August 18, 2019 16:59

Advertisement Contact us RSS Vietnamese

‘Aggressively’ promoting public investment disbursement

13:33 | 14/08/2019

VCN - The rate of public investment disbursement has been slower than the plan, but now it is slower than the general progress of previous years, and some units have not yet assigned their capital plan. The Ministry of Finance has proposed to the Government more "aggressive" measures to address this situation.

aggressively promoting public investment disbursement More aggressive in directing public investment disbursement
aggressively promoting public investment disbursement Ministry asked to speed up public investment disbursement
aggressively promoting public investment disbursement Discussions on the Public Investment Law (revised)
aggressively promoting public investment disbursement
Cut down on capital of projects that cannot afford to disburse. Photo: ST

Disbursement rate still below 20%

Most ministries, branches and localities have not strictly implemented the reporting regime. In 2019, the four-month disbursement report was sent by only 5 of 54 ministries and 4 of 63 localities. The six-month disbursement report was sent by only 8 of 54 ministries and 10 of 63 localities. As of July 25, the Ministry of Finance received the seven-month disbursement report from 6 of 54 ministries, sectors and 4 of 63 localities.

In order to ensure the progress and quality of the public investment disbursement report as a basis for effective measures to accelerate the disbursement progress, the Ministry of Finance proposed the Prime Minister to have strict sanctions against ministries, branches and localities that have not strictly abided by regulations on reporting on disbursement of public investment capital plans.

According to the latest statistics of the Ministry of Finance, the public investment capital payment in the first 7 months of 2019 was estimated at over 134,494 billion VND, over 32% of the National Assembly's plan and over 35% of the plan assigned by the Prime Minister. This rate was lower than the same period in 2018, by 37% and over 38%, respectively.

Of which, the domestic capital disbursed more than 129,287 billion VND, over 35% of the National Assembly's plan and over 37.5% of the plan assigned by the Prime Minister (the Government bond capital was over 6,738 billion VND; the national target program capital was more than 4,650 billion VND). The disbursed foreign capital was more than 5,206 billion VND; reaching nearly 11% of the National Assembly’s plan and more than 14% of the plan assigned by the Prime Minister (22.63% and 24.7% in 2018, respectively).

This data showed that the disbursement progress of ministries, branches and localities was lower than that of the same period in 2018. There were five ministries and sectors and eight localities with disbursement rates of over 60%. However, there were still 35 ministries and sectors and 26 localities with disbursement rates below 40%; of which 18 ministries, branches and one locality had disbursement rates below 20%. This situation has not improved compared to the previous month.

In order to urge ministries, branches and localities to accelerate public investment disbursement, the Ministry of Finance has examined the investment capital payment management in some localities.

Recently, the Ministry of Finance has sent a document to the People's Committees of provinces and cities to request investors and relevant agencies to implement some contents on building an annual capital plan in accordance with the principle and order of priority. Localities should direct investors to promptly complete procedures for approval of cost estimates and bidding for contractor selection; pay attention to support investors to implement site clearance; regularly check the disbursement of projects; and propose to transfer capital to projects that need disbursement. In addition, local authorities should direct investors to speed up the acceptance as soon as the project has completed the volume.

Recover all unallocated capital

In particular, in the proposal to the Prime Minister, the Ministry of Finance requested ministries, branches and localities to promptly complete the detailed allocation and enter the estimate on the TABMIS system for the 2019 capital plan that was just handed over in the second phase. In addition, local ministries and sectors review detailed disbursement results of each project until the end of June 2019 to take drastic direction, cut the capital of projects that cannot afford to disburse all the capital plans, and adjust projects that can speed up the progress and have a need to supplement the capital to send to the Ministry of Planning and Investment and the Ministry of Finance to synthesize and report to the Prime Minister.

aggressively promoting public investment disbursement Five-month public capital disbursement remains sluggish

The disbursement of public investment capital totaled only VND96.9 trillion (US$4.16 billion) during the first five months ...

The Ministry of Finance urgently review 10 ministries, branches and 10 localities that have not yet submitted their capital plans in 2019. After July 28, 2019, ministries, branches and localities that have not yet proposed the plan of adjustment and allocation will be reported to the Prime Minister to cut down and recover the whole plan by the Ministry of Planning and Investment. They also must be accountable to the Prime Minister, the Government and the National Assembly.

Chairman of the NA’s Committee on Finance and Budget – Mr. Nguyen Duc Hai:

Slow disbursement will put considerable pressure in the remaining months. Therefore, the Standing Committee proposed that the Government should take aggressive measures and direct local ministries and branches to speed up the disbursement of development investment capital.

Propose the Government to clarify the responsibilities of the leader, and promptly improve the management and administration capacity, to direct the implementation, remove difficulties, accelerate the disbursement progress, and conduct the inspection and examination to ensure the effective use, limit the transfer of resources.

Economic expert Nguyen Minh Phong:

Slow disbursement has many causes, such as delayed compensation for resettlement support, delayed evaluation of construction drawing design and delayed adjustment of capital allocation.

However, there are still subjective reasons from the ministries, branches, localities, investors and project management. Disbursements are still cornered at the end of the year, making it difficult for Treasury units. Slow disbursement will slow the growth of the whole economy, so it is recommended that the Government and the Prime Minister need to take drastic direction and stronger sanctions for ministries, branches and localities so that the current paradox that having money but cannot spend it does not happen.

By Hong Van/ Ha Thanh