Minister of Finance Ho Duc Phoc presents the report. Photo: Pham Kien/TTXVN
Presenting the report at the session, Minister of Finance Ho Duc Phoc stated that Clause 1, Article 6 of the Law on Public Investment stipulates that projects for renovation, upgrading, and expansion, including the purchase of assets and equipment, are public investment projects. The implementation process has encountered some difficulties, especially regarding inconsistent interpretations of the aforementioned regulation among various agencies. Therefore, the Government is submitting this regulation to the Standing Committee of the National Assembly for consideration and written clarification to ensure a unified understanding in its implementation.

The first interpretation is that the Law on Public Investment does not stipulate any restrictions on the subjects of tasks and projects using recurrent expenditure funds from the State budget.

The second interpretation suggests that all projects with a construction component for new construction, renovation, upgrading, or expansion of existing projects (belonging to infrastructure and physical facility construction activities) and all projects for purchasing assets, purchasing and repairing, upgrading equipment and machinery (without a construction component) are subject to the Law on Public Investment, and therefore must be implemented using public investment capital. Accordingly, all new construction, renovation, upgrading, expansion, asset purchase, and equipment and machinery repair and upgrading activities must use public investment capital, must be included in the medium-term and annual public investment plans, and cannot use recurrent expenditure funds.

"Understanding it in the second way would lead to complications, because procurement, upgrading, and repair activities are unforeseen, diverse, and often unpredictable, making it difficult to plan them over a five-year period," Minister Ho Duc Phoc clarified.

Therefore, the Government submits this regulation to the Standing Committee of the National Assembly for consideration and written explanation to ensure a unified understanding in its implementation, especially to clarify whether (or not) regular State budget funds allocated annually can be used for the construction, upgrading, renovation, expansion, procurement, and repair of public assets.
The scene at the meeting. Photo: Pham Kien/TTXVN

Presenting the verification report, the Chairman of the National Assembly's Finance and Budget Committee, Le Quang Manh, stated that the verification agency believes that the content of Clause 1, Article 6 of the Law on Public Investment is for classifying public investment projects and does not mean prohibiting the use of other capital sources for procurement, minor repairs, maintenance, and upkeep.

"The law's provisions are clear, but to resolve the Government's difficulties in interpreting this regulation, the Standing Committee of the Finance and Budget Committee unanimously agreed to submit this matter to the National Assembly Standing Committee for consideration and comments," the Chairman of the Finance and Budget Committee stated.

Accordingly, the Finance and Budget Committee proposes clarifying that Clause 1, Article 6 of the Law on Public Investment stipulates the classification of public investment projects and does not restrict (or prohibit) the use of other capital sources to renovate or upgrade already constructed projects for repair or purchase of assets and equipment.

In terms of form, the reviewing body proposed two options. Option 1 is for the Standing Committee of the National Assembly to issue a Resolution explaining the law on the aforementioned content. Option 2 is to issue a document notifying the conclusions of the Standing Committee of the National Assembly regarding the Government's submission.

Regarding the use of recurrent funds for projects to upgrade, renovate, and repair works and equipment, the Finance and Budget Committee stated that the reviewing body recommends that the Government direct ministries and agencies to review and, based on legal regulations, establish regulations and guidelines for the use of recurrent funds from the State budget to ensure clarity, strictness, compliance with regulations, and to prevent abuse in order to ensure consistent implementation.

Previously, the Standing Committee of the National Assembly had given its opinion on the explanation, acceptance, and revision of the draft Law on Credit Institutions (amended).

After 1.5 days, the 29th session of the National Assembly Standing Committee concluded its agenda. In his concluding remarks, National Assembly Chairman Vuong Dinh Hue assessed that the first regular session of the National Assembly Standing Committee in 2024, with its main focus on providing input on preparations for the 5th extraordinary session of the National Assembly, had been largely prepared and met the requirements for finalization and submission to the National Assembly for consideration and decision. The National Assembly Chairman requested the Secretary General and the Head of the National Assembly Office to promptly issue a notice summarizing the conclusions of the National Assembly Standing Committee session.
VNA