December 14, 2018 22:22

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Identifying 6 causes of low local capital disbursement

19:08 | 11/07/2018

VCN- Compiling information from localities, the Ministry of Finance has "pointed out" 6 existing issues which made the disbursement in the localities slow.

nhan dien 6 nguyen nhan khien giai ngan tai dia phuong thap Half of year, some Ministries have not yet distributed the 2018 capital plan
nhan dien 6 nguyen nhan khien giai ngan tai dia phuong thap Slow disbursement of public investment will affect 2018 GDP
nhan dien 6 nguyen nhan khien giai ngan tai dia phuong thap Disbursing 100% public investment in 2018 is a challenge
nhan dien 6 nguyen nhan khien giai ngan tai dia phuong thap
Estimated payment in the first 5 months of 2018 in the locality reached 23.54% compared to the plan assigned by the National Assembly. Photo: Internet.

According to the report of the State Treasury, the disbursement situation in the first months of 2018 has not changed significantly. The rate of disbursement in 3 months in localities was only 12.85%. The estimated payment for the first 5 months of 2018 was VND 94,108.095 billion, equivalent to 23.54% of the plan assigned by the National Assembly and 24.5% of the plan assigned by the Prime Minister (equivalent to 21,35% of of the National Assembly's plan and 24.7% of the plan assigned by the Prime Minister in the same period of 2017).

To clarify the reasons for the slow disbursement of capital, the Ministry of Finance has issued Document No. 5625 / BTC-─ÉT requesting localities to report difficulties and obstacles in implementing the disbursement of public investment in 2018 for details with each project.

On the basis of the report of the localities, the Ministry of Finance has pointed out 6 issues that make disbursement of public investment in the first months of 2018 slow.

Firstly, for some new start-up projects, the time required to complete the investment procedures for projects from the time when the funds are allocated to the time prescribed in the construction contract is more than three months for preparation. Meanwhile, some new localities are implementing and upgrading the management of the project management units in accordance with Decree 59 / ND-CP of the Government on the management of construction investment projects.

Secondly, there were concerns about investment procedures, payment mechanisms for funding to people of merit for the revolution in accordance with Decision No. 22/2013 / QD-TTg dated 26 April 2013. Under this policy, the central budget was previously funded by a career fund. However, from 2017, public investment funds to support the construction of houses for people with merit must apply the management process in accordance with the Law on Public Investment. So far, the Ministry of Planning and Investment has not guided the localities in implementing the process.

Thirdly, in the course of implementation, many projects subject to adjustment of investment contents or investment scale to suit the reality must carry out appraisal and adjustment procedures according to the provisions of the Public Investment Law and the Construction Law. It can not be disbursed when the procedures have not been completed according to the above regulations.

Fourthly, the compensation price when the State recovered land is still low, not close to market prices, causing disagreements with some people, resulting in long-time clearance, slowing down the progress of the project. .

Fifthly, for projects implemented with foreign capital sources, the project process must comply with the provisions of domestic law as well as agreements concluded with foreign donors, so projects need more time for investment preparation as well as implementation.

Finally, in the management and operation, many investors have not promptly implemented disbursement procedures when the projects have finalized the volume of implementation and acceptance. In addition, many projects are allocated capital to repay advance capital or payment of construction debts, now the investors are completing procedures to file the state treasury to recover the capital. Some localities reported that they had to depend on budget collection so they did not have enough resources to disburse funds for a project. During the implementation of a project, some contractors violated the contract, therefore, it was necessary to deal with the breach, to change the contractors which affect the progress of a project.

In this situation, the Ministry of Finance issued Document No. 6132 / BTC-DT dated 25 May 2018 to report to the Prime Minister on a number of measures to accelerate disbursement. In particular, the Ministry of Finance proposed that the Prime Minister continued to instruct localities to regularly instruct professional agencies to review and evaluate the ability to disburse the 2018 capital plan for projects to actively adjust the capital plan. At the same time, the Prime Minister should direct the localities with low disbursement rate to directly report to the Prime Minister the causes and propose solutions to overcome.

As for the source of capital for people of merit, the Ministry of Planning and Investment should urgently have plans to submit to the Prime Minister to report to competent authorities to remove difficulties for localities so that the units soon have grounds for actual implementation.

nhan dien 6 nguyen nhan khien giai ngan tai dia phuong thap Good budget disbursement only when planning closely

VCN- 2018 budget disbursement has improved since 2017, at a rate higher than 10%, but still lower ...

As for capital for debt settlement and recovery, the localities should urgently urge investors to complete their dossiers and send them to the State Treasury to complete the procedures for capital recovery and repayment of mechanical construction debts in accordance with the current regulations.

By Hong Van/ Hoang Anh