Delivered 26,000 billion VND to 5 provinces but only disbursed 5,000 billion VND

At the meeting, Finance Minister Ho Duc Phuc said that the Prime Minister assigned the public investment capital plan in 2022 to 5 provinces with a total capital of more than 26,000 billion VND. According to the report, by May 4, 2022, localities have disbursed more than 5,000 billion VND, reaching 19% of the plan assigned by the Prime Minister.

The disbursement rate in localities is still too low compared to the requirements, not to mention the newly allocated national target program capital, the state budget capital and the demand stimulus package, the minister said.

The Minister emphasized, in the current conditions, when Vietnam is recovering from the Covid-19 pandemic, increasing public investment, focusing on building infrastructure, and attracting foreign investment capital. … will be the central solution. Therefore, it is necessary to focus on removing difficulties in order to speed up the disbursement progress and promote projects to quickly hand over and put into use. The faster the disbursement, the faster the economic recovery, ensuring GDP growth and creating jobs, increasing state budget revenue…

According to localities, the reason for the difficulty in disbursement of public investment capital of the provinces is due to slow site clearance; It takes a long time to approve construction design drawings. Moreover, there are objective reasons such as the increase in raw material prices, the early rainy season, which has affected the construction progress of the projects.

The localities proposed to extend the time for implementation and disbursement of the domestic central budget capital assigned to the plan from 2021 to 2022; soon announce the 2021-2025 medium-term capital plan and the 2022 plan for the national target programs to promptly prepare procedures, disburse the assigned capital plan and soon have a circular guiding the implementation of the Program national goal.

Local also recommended soon have instructions to handle the increase in prices of raw materials and materials so that the locality has a basis to adjust projects…

According to the Ministry of Planning and Investment, the reality shows that the disbursement of public investment capital in localities is still limited. Although many provinces have implemented decentralization, implementation has not been coupled with capacity building. Many projects are implemented slowly due to confusion in implementation. Or the capacity of some investors as well as contractors is still weak, the financial capacity is low, so they cannot meet the input factors, causing the construction work to be delayed.

Minister of Finance Ho Duc Phuc already requesting localities to drastically implement the directives of the Government and the Prime Minister. At the same time, focus on removing difficulties and completing procedures; remove obstacles on site clearance; urge fast construction, arrange sufficient capital to advance payment; review and adjust capital for projects with fast disbursement progress to promote early efficiency.

The Minister proposed the Provincial People’s Committee assign a vice president in charge of full-time to be the head of the local steering committee on disbursement of public investment capital; need close attention, responsibility, especially the responsibility of the head.