Hanoi State Treasury: Shortening spending control time and boosting public investment disbursement

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The Hanoi State Treasury urges investors to quickly submit applications for payment. Photo: Internet

Public investment disbursement moves at snail’s pace

To date, nearly VND 12 trillion worth of disbursed capital from 2021 public investment or more than 22% of the plan (VND 54.192 billion) was reported by Hanoi State Treasury.

This rate is 1.9% below the year-on-year rate (2020 it was 24%) and the country’s average rate (more than 36%)

Hanoi State Treasury said it has closely monitored the 2021 public investment disbursement of each project, especially key and large projects and works and reported to the competent authority on projects which have not disbursed or saw low disbursement rates, as well as understood difficulties of investors and project management boards to introduce solutions.

Hanoi State Treasury has always urged investors to submit applications for payments to the State Treasury as acceptance of work is available to avoid cumulative payments at the year-end, both putting pressure on treasuries and lessening capital efficiency.

The low disbursement rate resulted from different causes. According to Hanoi State Treasury, the biggest cause was the increasingly complicated developments of Covid-19 pandemic. From the beginning of the year, Hanoi has faced two outbreaks and the implementation of Directive 16 has had an adverse impact on constructions in the city.

In addition, there are many new constructions projects and bidding packages, so investors and project management boards are still in the bidding and contract negotiation process and have not submitted applications for advance payments to the State Treasury yet.

Shortening spending time

Though Hanoi State Treasury set a desired target for achieving disbursement sourced from 2021 public investment at the highest level, the complex developments of the Covid-19 pandemic and ongoing social distancing in Hanoi is likely to have big impacts on disbursement progress.

To minimise these impacts, Hanoi State Treasury is shortening spending control time.

Moreover, the treasury is strengthening online transactions to ensure the accuracy and security of payment and comply with the Government’s policy.

Remove obstacles in disbursement of public investment

In the short-run, the treasury will work with authorities, People’s Committees of districts, and communes, investors, project management boards to boost the disbursement rate, solve problems and guide investors to quickly submit applications for payments to the treasury.