Hanoi (VNA) - The operation of some off-budget State financialfunds have overlapped with the State Budget or with each other in terms ofpurpose and tasks, experts have warned.

The statement was made at a meeting held between the NationalAssembly (NA)’s supervising team and the Government on the implementation of alegal framework relating to the management and use of off-budget financialfunds in 2013-2018 period held in Hanoi on August 5.

According to the supervising team’s report, there were 28 funds managedby the central government and more than 40 funds controlled by localities during2013-2018. The centrally-run funds are projected to raise 502.2 trillion VND intotal in 2019, with 100.8 trillion VND to come from the State budget. The totaloutstanding balance of those funds by the end of 2019 is estimated at over907.2 trillion VND.

Meanwhile, reports from 41 localities showed that total outstandingbalance of locally-run funds rose through the years from 2013 to 2018, reachingalmost 17.2 trillion VND in 2018. The five largest funds of this type were theland development fund, the development investment fund, the environmentalprotection fund, the housing development fund, and the forest protection anddevelopment fund.

At the meeting, participants agreed that the financial funds have madeimportant contributions to fulfilling a number of social-economic anddevelopment objectives in the context of the State budget unable to meet theneed annually.

However, the funds have also revealed problems and shortcomings in theiroperation such as the mobilisation of some funds was still limited and most ofthe resources of the funds originated from the State. The management of revenueand expenditure was inadequate.

Vice chairman of the NA’s Finance and Budget Committee Nguyen Huu Quang saidthe Government should restructure the funds and stop the operation of those withineffective operation or no longer suitable with the current socio-economicsituation.

Vice chairman of the NA’s Ethnic Council Nguyen Lam Thanh urged the supervisingteam to clarify the legal gap regarding the formation and management ofoff-budget State financial funds and point out shortcomings in ministries, agenciesand localities’ management of the funds.

He said the Government should quickly review and amend legal documents andregulations related to those funds, and recommended the early promulgation of alaw on the management and use of off-budget funds.  

To promote efficiency of the funds’ activities, participants said theGovernment should enhance the management, inspection and supervision of theoperation of State financial funds along with improving the capacity of fundofficials towards open and transparent management and use of this source of funding.-VNA