Creating a breakthrough in disbursement of public investment capital

VCN – In order for the public investment disbursement rate in 2023 to reach the set target, from the first months of the year, many fundamental and feasible solutions have been taken to remove problems in this work.
State Treasury control State Budget capital expenditure effectively from the beginning of 2023 State Treasury control State Budget capital expenditure effectively from the beginning of 2023
Ministry of Finance urges disbursement of public investment capital in 6 localities Ministry of Finance urges disbursement of public investment capital in 6 localities
Urgent capital needs for projects of the General Department of Taxation and the General Department of Customs Urgent capital needs for projects of the General Department of Taxation and the General Department of Customs
By Thuy Linh/ Huyen Trang
Photo: Vietnam News

Many solutions have been taken

By the end of January 31, 2023, the total disbursed state budget investment in 2023 was about VND 12,819 billion, reaching 1.72% of the plan set by the Ministry of Finance and 1.81 % of the plan assigned by the Prime Minister. Foreign capital has not been disbursed. The low disbursement rate in the first months is because, in January 2023, ministries, central agencies and localities focused on assigning detailed capital plans for projects and preparing investment procedures to disburse capital plans, reported the Ministry of Finance.

According to the Ministry of Finance, in 2023, the pressure of disbursement is heavy because, in addition to disbursing capital assigned in the year, the remaining capital for the social-economic recovery and development program must be disbursed. Therefore, from the beginning of the year, many ministries, central and local agencies have been striving to reach the highest disbursement rate

For example, at the Ministry of Transport, in 2023, the Prime Minister assigns the Ministry of Transport a disbursement of VND94,161 billion. In January 2023, the Ministry of Transport issued a directive to speed up the disbursement of public investment, and deliver a detailed capital plan of the first phase to projects which have completed procedures with total capital of 94,135 billion VND (reaching 99.97%). By the end of January 2023, the Ministry of Transport has disbursed VND 1,700 billion (accounting for 1.81% of the capital plan).

According to the Ministry of Transport, to complete the disbursement task in 2023, the Ministry must disburse VND 8,000 billion per month on average. Therefore, the Ministry has focused on this work from the beginning of the year and required agencies and units to uphold the responsibility of the leader, to change thinking, and creatively apply new to new models to get the best results.

Or in Ninh Binh - one of the provinces with the highest disbursement rate in 2022, the Provincial People's Committee has just issued a decision to establish a Working Group to accelerate the disbursement of public investment capital in 2023 for works and projects in the province. The working group includes 13 members, led by the Chairman of Ninh Binh Provincial People's Committee. The working group is in charge of directing and coordinating with other units to solve tasks related to the implementation progress, quality of works, and disbursement progress of capital sources in 2023 of projects and works in Ninh Binh province, ensuring capital allocation target in 2023.

As for Hanoi - the city with a large amount of public investment capital, this city is also determined to disburse all the assigned capital by the end of 2023 with drastic solutions. The Hanoi People's Committee has requested the units to strictly comply with the provisions of the law on public investment, the principles, criteria, and order of priority for allocating investment capital from the state budget; improve the quality of the capital planning work, ensuring it is suitable with the project's capacity and performance; enhance the effectiveness of the disbursement according to the principle of post-inspection to ensure compliance with regulations and efficiency of public investment;

Continue to review and implement administrative reform for the procedures of construction investment, compensation for site clearance, and land recovery as well as uphold the role and responsibility of the leader in accelerating the implementation and disbursement of capital construction investment, improving the efficiency of investment capital. Hanoi also arranges and uses state budget capital for investment as "priming capital" to maximize capital sources of other economic sectors.

Identifying difficulties

Looking back at 2022, although the Government issued many resolutions, directives, public messages and documents to accelerate the disbursement of public investment capital, the disbursement is still very sluggish. According to Mr. Duong Ba Duc, Director of the Investment Department (Ministry of Finance), there are 25 existing problems and difficulties in many different fields, which are classified into three groups. The first group includes institutions, mechanisms and policies; main difficulties in the field of land, natural resources and environment; the field of state budget and public property, construction; bidding and public investment.

The second group includes difficulties related to implementation, such as the progress and quality of the formulation, appraisal, approval, and assignment of investment capital plans is not guaranteed and does not closely follow the performance capacity, leading to delays in the next steps; the direction is not drastic, the capacity of the project management agency is still limited with the psychology of putting the work at the end of the year; difficulties from donors for ODA projects. The third group is the skyrocketing prices of construction materials, especially, the price of gasoline, oil, iron, steel, soil, and sand in the first period of 2022.

According to a representative of the Ministry of Finance, despite some difficulties as mentioned, there are many provinces recording good disbursement rates. That's because they have proactively proposed solutions from the time of formulating the annual plan.

Therefore, in order to improve the disbursement of public investment capital, ministries, central and local agencies need to strictly implement capital allocation principles and criteria. The first is to give priority to the recovery of advance capital. The second is to pay for all projects which have been completed and put into use and are pending settlement; projects that have been settled but are still short of capital; completed projects in the 2023 plan. This is the factor to quickly conduct disbursement.

For transitional projects, it is necessary to review, and prioritize capital for inter-regional and key projects. New construction projects must meet all criteria such as sufficient investment procedures and not be entangled in construction sites. As for the key projects, the disbursement strictly follows the set plan.

Localities propose to remove bottlenecks in disbursement of public investment Localities propose to remove bottlenecks in disbursement of public investment

Currently, the Ministry of Construction, the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, and the Ministry of Finance have specific solutions to handle and propose to competent authorities to handle difficulties and problems related to the policy. However, the strongest and most practical solution still lies in the high determination of ministries, central and local agencies in the implementation of disbursement.

By Thuy Linh/ Huyen Trang

Related News

The Government plans to borrow maximum of VND676,057 billion and repay debt of VND453,990 billion in 2024

The Government plans to borrow maximum of VND676,057 billion and repay debt of VND453,990 billion in 2024

VCN – The Loan and Public debt payment plan in 2024 and the 3-year public debt management program for 2024 - 2026 have been approved by Deputy Prime Minister Le Minh Khai in Decision No. 260/QD-TTg.
Top 500 fastest growing enterprises 2024: Determination to recover after experienced "headwinds"

Top 500 fastest growing enterprises 2024: Determination to recover after experienced "headwinds"

VCN - On March 11, 2024, Vietnam Report JSC (Vietnam Report) coordinated with VietNamNet to announce the 2024 list of the top 500 fastest-growing enterprises in Vietnam (FAST500). A survey report published on the same day by Vietnam Report shows that, despite many impacts from "headwinds" in 2023, the top 500 fastest-growing enterprises in Vietnam in 2024 are still determined to overcome difficulties and rise to development.
Efficiency from State investment credit line

Efficiency from State investment credit line

VCN - With changes in the method of determining lending interest rates, along with regulations aimed at liberalizing conditions and authority of the Vietnam Development Bank (VDB), access to State investment credit is expected to become more convenient.
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

VCN - The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.

Latest News

Banks promote online lending services

Banks promote online lending services

Banks are strongly stepping up online lending services via digital channels.
Complete tax compliance management for business households and individuals

Complete tax compliance management for business households and individuals

VCN - Facing with the situation where there are still businesses hiding in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs, the General Department of Taxation said it would strengthen management to reduce fraud and tax evasion for individuals and business households.
Companies unveil M&A plans across multiple sectors at shareholders

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.
How did many banks

How did many banks' profits surge in Q1 2024?

VCN - The business results for Q1 2024 of commercial banks showed positive growth, with some banks experiencing up to 165% growth. Despite low credit growth, the banks' growth stemmed from other types of business and services.

More News

New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

VCN - Circular No. 24/2024/TT-BTC that provides guidelines for public sector accounting will take effect from January 1, 2025 and will be applied from fiscal year 2025, will have regulations to meet requirements of streamlined and effective accounting apparatus.
A series of solutions to improve administrative reform results in the Finance sector

A series of solutions to improve administrative reform results in the Finance sector

VCN - According to recently announced results, the Ministry of Finance is in the group of 3 leading ministries and ministerial-level agencies in the Administrative Reform Index 2023. However, some component criteria of the Ministry of Finance are still ranked at the lower level. To overcome this, the Finance sector proposed many synchronous and key solutions.
After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.
Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
PM chairs meeting on fiscal, monetary policy management

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.
Completely resolve problems and accelerate public investment disbursement

Completely resolve problems and accelerate public investment disbursement

VCN - In the first 4 months of 2024, the disbursement of public investment capital reached 17.46% of the plan assigned by the Prime Minister, higher than 15.65% in the same period last year. However, to further speed up this work, the Ministry of Finance believed that it needed to urgently overcome problems that have existed for a long time, especially in key projects.
Tax, land rent payment deadlines to be extended this year

Tax, land rent payment deadlines to be extended this year

Payment deadlines for value added tax (VAT), corporate income tax, personal income tax, and land rent in 2024 are set to be extended, involving a total tax value of nearly 84 trillion VND (3.3 billion USD).
Tax compliance management in the digital economy

Tax compliance management in the digital economy

VCN - The management of tax compliance in the digital economy has faced many challenges compared to the traditional economy. The transactions made via the internet environment and digital platforms have caused monitoring, controlling and management difficulties. Therefore, it is required to have appropriate solutions for management and ensuring revenue sources.
Read More

Your care

Latest Most read
Banks promote online lending services

Banks promote online lending services

Banks are strongly stepping up online lending services via digital channels.
Complete tax compliance management for business households and individuals

Complete tax compliance management for business households and individuals

VCN - Facing with the situation where there are still businesses hiding in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs, the General Department of Taxation said it would strengthen management to reduce fraud and tax evasion for individuals and business households.
Companies unveil M&A plans across multiple sectors at shareholders

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.
How did many banks

How did many banks' profits surge in Q1 2024?

The business results for Q1 2024 of commercial banks showed positive growth, with some banks experiencing up to 165% growth.
New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

VCN - On May 6, the Accounting and Auditing Supervisory Department (the Ministry of Finance) held a conference to deploy Circular No. 24/2024/TT-BTC on guideline for pubic sector accounting (Circular 24) of the Ministry of Finance.
Mobile Version