Accelerating public investment disbursement to stimulate growth

Positive results

The Ministry of Finance has just reported to the Prime Minister on the situation of payment of investment capital from the State budget accumulated for 7 months, estimated to implement 8 months of the 2023 plan.

Commenting on the capital disbursement situation, the Ministry of Finance said that the estimated disbursement rate for 8 months reached 39.6% of the plan. Compared to the plan assigned by the Prime Minister of 42.35%, the estimated disbursement rate for 8 months of the 2023 plan increased significantly compared to the same period in 2022 (the same period in 2022 reached 39.15%); of which domestic capital reached 43.03% (the same period in 2022 reached 40.87%), foreign capital reached 25.95% (the same period in 2022 reached 14.02%).

There are 11 ministries, central agencies and 33 localities with disbursement rates reaching 40%. Some ministries and localities with high disbursement rates include: Ho Chi Minh Mausoleum Management Board (65.38%), State Bank (62.75%), Development Bank (100%), Tien Giang (62.12%), Long An (66.18%), Dong Thap (66.94%).

Strive to disburse public investment capital from the State budget in 2023 to reach over 95% of the plan assigned by the Prime Minister. Photo: Luong Bang

41/52 ministries, central agencies and 30/63 localities only disbursed less than 40% of the capital plan; of which 33 ministries, central agencies and 08 localities had a disbursement rate of less than 25% of the capital plan.

Another statistic from the Ministry of Transport also shows that public investment disbursement is very positive.

According to the Department of Planning and Investment (Ministry of Transport), by the end of August 2023, of the total public investment capital plan assigned by the Prime Minister (over VND 95,200 billion), the Ministry of Transport disbursed about VND 49,723 billion, reaching about 52% of the annual plan. The disbursement progress reached 95% compared to the plan registered by investors.

Compared to the same period in 2022, the disbursement result is more than 2 times higher in value and 12% higher in rate (by the end of August 2022, the Ministry of Transport disbursed about VND 22,263 billion, reaching about 40% of the plan).

Continue to promote public investment, striving to reach 95%

According to the Ministry of Finance, some difficulties affecting the disbursement progress of projects are as follows: Some projects are completing all investment procedures to allocate capital, so the 2023 plan cannot be disbursed yet; some ministries, central and local agencies are proposing to adjust the 2023 plan down, so capital cannot be allocated in 2023.

Some localities have not yet organized land auctions, so there is no revenue to disburse for the project.

Problems related to fluctuations in raw material prices, difficulties in supply, scarcity of raw materials, investors must carry out procedures for adjusting contract price estimates; slow approval of adjustments to investment policies, project adjustments; extension of ODA project agreements (Can Tho Riverbank Embankment Project - Climate Change Response, Can Tho Provincial Oncology Hospital Project), projects using ODA capital must carry out adjustment procedures, bidding, acceptance, all must have a letter of no objection from the sponsor, so it takes a lot of time.

Some projects (monuments, healthcare) are delayed due to having to carry out specialized procedures, slow implementation of the step of selecting a price appraisal unit, and bidding documents.

IT projects have complex technical requirements while legal documents are not fully regulated.

To achieve the goal (striving to disburse public investment capital from the State budget in 2023 to reach over 95% of the plan assigned by the Prime Minister), the Ministry of Finance requests ministries, central agencies and localities to focus on directing the removal of obstacles to quickly and effectively implement key tasks on disbursement of public investment capital, proactively adjusting capital plans in a timely manner from projects with slow disbursement to projects in need of additional capital and with the ability to disburse in accordance with regulations and in accordance with the direction of the Government and the Prime Minister in Resolutions, Directives and Official Dispatches on promoting disbursement of public investment capital.

Prime Minister Pham Minh Chinh recently signed Official Dispatch 749/CD-TTg dated August 18, 2023 requesting ministries, branches and localities to speed up the disbursement of public investment capital in the last months of 2023.

The Prime Minister requested ministries, central and local agencies to step up the allocation, implementation and disbursement of public investment capital, capital sources for the Socio-Economic Recovery and Development Program, 3 National Target Programs; speed up the implementation of key and important national public investment projects, highways, key and inter-regional projects, projects with spillover effects, etc.; identify this as one of the key political tasks, focusing on priority in direction and administration, associated with the responsibilities of the heads of ministries, central and local agencies.

Luong Bang

Source