State budget disbursement reaches nearly 83% of the plan

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The rate of the State budget disbursement of Ministries is higher than the rate of localities.

Regarding Government bonds, the capital which has been allocated is nearly 47,493 billion vnd, reaching 79.1% of the plan. In which, the Ministries are allocated 23,091 billion vnd and the localities are allocated 24,401 billion vnd.

In 2016, the Investment Department under the Ministry of Finance collaborated with the Ministries and the State Treasury to handle and update information about the capital plan in TABMIS system; check disbursement of State budget which has not yet recovered from localities; and report the Prime Minister about the impact of the policies and mechanisms related to the schedule of disbursement.

As a result, the State budget which has been disbursed in 12 months of 2016 is 209,094 billion vnd, reaching 82.9% of the plan assigned by the Prime Minister. The rate of the State budget disbursement of Ministries has reached 83.5%, higher than the rate of localities with 82%.

Government bonds in the 12 months of 2016 have reached 31,800 billion vnd, reaching 67% of the plan, with the Central agencies reaching 54% of the plan and local agencies reaching 79% of the plan.

Regarding the disbursement of capital, Mr. Le Tuan Anh - the Deputy Director of Investment Department under the Ministry of Finance said: “During implementation of Government Resolution No. 60/NQ-CP on the tasks and key measures to accelerate disbursement of public investment in 2016, the Ministries, branches and localities have promptly urged and directed investors to focus on implementation and funding payment. Therefore, the rate of disbursement to the end of 2016 has had a more positive progress, but this figure is still lower than the same period of 2015.

Analyzing the above figure, Mr. Tuan Anh said: The problems and inconsistencies of legal documents guiding the Law make relevant units find it difficult in the implementation, directly affecting the accomplishment of administrative procedures for projects, especially newly started projects.

Besides, according to the National Target Program, in August 2016 and September 2016, there were only two programs approved by the Prime Minister for disbursement but the State lacked specific regulations and instructions, which caused difficulties for many localities to complete the procedures.

In addition, the allocation of foreign capital for projects has been inappropriate. Accordingly, many projects have been allocated a large amount of money but delay, while some effective projects having the ability to make payment have not been allocated budget.

The operations of investors also remain some outstanding problems such as: The accomplishment of administrative procedures for investment projects has been quite slow; the bidding, construction and payment of projects have been also behind schedule; and the problems in land clearance compensation have not been settled properly.

Allocation of the State Budget estimates in 2017 VCN – The Prime Minister has signed Decision 2309/QD-TTg assigning State budget estimates in 2017.

In the coming time, the Ministry of Finance will continue to review and propose mechanisms and policies in accordance with its functions and duties as well as assessing the impact and efficiency of these mechanisms and policies. Also, the Ministry of Finance will collaborate with relevant Ministries and agencies to review, amend and supplement policies and regulations to remove obstacles in the allocation and disbursement of the State budget.