The Ministry of Finance proposes to extend the limit for depositing funds at banks until February 28, 2026

Implementing the provisions of Decree No. 24/2016/ND-CP dated April 5, 2016 of the Government on the state budget management regime (amended and supplemented in Decree No. 14/2025/ND-CP), the Ministry of Finance has organized the professional management of the temporary use of the state budget (NQNN) in accordance with regulations, ensuring liquidity safety and improving the efficiency of budget resource use.

In recent times, in order to achieve the high economic development target for 2025 and the following years, the disbursement of public investment capital has been directed by the Government to be promoted. However, there is still a certain amount of funding, mainly local budgets, that has been allocated for spending but has not been disbursed, including salary reform, increased revenue - expenditure savings, and basic construction investment capital.

The State Treasury has sent out temporary NQNN at commercial banks at a maximum of 50% of the usable capacity according to current regulations. However, at some times, liquidity in the currency market is difficult, the interbank interest rate level increases, at some times the interest rate for short terms under 01 month remains at 6.57.5%/year, limiting the ability of credit institutions to invest in government bonds.

Meanwhile, the temporarily idle NQNN source is actually a "not yet disbursed" source but has a specific expenditure task. The Ministry of Finance and the State Treasury must always ensure readiness and timeliness to fully meet all budget expenditure requirements according to the decisions of competent authorities and the requirements of investors and budget units.

Adjusting limits to support market stability

Implementing the conclusion of the Government Standing Committee, in order to ensure safe management of NQNN, fully meet the needs of state budget expenditures, and at the same time support the State Bank in stabilizing liquidity in the monetary market during the peak period at the end of the year, adjusting the limit for the use of NQNN that is temporarily idle to deposit at commercial banks for a term at the end of 2025 and the Lunar New Year 2026 is determined to be necessary and urgent.

On that basis, based on the provisions of the Law on Promulgation of Legal Documents, the Ministry of Finance has drafted a Government Resolution on adjusting the limit for temporary idle and idle deposits with terms at commercial banks, in order to create a legal basis for timely increase in deposit balances, supporting stable liquidity in the currency market in the context of increasing payment needs of the economy at the end of the year and Lunar New Year.

This adjustment also aims to improve the coordination between fiscal policy and monetary policy, ensuring the implementation of growth promotion goals associated with maintaining macroeconomic stability according to the Resolutions of the National Assembly on the Socio-Economic Development Plan for 2025, 2026 and Conclusion No. 123-KL/TW dated January 24, 2025 of the Central Executive Committee, with a growth target of 8% or more in 2025.

Increasing the ceiling for temporary idle deposits to 60%

The draft Resolution consists of 03 articles. Regarding the adjustment of the limit for the use of temporarily idle NQNN deposits with terms at commercial banks, the draft stipulates the adjustment of the limit from a maximum of 50% to a maximum of 60% according to Point d, Clause 3, Article 9 of Decree No. 24/2016/ND-CP, which has been amended and supplemented in Decree No. 14/2025/ND-CP.

The application period is from the effective date of the Resolution to February 28, 2026. After this time, NQNN deposits with a term at commercial banks are allowed to remain valid until maturity, but must ensure that the deposit balance by March 31, 2026 does not exceed the limit according to current regulations.

The adjustment of the limit during this period may increase the pressure on the Ministry of Finance in ensuring timely and complete response to budget expenditure needs, especially social security expenditures and disbursement of capital for basic construction investment. However, this solution is expected to support the State Bank in stabilizing liquidity in the commercial banking system, thereby reducing pressure on market interest rates, contributing to stabilizing the macro economy and supporting growth targets.

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