100% of public investment disbursement will not be reached as planned.

Many projects have had slow disbursement of public investment. Picture for illustration: Internet.

On the afternoon of 23 December, 2016, Politburo member and Deputy Prime Minister Vuong Dinh Hue, the leader of the disbursement of public investment team of the Government chaired a meeting of the team to assess the work done.

Statistics of the Ministry of Finance shows, since Decree 60/2016/NQ-CP of the Government in July 2016 and the Dispatch 2144/CD-TTg of the Prime Minister to accelerate public investment disbursements in October, the progess of disbursement of the last 5 months has been much faster than before.

Specifically, by the end of November 2016, the capital disbursement in the State budget has increased 2 times from earlier in July 2016. As estimated, public investment disbursement in the State budget in 12 months reached 109,094 billion vnd, nearly 83% of the plan, in which the domestic capital reached 77.8% of the plan, and foreign capital achieved 90% of the plan.

About the government bond, disbursement in 11 months was 22,129 billion vnd, reached 53.5% of the plan, 2 times that of July 2016. As estimated, disbursement in the whole country in 12 months reached 31,800 billion vnd, achieved 67% of the plan in 2016.

However, the Ministry of Planning and Investment said the disbursement of several ministries, branches and localities has been slow.

Deputy Prime Minister Vuong Dinh Hue thinks that ministries, branches, and localities have tried, however, the progess of disbursement in the last months was not enough to compensate for the slowness in the earlier part of the year. Though the Law on Investment schedules to complete the 2016 payment and disbursement on 30 January 2017, as the current situation, it will not reach 100% of the plan.

Deputy Prime Minister Vuong Dinh Hue also expressed impatience when 16,000 billion vnd of surplus capital from 2 projects to expand the National Route 1A and Ho Chi Minh Trail through the Highlands was not disbursed by the Ministry of Transport, even though the Prime Minister allocated the capital for implementing in October 2016.

The Deputy Prime Minister ascertained that the reason for the delay was in the legal system and guidelines; in application and enforcement of the law, the bureaucracy of the system, unprofessional attitude, and not close collaboration among ministries and branches.

In order to continue to carry on the 2016 plan and promote disbursement in 2017, the Deputy Prime Minister has requested the Ministry of Justice to host and collaborate with other ministries in reviewing the issues related to the law, defining clearly problems in laws, decrees, circulars, or in awareness of the staff and applying law to remove difficults, urging ministries, branches and localities.

On the amendment to Decree 59/2015/ND-CP on management of construction invesment projects, the Ministry of Contruction continues to strengthen decentralization in project evaluation; continues to deal with obstacles in land clearance, collaborate with other ministries and branches in implementing public investment projects.

Ministries, branches, and localities disbursed 50% of the plan must have rigorous review with the Prime Minister, and as at 31 December 2016, send reports on disbursement of the absolute value, list of slow-disbursement projects, and propose the transfer of funds to other projects, even cut investment.

On the non-disbursement of 16,000 billion vnd of surplus capital from the projects to expand the National Route 1A and Ho Chi Minh Trail through the Highlands, the MOT and other related ministries must report specifically about each project, and submit before 31 December 2016. The Ministers and heads of ministerial-level agencies handle the personal liability of officials whom make slow disbursement of the funds.

The Deputy Prime Minister has also allocated the Office of the Government, the Ministry of Planning and Investment, the Ministry of Finance to control tightly projects lasting from 2016 to 2017, only allowing certain projects to continue; the Ministry of Planning and Investment continues to update the disbursement of public investment to serve the meeting of Government and localities later this month.