Many lawmakers on June 9 agreed that a resolution piloting some special financial and budget mechanisms and policies should be promulgated for Hanoi to enable its stronger development, while discussing in groups at the ongoing ninth session of the 14th National Assembly.

A corner of Hanoi (Photo: VNA)

However, in the context of socio-economic difficulties caused by COVID-19, legislators held that the mechanisms should be built in accordance with the country’s general development trends as well as the State budget balance.

According to the Government draft contents of the resolution, the ceiling of debts would be increased from 70% to 90% in the principle that the capital city must ensure its solvency.

The city would be allowed to use the financial reserve fund to invest in infrastructure. It must ensure the recovery of the money within 36 months.

It would also be allowed to use the remainder of the salary reform source to spend on development investment projects and implement social security systems and policies.

The city could use regular funding of several units for investment purposes in small-scale and capital construction projects.

Regarding the authority to decide on the supplementation and increase on charges and fees, the Committee for Finance and Budget agreed with the Government’s proposal on allowing the city to increase charge rates but not exceeding 1.5 times compared to current levels for all types of charges.

The specific increase on charges and fees would be decided by the city People's Council based on the practical demand and consent of the people.