Disbursement is not as expected

	Disbursement of investment capital through treasury reaches 63.7 percent
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	As the end of the year nears, some units have not disbursed investment capital

20 ministries, branches and sevenlocalities have disbursement rate below 50 percent. Photo: ST.

Big plan, low disbursement

Statistics of the Ministry of Finance show the estimated disbursement of investment capital from the State budget in 11 months of 2019 is more than VND231,664 billion, accounting for nearly 54 percent of the plan assigned by the National Assembly and reaching over 58 percent compared to the plan assigned by the Prime Minister, lower than the same period (nearly 62 percent). Domestic disbursement is over VND217,078 billion, reaching nearly 62 percent plan assigned by the Prime Minister (Government bond capital disbursed is nearly VND13,000 billion, reaching over 33 percent and national target programme is reaching over VND10,498 billion dong, reaching over 58 percent); foreign capital disbursed more than VND14,586 billion, reaching 31 percent of the plan assigned by the Prime Minister.

Disbursement of public investment plans in the last 11 months of ministries, sectors and localities is also lower than the same period in 2018. Of which, sixministries, branches and 12 localities have disbursement rate of over 80 percent. Especially, fourministries, branches and fourlocalities have disbursement rate of over 90 percent. Especially, there are threeunits that have completed disbursement: Vietnam Development Bank, Writers Association andBank of Agriculture and Rural Development. Some units with the disbursement rate of over 90 percent were: Electricity of Vietnam, Hai Duong, and BinhPhuoc.

Many ministries, branches and localities have a large number of capital plans and are making good disbursement progress. For example, QuangNinh province disbursed more than 90 percent of the plan assigned by the Prime Minister (VND7,663 billion); Vietnam Bank for Social Policies disbursed more than 83 percent of the assigned capital plan (over VND7,148 billion); ThanhHoa disbursed more than 82 percent of the assigned capital plan (over VND6,872 billion dong); the Ministry of Defencedisbursed nearly 81 percent of the assigned capital plan (more thanVND6,407 billion).

However, there are still 28 ministries, branches and 14 localities with disbursement rates lower than the national average (more than 58 percent); of which, 20 ministries, branches and sevenlocalities have disbursement rates of less than 50 percent. Notably, the Ministry of Transport has the largest capital plan, amounting to more than VND28,737 billion but capital disbursement has only reached 34 percent. The Ministry of Health only disbursed 26.66 percent of the Prime Minister's assigned capital of over VND6,688 billion dong. Dong Nai has a large number of planned capital of more than VND14,000 billion, only 27 percent of disbursement.

The two "economic leaders", Ho Chi Minh City and Hanoi, are also in the group with large capital plans and low disbursement rates. So far, Ho Chi Minh City has disbursed nearly 43 percent of the plan (VND37,589 billion) and Hanoi has disbursed more than 45 percent of VND47,334 billion.

Facilitating settlement

To promote disbursement, after many meetings to listen to the difficulties and problems of ministries, branches and localities, the Government issued Resolution No. 94/NQ-CP on October 29, 2019 on major tasks and solutions to accelerate the allocation and disbursement of the plan for public investment in 2019.

Due to the newly issued resolution, the impact on disbursement progress is not much, leading to the disbursement progress not being as prosperous as expected. According to arepresentative of the Department of Investment - Ministry of Finance, in implementing this resolution, the Ministry of Planning and Investment has proposed the Prime Minister assign more than VND7,326 billion of the capital plan in 2019 to ministries, branches and localities. The Ministry of Finance also workedwith the Ministry of Planning and Investment to give timely comments on the adjustment of the capital plan in 2019.

Accordingly, ministries, sectors and localities have reviewed the disbursement status of projects up to October 31, 2019 and proposed plans to adjust the 2019 capital plan forprojects that are unable to disburse or disburse incompletely assigned capital to projects that need additional capital and are capable of good disbursement.

Several ministries and branches have been allowed by authorities to adjust the plans, such as the Ministry of Science and Technology, the Ministry of Planning and Investment, the Ministry of Culture, Sports and Tourism and the Ministry of Transport. A number of localities have issued documents directing departments, agencies, districts and investors to closely follow the directions of the Prime Minister to accelerate the disbursement of public investment.

There is one month to the end of the year; the Ministry of Finance has sent a dispatch to request ministries, branches and localities urgently review proposals so competent authorities canconsider adjusting slow disbursement projects into projects with good disbursement potential.

The Ministry of Finance proposes the Prime Minister assign the Ministry of Planning and Investment continue reviewing and reporting to the Prime Minister on handling plans for the capital plans in 2019 that are not likely to be allocated in 2019, in accordance with the guidance in Resolution No. 94.

Regarding the settlement - one of the reasons for the delay, according to Mai ThiThuy Duong - Deputy Director of the Department of Investment, Ministry of Finance, Ministry of Finance has directed the State Treasury system to coordinate and guide units in completing dossiers, procedures for advance and payment, ensuring all dossiers and vouchers eligible for payment of investment capital will be received and settled strictly in accordance with the prescribed time and regime. At the same time, the State Treasury will issue a document to urge investors and project management boards to accelerate project progress, pre-acceptance test when the completed volume and complete dossiers and procedures to send to the Treasury for controlling payment, recovering advance capital and avoiding accumulation at the end of the year, causing difficulties for expenditure control and disbursement.

The Ministry of Finance has also requested the agency approve the final settlement of completed projects to direct concerned agencies to strictly implement regulations; at the same time, clearly identify the causes and responsibilities of collectives and individuals in case of violating. Investors and project management units should abide by the regulations on time of documenting; improve capacity and compliance with investment project management; coordinate with the settlement verification agency to provide information, explanation in settlement verification stage.

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The Treasury system is responsible for urging investors, contractors, and project management boardsspeed up the progress andearly completion of dossiers for payment. Leaders of the State Treasury have requested the Treasury system absolutely not leave any payment recordsbacklogged with unclear reasons. This shows the determination of financial agencies in providing maximum support to investors and project management boards to accelerate the disbursement of public investment capital, promoting economic growth.