HCM CITY — The Finance Department of HCM City has submitted a plan to create a land development fund that would provide money for land clearance and resettlement costs.
Money for the fund would be raised from four sources: the state budget, land-use rights, land rentals, revenue from public auctions organised annually for land-use rights; city government advances for compensation for land clearance and resettlement; and aid and entrusted capital from organisations and individuals.
The main objective of the land development fund is to prepare corresponding capital sources for the existing land-fund development centre to distribute money for land clearance and resettlement.
This would contribute to compensation and resettlement for people whose land had been purchased for public works or new building projects.
Other organisations would also be allowed to advance capital from this fund to create land funds or build or buy houses for resettlement activities.
The land development fund would also be used to help people who have been allocated housing for resettlement but have not received sufficient compensation to buy a house or apartment in the resettlement area.
According to the city's Finance Department, the land development fund would encourage the city to take the initiative in using money from the state budget.
In other words, state budget expenditures and revenue could be used at times when local governments have to temporarily supply capital for urgent projects that remain without investment capital. — VNS