Numerous factors behind the non-allocation of over VND 17.6 trillion in public investment capital

VCN - According to the Ministry of Finance, the failure to allocate a relatively large amount of more than VND 17.614 trillion has affected the disbursement rate of public investment capital from the state budget in the early months of 2024.
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During the allocation process, priority was given to funding for national important projects. Photo: Internet
During the allocation process, priority was given to funding for national important projects. Photo: Internet

2.65% of the public investment capital plan has not yet been allocated

According to the report from the Ministry of Finance, as of now, the total allocated capital is VND 688,921.7 billion, reaching 103.78% of the plan assigned by the Prime Minister (VND 663,806.9 billion). This includes nearly VND 224,050 billion from the central budget and VND 464,872 billion from local budgets. Of this, localities have increased their allocations by VND 42,729 billion compared to the plan assigned by the Prime Minister. Excluding the increased allocation from localities, the total allocated capital is VND 646,192.7 billion, reaching 97.35% of the plan assigned by the Prime Minister.

However, there are still 21 out of 44 ministries, central agencies, and 26 out of 63 localities that have not yet allocated or fully allocated the assigned capital plan. The total unallocated detailed capital is more than VND 17.614 trillion, accounting for 2.65% of the plan assigned by the Prime Minister, including more than VND 7.408 trillion from the central budget and nearly VND 10.206 trillion from local budget balances.

The Ministry of Finance stated that the failure to allocate a relatively large amount of capital has affected the disbursement rate of public investment capital from the state budget in the early months of 2024.

Regarding the reasons for not fully allocating the capital plan, according to the Ministry of Finance, the unallocated domestic capital is due to incomplete investment procedures, as well as the planned allocation for projects and tasks that are being compiled to be submitted to competent authorities for adjustment of the medium-term public investment plan. Additionally, it is due to the submission to the Prime Minister for permission to extend the allocation time for implementation and completion...

The detailed allocation of foreign capital is pending adjustments in investment policy, negotiation, signing of utilization agreements, and submission to the Prime Minister for supplementing the medium-term plan to assign the 2024 plan.

More than VND 1.058 trillion of the capital for national target programs has not been allocated because the projects are still being prepared and approved, so they are not yet eligible for capital allocation.

The unallocated local budget balance is due to localities leaving it for later allocation, not fully allocating investment capital from land use revenue, lottery, and local budget deficit.

Furthermore, some ministries, central agencies, and localities have allocated detailed capital for projects but are not eligible for disbursement, such as: no project approval decision, accumulated capital exceeding the medium-term public investment plan... not following the allocation principle according to regulations. ODA projects have not allocated plans according to the re-borrowing rate, allocated without signing a re-borrowing contract with the Ministry of Finance, and have not allocated the assigned re-borrowing plan, projects allocated inappropriately with the financial mechanism.

Additionally, the matching capital allocation rate from the local budget for projects with central budget support (national important projects, key projects, inter-regional projects) of many localities does not meet the progress (many localities have not allocated or allocated with a rate not meeting the progress) according to regulations.

Some ministries, central agencies, and localities have allocated capital exceeding the medium-term public investment plan, exceeding the central budget support and total investment level; or allocated capital but did not ensure the time according to regulations (VND 5,134.54 billion from the central budget allocated after December 30, 2023).

No basis yet for approving the estimate for projects allocated after December 30, 2023

Therefore, the Ministry of Finance has issued documents to check the allocation, providing detailed comments to each ministry, central agency, and locality for adjustment and completion.

According to the Ministry of Finance, the Public Investment Law, Decision No. 1603/QD-TTg on the assignment of state budget capital plans for 2024, stipulates that before December 31 each year, ministries, central agencies, and localities must detail the allocation of the next year's central budget investment plan, list, and allocation level for each project to the subordinate agencies and units, and the People's Committees at lower levels.

At point 1, Part II of Resolution 44/NQ-CP dated April 5, 2024, of the Government on the regular Government meeting in March 2024 and the online Government meeting with localities requires ministries, central agencies, and localities to urgently allocate 100% of the 2024 state budget investment capital plan assigned by the Prime Minister, report the allocation plan, and send it to the Ministry of Planning and Investment (MPI) and the Ministry of Finance in May 2024.

At Clause 3, Part II of Resolution No. 65/NQ-CP dated May 7, 2024, of the Government on the April 2024 Government meeting, the MPI is assigned to coordinate with the Ministry of Finance and relevant ministries, agencies, and localities to urgently compile and report to the Government for submission to competent authorities to adjust the reduction of the 2024 central budget investment plan corresponding to the unallocated detailed capital of ministries, central agencies, and localities by May 15, 2024 (excluding the estimated capital assigned for the implementation of the 3 national target programs, ministries, central agencies with only one project in the plan year, estimated capital for tasks and projects submitted to competent authorities for adjustment of the 2021-2025 medium-term public investment plan) to transfer, supplement for other ministries, central agencies, and localities with the need for additional capital, speeding up the implementation progress, disbursement of tasks, projects.

To avoid difficulties in implementing the allocation of the 2024 state budget investment capital plan as directed by the Government in the above Resolutions, the Ministry of Finance has sent documents to the MPI requesting guidance for ministries, central agencies, and localities. However, so far, the MPI has not given its opinion, so there is no basis for approving the estimate for projects eligible but allocated after December 30, 2023.

Given the above situation, the Ministry of Finance reports to the Prime Minister to assign the MPI to urgently provide specific guidance according to its authority or compile and report to competent authorities on the allocation of capital during the period from December 30, 2023, to May 15, 2024, and after May 15, 2024.

By Huong Diu/Tran Minh

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