Overview of the discussion session on the morning of November 7, 2024 on the project "1 law amending 7 laws". Photo: National Assembly

During the 8th session on November 7, 2024, the National Assembly discussed the draft law that seeks to amend several financial and budget-related laws, including the Securities Law, Accounting Law, Independent Auditing Law, State Budget Law, Law on Management and Use of Public Assets, Tax Administration Law, and National Reserve Law.

Clarifying regulations to preserve budget structure

Numerous National Assembly deputies expressed support for amending and supplementing seven financial and budget-related laws.

These adjustments aim to swiftly institutionalize the Party and State's policies on finance and budgeting, resolve difficulties, facilitate economic integration, and harmonize the legal framework with newly effective laws.

Regarding the State Budget Law amendments, Deputy Tran Khanh Thu from Thai Binh proposed new provisions to allow budget expenditures, covering both public investment and recurrent expenditures, for project preparation and approval-related expenses.

This provision, she noted, would ease the operational challenges for public administrative units.

However, Delegate Thu suggested that the draft law should specify conditions for using recurrent funds for investment-related tasks, with a cap on maximum funding levels, to ensure these expenditures do not significantly impact the overall budget structure.

Similarly, Deputy Bui Thi Quynh Tho from Ha Tinh emphasized the need for principles to determine recurring expenses, which should only apply to urgent, critical needs with clearly defined criteria.

Avoiding dispersed investment and protecting fiscal policy

Responding to concerns raised by deputies, Deputy Prime Minister Ho Duc Phoc explained that the current SBL revisions in the "One Law Amending Seven Laws" project are designed to address immediate obstacles.

A more comprehensive amendment in the next legislative session will further enhance budget decentralization, with a stronger role for the central budget and increased autonomy for local budgets.

Deputy Prime Minister and Minister of Finance Ho Duc Phoc gave an explanation speech. Photo: National Assembly

Addressing concerns about possible conflicts between the State Budget Law and the Public Investment Law, Phoc assured that the government, along with the Ministry of Finance and the Ministry of Planning and Investment, has carefully coordinated to ensure that revisions in both laws are aligned.

To prevent dispersed investment that could undermine fiscal policy, Phoc highlighted the importance of the Public Investment Law in setting procedures and regulations for public investment plans.

The amended law stipulates that medium-term public investment plans are designed to ensure fiscal balance over a five-year period.

“This means that projects proceed only when funds are available, to enhance investment efficiency and avoid accumulating debt,” he said.

Deputy Prime Minister Phoc noted that unforeseen, essential projects that arise mid-year can still receive funding from contingency budgets or savings. He cited the example of Phong Chau Bridge, which collapsed and required immediate attention, but could not be funded under the current medium-term plan. Instead, budget reserves were used to expedite repairs, ensuring public safety and continuity of services.

“These provisions reflect practical needs, balancing fiscal policy management with effective use of state budget resources,” Phoc emphasized.

The draft law also specifies decision-making authority over contingency funds, budget savings, and excess revenue, promoting transparency, accountability, and effective management.

National Assembly deputies attending the meeting. Photo: National Assembly

Regarding National Assembly-approved estimates, some deputies argued that the government should not administer this estimate. Deputy Prime Minister Ho Duc Phoc, however, pointed out that the Prime Minister has previously addressed this issue.

“For example, a VND 19 billion project or a VND 21 billion foreign aid project still requires National Assembly approval, even when the total budget remains unchanged, resulting in time-consuming processes that impact operational efficiency,” he explained.

Therefore, Deputy Prime Minister Ho Duc Phoc proposed that once the National Assembly approves the overall estimate, the government should handle allocation decisions within approved unit prices and cost norms, ensuring accountability and smooth administration.