VietNamNet Bridge – The Government, speaking at a National Assembly (NA) Standing Committee meeting in Hanoi last week, proposed granting a special status for Da Nang City so that it can have more cash for development.

Illustrative image -- File photo

The proposed special treatment is related to budget allocations. The law on state budget allows for bonus budget allocations for cities and provinces with their budget collections higher than targeted. The law permits Hanoi and HCMC to receive extra cash after they get bonuses from the central budget for their surplus revenues with a ratio of 100% for Hanoi and 70% for HCMC.

The proposal aims to seek more funding for Danang from next year when the amended law on state budget goes into force.

The Government also wants Danang to be permitted to increase borrowing out of total debt for basic construction projects from 30% to 100% as Danang wants to have more finances to fuel its growth via issuing municipal bonds and mobilize capital from different sources.

HCMC and Hanoi currently enjoy a special ratio of 150% for capital mobilization from domestic sources.

SGT