In a recent dispatch on the organization and management of the state budget and central budget in the first quarter of 2024, the Ministry of Finance requested the State Treasury to coordinate with units within the Ministry to strictly control expenditures in accordance with policies and regimes.
Regarding capital mobilization for the central budget, the Ministry of Finance requested the State Treasury to preside over and coordinate with the Finance Department of banks and financial institutions to organize the issuance of government bonds in the market for domestic borrowing needs of about VND 127,000 billion (including mobilization from Vietnam Social Security) in the first quarter of 2024.
Business activities of the State Treasury (Photo: Government Newspaper).
In the coming time, the State Treasury said it will closely follow the assigned capital mobilization plan, proactively develop an issuance schedule, grasp the revenue and expenditure situation, the principal repayment plan of the central budget and market developments to promptly advise the Ministry of Finance on solutions to mobilize government bond capital with appropriate volume, maturity, and issuance interest rates, ensuring sufficient mobilization of volume according to the needs of the central budget and maintaining stable operations of the government bond market.
At the same time, capital mobilization will continue to focus on long-term terms of 5 years or more, meeting the target of an average government bond issuance term of 9-11 years in accordance with Resolution No. 23/2021/QH15 of the National Assembly .
In 2023, the State Treasury successfully mobilized VND 298,476 billion in government bonds, reaching 98% of the adjusted plan assigned by the Ministry of Finance to the State Treasury (VND 305,000 billion). The volume of government bonds issued is linked to the need for development investment spending and principal repayment of the central budget, ensuring savings and efficiency.
All government bonds are issued at the Hanoi Stock Exchange. The issuance terms are diversified, focusing on 5 years or more to continue restructuring the government bond portfolio towards extending the term, reducing short-term debt repayment pressure and borrowing costs, contributing to restructuring public debt safely and sustainably according to the Party and National Assembly's policies in Resolution No. 07-NQ/TW dated November 18, 2016 on policies and solutions to restructure the state budget and manage public debt to ensure a safe and sustainable national finance and Resolution No. 23/2021/QH15 dated July 28, 2021 on the national financial plan and borrowing and repaying public debt for the 5-year period 2021 - 2025.
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