Eliminate ineffective project, speed up the disbursement of public investment capital

VCN - The disbursement rate of the public investment plan for the period 2016-2018 is low, up to now only 72% of the central budget plan has been allocated for the period 2016-2018. The cause of this situation is due to problems arising from the Law on public Investment as well as some regulations in this field.
eliminate ineffective project speed up the disbursement of public investment capital Ministry of Finance has rectified the report on disbursement of investment capital
eliminate ineffective project speed up the disbursement of public investment capital Public investment: resolutely adjust the capital of slow-moving projects
eliminate ineffective project speed up the disbursement of public investment capital Disbursing 100% public investment in 2018 is a challenge
eliminate ineffective project speed up the disbursement of public investment capital
As of 31/10/2018, the new disbursement rate was VND 367,961 / 513,446 billion. Photo TL.

This is the opinion of the delegates at the seminar "Strengthening Payments of Public Investment capital in the Context of Implementing Public Investment Laws" coordinated by the Investment Department with the Institute of Strategy and Policy Studies (Ministry of Finance) held on the afternoon of November 7 in Hanoi.

Plan and practice the difference According to Le Tuan Anh, deputy director of the Investment Department of the Ministry of Finance, in terms of annual budget plans, levels and sectors have always set a target to ensure full disbursement. However, the reality shows that there is always difference. In 2016, the central budget disbursement rate was 89.1% and 77.1% in 2017 respectively. As of 31/10/2018, the new disbursement rate was VND 367,961 / 513,446 billion. According to Mrs. Luong Thi Hong Thuy, Deputy Director of the Department of Treasury and State Treasury Control, one of the reasons is the policy constraints in the Law on Public Investment, Construction Law, Bidding Law and Land Law, along with the problem in compensation and land clearance: the progress of compensation, ground clearance is often prolonged, obstacles when implementing ...

Decree No. 37/2015 / ND-CP stipulates that the advance of the contract must not exceed 50% of the contract value at the time of signing. However, it is not required to withdraw the advance from the first time. The advance capital must be recovered from time to time. Therefore, the time to monitor the balance of advance is long, easy to risk in the process of expenditure control.

Representatives of the State Treasury also said that in the process of implementation, the assignment of competent authorities to assign budget estimates to agencies and units under its lower levels is still slow. In addition, the time for disbursement of public investment plans is extended to the following year, causing moral hazard for ministries, sectors and localities. New Year starts to urge the implementation of the plan. If the plan is not fully implemented, it will be transferred to the next year for further implementation, thus affecting the annual disbursement rate of public investment.

Remarkably, the acceptance of completed volumes and compilation of payment dossiers sent to the State Treasury of investors and project management boards in many cases is still slow and not compliant with the prescribed time limit. The time taken to implement administrative procedures in the field of construction investment of some projects is extended compared with the regulations because the results of implementation of administrative procedures depend on the approval of many agencies, multi-level specialized management. Eliminate ineffective projects To achieve the economic growth target for 2018 of 6.7% while inflation shows signs of increasing, according to Dr. Vu Dinh Anh, in the remaining months of 2018 many powerful and effective solutions are needed, It is necessary to speed up the disbursement of public investment capital in general and central investment capital from the state budget in particular. However, priority should be given to improving the efficiency of public investment and at the same time linking the disbursement schedule for public investment with inflation control.

In addition, it is necessary to speed up the disbursement process by resolutely removing ineffective projects and not fully preparing procedures to focus on high efficiency projects. On the other hand, further reform of investment management procedures and disbursement of public investment funds, minimizing complicated procedures, and complicated application, to make it possible for good project investors to accelerate implementation progress. "The decision to speed up the disbursement of public investment funds is to select the right projects that are good, directing the capital to these projects to speed up the implementation. In addition, lessons should be learned to improve the law, management mechanism along with strengthening the discipline of spending to reduce the lowest waste. Only so new public investment contributes to practical economic growth, maintains macroeconomic stability," Anh emphasized. Representatives of the State Treasury also recommended that the Government instruct ministries, sectors and localities to focus on policy and mechanism issues as stipulated in the Construction Law, the Investment Law, the Bidding Law ,the Land Law and the guidelines... to timely remove difficult barriers, obstacles and create favorable conditions for projects to implement in accordance with the schedule with high quality ... In addition, it is recommended that the Government continue to direct the ministries, branches and localities to drastically implement measures to accelerate the disbursement of public investment capital and to have mechanisms to supervise the results and raise the leader’s responsibility of each division, the responsibility of each cadre. In line with Resolution No. 01 / NQ-CP dated 1/1/2018 and Resolution No. 70 / NQ-CP dated 3/8/2017 of the Government to implement timely, there are plans to evaluate each period, pushing quick disbursement of public investment funds, ensuring the completion of the assigned plan. At the local level, representatives of the HCM City Department of Finance said that since the Law on Public Investment came into force, Ho Chi Minh city has been allowed to disburse annual ODA budgets in line with the plan approved by the Prime Minister and assigned by the Ministry of Planning and Investment without following the schedule of implementation and funding of foreign donors, affecting the progress of implementing key projects, In the context of budget constraints, while the needs for large localities, the attraction of ODA is necessary.

eliminate ineffective project speed up the disbursement of public investment capital Shortcomings in Decree guiding the Law on Public Investment need to be amended

VCN- The State budget management mechanism under the Law on Public Investment (2015) has made fundamental changes ...

Therefore, the city proposed to disburse the annual ODA budget in accordance with the progress of funding donors while waiting for completion of procedures for adjustment of investment total. On the other hand, the Law on Public Investment has promoted decentralization. Therefore, in order to reduce administrative procedures and workload for localities, it is necessary to adjust the Public Investment Law in the direction of the provincial People's Committee to submit to the ministries and branches for checked opinions of medium-term public investment plan of central budget; Provincial People's Committees will take the initiative and be responsible for organizing the elaboration and appraisal of medium-term public investment plans, sources of funding for local budget balances, and submit them to the People's Councils for decision.

By Thuy Linh/ Bui Diep

Related News

Prioritize resources and promptly supplement capital for policy credit

Prioritize resources and promptly supplement capital for policy credit

VCN- In the near future, to further promote the effectiveness of policy credit, the Ministry of Finance will continue to preside over and coordinate with relevant ministries, branches and the Vietnam Bank for Social Policies (VBSP) to implement many key solutions.
Solutions to establish a green ecosystem in the logistics industry

Solutions to establish a green ecosystem in the logistics industry

VCN - In the current context, if the criteria to "green" the logistics industry are not quickly implemented, in the future, businesses will face many difficulties and gradually be "eliminated" from business, domestic trade and global import and export. Mr. Dao Trong Khoa (Photo), Standing Vice President of Vietnam Logistics Services Association, talked about some issues surrounding green logistics transformation.
Build a flexible mechanism and "reinforce" governance for state-owned enterprises

Build a flexible mechanism and "reinforce" governance for state-owned enterprises

VCN - State-owned enterprises (SOEs) always need flexible and responsive operating mechanisms as well as adequate legal corridors to remove bottlenecks and free up resources for SOEs in socio-economic development
Multiple tasks directed by the Government to stimulate growth and control inflation

Multiple tasks directed by the Government to stimulate growth and control inflation

VCN - The government recently issued Resolution No. 93/NQ-CP concerning the principal tasks and solutions for fostering growth, controlling inflation, and stabilizing the macroeconomy.

Latest News

2025 budget estimation must be practical, accurate and efficient

2025 budget estimation must be practical, accurate and efficient

VCN - Directing the 2025 state budget estimation, Minister of Finance Ho Duc Phoc emphasized that units must ensure that the 2025 budget estimation must be practical, accurate, efficient, and meet the requirements for performing professional and political tasks assigned to central and local agencies.
The corporate bond market will be more vibrant in the second half of the year

The corporate bond market will be more vibrant in the second half of the year

VCN - In the first half of 2024, with bond maturity pressure continuing to increase, corporate bond issuance has shown many positive signs compared to the previous year. According to forecasts, businesses' need to borrow and issue corporate bonds will accelerate in the second half of 2024.
Measures suggested to boost startups’ access to capital

Measures suggested to boost startups’ access to capital

The recent vigorous growth of startups in Vietnam has attracted domestic and foreign investors, but insiders recommended more efforts be made to facilitate startups’ access to funding from investors so that they can live up to potential.
Inflationary pressure seen from monetary policy

Inflationary pressure seen from monetary policy

VCN - The economy went through the first half of the year, inflation is still under control and forecast to reach the target set by the National Assembly and the Government. However, variables from the currency market such as exchange rates, interest rates, credit..., even gold prices, are issues that need to be paid attention.

More News

Banks with the problem of promoting credit growth

Banks with the problem of promoting credit growth

VCN - It is estimated that by the end of June 2024, the economy's credit growth will reach nearly 4.5%. This number is still far from the yearly credit growth target of 14-15%.
Proposal to increase Special Consumption Tax on tobacco products

Proposal to increase Special Consumption Tax on tobacco products

VCN - At the workshop Special Consumption Tax on cigarettes held by Vietnam Tax Consulting Association and the Institute of Financial Strategy and Policy on July 16, experts and businesses clarified the goals and content of amended the special consumption tax policy on tobacco products. According to experts, there cannot be a solution that fully ensures the benefits of both consumers, the state and businesses, but it is necessary to choose the most optimal option to achieve the initially set goals.
Savings of individual customers at banks hit record high

Savings of individual customers at banks hit record high

In spite of low interest rates, figures from the State Bank of Vietnam (SBV) released this week show deposits of individual customers increased by more than VNĐ39.7 trillion in April, to reach more than VNĐ6.7 quadrillion.
Managing fiscal policy has achieved many positive and comprehensive results

Managing fiscal policy has achieved many positive and comprehensive results

VCN - On July 15, the Ministry of Finance held an online conference to summarize state budget financial work in the first 6 months of the year, implementing tasks in the last 6 months of 2024. Minister of Finance Ho Duc Phoc attended and directed the conference. Also attending the Conference were Deputy Ministers of Finance, leaders of units under the Ministry of Finance.
Determine tools, policy for inflation control

Determine tools, policy for inflation control

VCN - According to economic expert Associate Professor, PhD. Ngo Tri Long (photo), former Director of the Price Market Research Institute (Ministry of Finance), inflation is an issue that needs special attention, especially related to the management of monetary policy, interest rates, increasing prices of goods and services...
The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.
Imposing and raising special consumption tax contributing to change consumption behavior

Imposing and raising special consumption tax contributing to change consumption behavior

VCN - At the Workshop on Comments on Completing the Revised Law on Special Consumption Tax (SCT) organized by the Vietnam Confederation of Commerce and Industry (VCCI) on July 11, many experts and businesses contributed their opinions to clarify the importance and impact of the revised special consumption tax law, which emphasizes the addition of taxable areas or tax increases to change society's consumption behavior.
The local Finance sector is flexible and strict in managing budget revenues and expenditures

The local Finance sector is flexible and strict in managing budget revenues and expenditures

VCN - Although the forecast for the last 6 months of the year will still have many difficulties and challenges, the Finance sector in all localities expressed their determination to strive to achieve and exceed estimates, while strengthening the prevention of revenue loss and handling tax debt recovery, etc.
Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

VCN - The Finance industry excellently accomplishes financial and budget tasks in the first half of 2024, said by Minister of Finance Ho Duc Phoc at the Online conference to review performance of financial and budget tasks in the first half of 2024 and set out tasks for the second half of the year.
Read More

Your care

Latest Most read
2025 budget estimation must be practical, accurate and efficient

2025 budget estimation must be practical, accurate and efficient

VCN - Directing the 2025 state budget estimation, Minister of Finance Ho Duc Phoc emphasized that units must ensure that the 2025 budget estimation must be practical, accurate, efficient, and meet the requirements for performing professional and political
The corporate bond market will be more vibrant in the second half of the year

The corporate bond market will be more vibrant in the second half of the year

VCN - In the first half of 2024, with bond maturity pressure continuing to increase, corporate bond issuance has shown many positive signs compared to the previous year. According to forecasts, businesses' need to borrow and issue corporate bonds will acc
Prioritize resources and promptly supplement capital for policy credit

Prioritize resources and promptly supplement capital for policy credit

VCN - According to the VBSP, by the end of June, total policy credit capital rose 7.6% year-on-year to VND 372,723 billion, including entrusted capital from the local budget at VND46,929 billion, an increase of VND7,755 billion, accounting for 12.6%.
Measures suggested to boost startups’ access to capital

Measures suggested to boost startups’ access to capital

The recent vigorous growth of startups in Vietnam has attracted domestic and foreign investors, but insiders recommended more efforts be made to facilitate startups’ access to funding from investors so that they can live up to potential.
Inflationary pressure seen from monetary policy

Inflationary pressure seen from monetary policy

The economy went through the first half of the year, inflation is still under control and forecast to reach the target set by the National Assembly and the Government
Mobile Version