling reports to the Prime Minister.

Article 5. Special Features Regarding the Budget

1. Annually, the central budget supplements with targeted purposes for the city shall not exceed 70% of the increase in the central budget revenue from the shared revenue between the central budget and the city budget compared to the Prime Minister's forecast (the remaining portion after implementing the excess revenue bonus according to the State Budget Law) and the central budget revenues specified at Points b, c, d, g, h, i, q Clause 1, Article 35 of the State Budget Law that have increased compared to the Prime Minister's forecast (excluding revenue items: Not assigned to the city for collection, not generated within the city but only recorded and paid in the city; revenues already permitted by competent authorities for use; revenues recorded as income and expenditure and revenues retained by spending units under state budget management according to the law); the amount of targeted supplement shall not be higher than the increase in the central budget revenue on the territory compared to the previous year's revenue collection.

The determination of the amount of targeted supplement is based on the total of all revenues, without calculating each revenue item separately.

Based on the total excess revenue of the central budget and overall balance, the Government reports to the Standing Committee of the National Assembly for consideration and decision on the level of targeted supplement for the city as stipulated in the State Budget Law and the special mechanism for the city provided in this Article.

2. The amount of targeted supplement from the increased revenue as prescribed in Clause 1 of this Article, the city shall use: Prioritize paying off overdue construction debts; investing in infrastructure projects; investing in the city's high-tech zone; allocating matching funds for ODA projects; repaying loan principal; implementing important tasks to develop the economy and society, ensure national defense, security, public order, and social safety of the city, and rewarding lower-level budgets. The People's Committee of the city shall report to the Municipal People's Council for decision on specific funding amounts for each target and task and rewarding lower-level budgets.

3. In the first year of the new budget period, the Government assigns the Ministry of Finance to take the lead in coordinating with relevant ministries and sectors to propose to the competent authority for consideration and decision on the proportion of revenue sharing for the city's budget to ensure resources for the city's economic and social development goals and regional projects in the Mekong Delta.

Article 6. On Interest Subsidy Support

The city may implement a mechanism to subsidize part of the interest rate for organizations and individuals when borrowing funds to invest in important economic and social development projects capable of recovering capital within the scope and capacity of the city's budget.

Article 7. On Social Housing Sales

The city may sell social housing invested with state budget funds that have been completed and put into operation through a one-time payment method to reinvest in building other social housing on the territory. The People's Committee of the city shall draft a proposal to report to the Ministry of Construction for approval in writing before implementation.

Article 8. On Financial Reserve Fund

1. Sources for establishing the financial reserve fund, contribution rates, and balances of the fund shall be implemented according to the provisions of the State Budget Law and Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain articles of the State Budget Law.

2. The People's Committee of the city is authorized to temporarily borrow from the city's financial reserve fund to invest in important infrastructure projects that are urgent and prioritized for serving disaster prevention and control, climate change response within the city's budget expenditure tasks, but not yet allocated or insufficiently allocated in the medium-term investment plan. The borrowing period shall not exceed 36 months from the date of borrowing. The maximum amount of the city's financial reserve fund usage in a year (including borrowed amounts and expenditures for other tasks as prescribed) shall not exceed 70% of the beginning-of-year balance of the fund.

Article 9. Regarding the authority to approve investment for new urban area projects

The Government authorizes the People's Committee of Can Tho City to decide on approving investment for new urban area construction projects with a scale from 100 hectares to less than 200 hectares in accordance with the Master Plan for Construction and land use planning and plans. The People's Committee of the city must reach consensus with the Ministry of Construction before approving the decision to approve investment.

Article 10. Effective Date

1. This Decree takes effect from October 10, 2018.

2. Repeal Decision No. 42/2006/QĐ-TTg dated February 16, 2006 of the Prime Minister on certain preferential financial and budget mechanisms for the city.

Article 11. Implementation Organization

1. Other contents regarding investment, finance, budget, and decentralization management not specified in this Decree shall be implemented according to current regulations.

2. Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of People's Councils, and Chairpersons of People's Committees of cities directly under the central government are responsible for implementing this Decree./.