Half of year, some Ministries have not yet distributed the 2018 capital plan

Disbursement in 6 months reached nearly 34% of the Prime Minister's plan. Picture: internet.

The capital has not yet been distributed although it is overdue

Under Clause 2, Article 9 of the Regulation on management and administration of the implementation of national target programs promulgated together with the Prime Minister's Decision No. 41/2016 / QD-TTg of October 10, for the deadline for allocating the capital plan of the National Target Program 2018 to 31 March 2018.

However, June 25th, 2018, in the central level, the Ministry of Information and Communications has not allocated the assigned capital plan in 2018, because the project has not been assessed for capital.

At local authorities, there are 52 out of 53 localities (Thai Binh has not yet reported) that have sent their reports to the Ministry of Finance with the allocated capital of VND10,809,223 billion, equivalent to 97.82% of assigned plan. Of which: National target program on sustainable poverty reduction with allocated capital is 4,895.523 billion VND, reaching 98.21% of the plan; National Target Program on building new rural areas with the allocated capital of VND5,913.7 billion, reaching 97.74% of the plan.

Thus, the local authorities distributed capital slower than the regulations. Most localities allocate funds in March, April and May.

The Ministry of Finance identify the slow allocation has led to slow disbursement due to a number of reasons such as: The ministries which master the program until the beginning of March and mid-March have documents to guide local authorities distribute the fund National Target Program for Sustainable Poverty Reduction; At the same time, some localities have submitted late to the People's Councils for approval; the projects that do not implement the specific regulations have also been delayed due to the requirement to meet the conditions for allocation of capital with the decision approving the project by 31/10/2017.

On the other hand, some localities mainly arranged capital on payment of arrears of basic construction for the new rural program, but by May and June, they were still reviewing the basic construction budget of the new rural program according to Resolution No 32 / NQ-QH of the National Assembly, so there was no data to distribute capital of the plan in 2018.

Disbursement increased 10% over the same period

In terms of disbursement, the payment for the first 6 months of 2018 is VND 130,013,784 billion, equivalent to 32.53% of the plan assigned by the National Assembly and 33.85% compared to the plan assigned by the Prime Minister (in the same period of 2017 reaching 25.59% of the National Assembly's plan and 29.6% of the plan assigned by the Prime Minister).

Specifically, the domestic capital was VND 119.527,02 billion, equivalent to 35.19% of the plan assigned by the National Assembly and 36.05% of the Prime Minister's plan, of which VND 6,664.061 billion were VGBs capital reaching 13.33% of the plan assigned to the National Assembly and 15.9% of the plan assigned by the Prime Minister; NTP capital of VND 2,743,907 billion; accounting for 24.83% of the assigned plan.

The foreign capital was VND 10.486.764 billion; reaching 17,48% of the National Assembly's plan and achieving 19.95% of the plan assigned by the Prime Minister (in the same period of 2017, reaching 26.74% of the plan assigned to the National Assembly and 28.15% of the plan assigned by the Prime Minister).

Disbursement figures of ministries, central and local authorities in the first 6 months of 2018 showed positive changes compared to the first months of the year and reached about 10% higher than the disbursement rate in the same period of 2017. There are 8 ministries, central agencies and 13 localities with high disbursement rate of over 50% of the plan.

However, many ministries, central agencies and localities have low rate of disbursements. Up to 35/56 ministries, central branches and 6/63 localities have a disbursement rate in 2018 lower than 25%.

The reasons are also listed by the Ministry of Finance as follows: Some projects have mechanisms to re-lend while many localities have not met the condition of disbursement of re-lent capital; a number of projects asking for increased total investment; Some projects have expired according to the decision of the Prime Minister but have not been disbursed at all; Some projects are disbursed slowly due to governing agencies’ late assignment of capital plan.