Proposal for using over VND18,200 billion of public investment provision for 14 projects

Minister of Finance Ho Duc Phoc

On June 27, 2024, under the authorization of the Prime Minister, Minister of Finance Ho Duc Phoc presented the Government's Report on the use of the general provision of the Medium-term Public Investment Plan from the central budget for the period 2021-2025 corresponding to the increase in central budget revenue in 2023 for public investment projects.

The Minister said that the principles and criteria for allocating the increased central budget revenue in 2023 will focus on the following tasks: projects in the defense and security sectors; important national transport projects, construction of key expressways, transport projects that help connect regions, have a spillover effect, and contribute to the socio-economic development of localities; projects to implement the Judicial Reform Strategy under the Resolution of the Politburo.

Accordingly, the total amount of VND 26,900 billion from the increased central budget revenue in 2023 is expected to be allocated to 20 projects in 4 sectors: Defense: VND 2,000 billion; Security: VND 4,000 billion; Transport: VND19,380 billion; Judicial reform: VND 1,520 billion.

Of these, VND 8,680 billion is expected to be allocated from the increased central budget revenue in 2023 for 6 projects of the Ministry of Transport that have been assigned the medium-term public investment plan for the period of 2021-2025, ensuring full investment procedures. This content has been reported by the Government to the Standing Committee of the National Assembly according to its authority.

The remaining VND 18,220 billion is under the decision-making authority of the National Assembly and is expected to be allocated from the increased central budget revenue in 2023 for 14 projects (if the Tuyen Quang - Ha Giang Expressway Phase 1 project is assigned to 2 localities for implementation, the total number is 15 projects) that need to be reported to the National Assembly to supplement the limit of the Medium-term Public Investment Plan from 2021 to 2025 from the general provision corresponding to the increased central budget revenue in 2023.

Accordingly, VND 13,700 billion will be allocated to projects to ensure sufficient capital for the approval of investment policies and adjustments following regulations, including VND 10,200 billion for 4 projects that have been included in the medium-term public investment plan for the period of 2021-2025 (expanding the scale from 2 lanes to 4 complete lanes for the Cam Lo - La Son project is VND 7,000 billion; Tuyen Quang - Ha Giang Expressway Phase 1, section through Ha Giang province is VND1,500 billion; construction of the National Data Center No. 1 of the Ministry of Public Security is VND1,500 billion; Nguyen Hoang Road and Huong River Overpass project in Thua Thien Hue province is VND200 billion);

Furthermore, VND3,500 billion would be spent for 7 newly started projects, projects not included in the medium-term public investment plan (5 projects of the Ministry of Defense to implement the task according to Resolution No. 05-NQ/TW of the Politburo, handling of mines and explosives is VND 2,000 billion; 2 projects of the Ministry of Public Security Headquarters to implement Resolution No. 12-NQ/TW of the Politburo is VND 1,500 billion).

The remaining VND 4,520 billion will be allocated to 4 projects that do not yet have sufficient capital for approval or adjustment of investment policies, including VND 2,000 billion for the Tuyen Quang - Ha Giang Expressway Phase 1 project which is section through Tuyen Quang province; VND2,520 billion for 3 projects not included in the medium-term public investment plan (Gia Binh airport project of the Ministry of Public Security to implement Resolution No.12-NQ/TW of the Politburo is VND 1,000 billion; 2 projects of the Supreme People's Court to invest in the repair, renovation, upgrading and construction of courthouses at all levels to implement Resolution No. 49-NQ/TW of the Politburo (VND1,520 billion).

Therefore, the Government proposes to the National Assembly to allow the use of VND18,220 billion from the general provision of the central budget of the Medium-term Public Investment Plan from 2021 to 2025 corresponding to the increase in central budget revenue in 2023.

Overview of the meeting

In addition, the Government proposes to the National Assembly to complete the investment procedures for projects from the general provision of the central budget of the Medium-term Public Investment Plan from 2021 to 2025 corresponding to the increase in central budget revenue in 2023.

For the four projects: Gia Binh airport project, construction of the Supreme People's Court new headquarters at 262 Doi Can, project on investment in repair, renovation, upgrade and construction of courthouses at all levels (phase 1), Tuyen Quang - Ha Giang Expressway project phase 1, Tuyen Quang province section, the Government proposes to the National Assembly to allow the competent authority to decide on the investment policy for the project based on the capital source and the expected capital allocation for the project from the increased central budget revenue in 2023, the capital source from 2026 to 2030 and other legitimate capital sources (if any) to complete the investment procedures complying with regulations.

In addition, the Government proposes to the National Assembly to instruct ministries, central agencies and localities to complete the investment procedures according to their competence urgently, report to the National Assembly for consideration and decision on the allocation of the Medium-term Public Investment Plan from 2021 to 2025 to ministries, central agencies and localities when the investment procedures are completed following legal regulations; between two sessions of the National Assembly, report to the Standing Committee of the National Assembly for consideration and decision on allocation and report to the National Assembly at the nearest session.

Presenting the Examination Report, Chairman of the Finance and Budget Committee of the National Assembly Le Quang Manh said that the proposal to allow the use of VND 18,220 billion from the general provision of the medium-term public investment plan for the period of 2021-2025 is appropriate with the regulations, the list of projects attached to the Government's Report has been agreed by the competent authority on the policy.

The Finance and Budget Committee proposed that the Government be responsible for reviewing and completing investment procedures, ensuring capital allocation and balance following legal regulations; ensuring effective implementation, speeding up disbursement progress and avoiding waste.

As for projects that do not have sufficient capital to approve the investment policy, exceeding 20% of the total capital of the medium-term public investment plan of the previous period of ministries, central agencies and localities as stipulated in Clause 2 of Article 89 of the Law on Public Investment, the Finance and Budget Committee proposes that the National Assembly allow the competent authority to decide on the investment policy for the projects based on the capital source and the expected increase in central budget revenue in 2023 to be allocated to the project, the capital source for the period of 2026-2030 and other legitimate capital sources (if any). Assign the Government to ensure the capital source and the ability to balance the capital to allocate the remaining capital compared to the expected total investment of the projects under legal regulations.