Decision No. 54/2004/QĐ-TTg On certain financial and budgetary preferential mechanisms for the city of Hai Phong

Pursuant to …;

On Certain Financial Mechanisms for Preferential Treatment of Haiphong City

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;
Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget.
At the proposal of the Minister of Finance,

Pursuant to …;

Article 1. Enacting certain preferential financial mechanisms for Haiphong City as follows::

1. Regarding budget mechanism:

a) Annually, based on the total approved state budget estimate, the progress of project implementation, the city's budget allocation capacity, and the central government's budget balance capability, the Ministry of Planning and Investment and the Ministry of Finance shall report to the Government to submit to the National Assembly for a decision to supplement the Haiphong City budget from the central state budget with targeted funding from now until 2010 to support the implementation of important projects that are significant to Haiphong City and the northern key economic region, specifically as follows:

- Supporting the construction of the Cat Bi Airport intersection road and Road 353.

- Supporting the establishment of the University of Haiphong under a multi-disciplinary university model; supporting the construction of the Vietnam-Sweden multi-specialty regional hospital with high-quality services for the entire northern coastal region. - Infrastructure investment projects in socio-economic development areas such as Do Son town; two island districts (Bach Long Vi and Cat Hai); new urban area infrastructure north of the Cam River; tourism infrastructure development.

b) Annually, in cases where there is an increase in central state budget revenue compared to the allocated estimate from shared revenue sources between the central state budget and the city budget as stipulated by the Law on State Budget, the Haiphong City budget will be rewarded with 30% of this revenue increase, but not exceeding the revenue increase compared to the previous year's actual performance.

c) For annual increases in central state budget revenue compared to estimates, the Ministry of Finance and the Ministry of Planning and Investment shall report to the Government to submit to the Standing Committee of the National Assembly for priority targeted support for the Haiphong City budget according to the provisions of the Law on State Budget.

The surplus budget rewards and annual targeted support amounts specified above shall be used for investing in infrastructure projects, allocating matching funds for ODA projects, repaying loans taken by the city budget, implementing important tasks to develop the economy and society, ensuring security, public order, and social safety in Haiphong City, and rewarding lower-level budgets. The People's Committee of Haiphong City shall report to the same-level People's Council to decide specific capital amounts for each target and task and reward lower-level budgets.

d) Regarding the mobilization and effective use of land use fee revenues for socio-economic development within Haiphong City: Based on approved planning, Haiphong City may apply city budget funds and other mobilized sources according to regulations to invest in state-funded economic and technical infrastructure, relocate production and business facilities from the city center to suburban areas and industrial zones to create land reserves, and then implement land and public asset auctions according to regulations to generate development funds and repay previously advanced city budget funds and other mobilized sources.

2. Regarding the mobilization of financial resources for development investment:

a) Haiphong City may implement a mechanism to partially subsidize interest rates for organizations and individuals when borrowing for investment in sectors with potential for capital recovery (tourism infrastructure investment, transportation route investments, urban environmental service activities, medical treatment activities, etc.) within the scope and capacity of the city budget and in accordance with the law.

b) Prioritize allocating official development assistance (ODA) funds to Haiphong City for projects without capital recovery potential, to invest in important infrastructure projects under the city budget's investment responsibilities. The city budget must ensure domestic matching funds for these projects.

c) For foreign borrowing needs to implement important projects, it shall be carried out according to the principle: Based on projects approved by the People's Council of the city and the formal opinions of the Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam, the People's Committee of Haiphong City shall submit to the Prime Minister for consideration and decision to borrow centrally and lend back to the city to implement projects and works as proposed by the People's Committee of the city. Haiphong City is responsible for allocating from the city budget to repay according to regulations.

The Ministry of Finance shall take the lead in coordinating with relevant agencies to organize the implementation and provide detailed guidance on the contents stipulated in this Decision, ensuring compliance with current laws. In addition to the provisions of this Decision, other aspects of financial and state budget systems for Haiphong City shall continue to be implemented according to the current Law on State Budget and Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget.

Article 2. The Minister of Finance, the Minister of Planning and Investment, the Governor of the State Bank of Vietnam, the Chairman of the People's Committee of Haiphong City, and the heads of relevant agencies are responsible for enforcing this Decision.

Besides the provisions of this Decision, other contents regarding the financial system and state budget for the city of Hai Phong shall still be implemented in accordance with the current State Budget Law and Government Decree No. 60/2003/NĐ-CP dated June 6, 2003 detailing and guiding the implementation of the State Budget Law.

Article 3. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 4. The Minister of Finance, the Minister of Planning and Investment, the Governor of the State Bank of Vietnam, the Chairman of the People's Committee of Hai Phong City, and the heads of relevant agencies are responsible for implementing this Decision.