Localities propose to remove bottlenecks in disbursement of public investment


Localities propose to remove bottlenecks in disbursement of public investment
Disbursement of public investment is the driving force of economic growth in 2023. Photo: Internet

Decentralizing powers to localities

In 2022, Ho Chi Minh City was allocated a capital of VND54,000 billion, but the City’s balancing capacity was VND37,000 billion. As of January 31, 2023, the City disbursed VND26,636 billion, meeting 71.3% of the target. Although the City did not achieve the target of 95%, it saw a year-on-year increase of 35% to VND6,900 billion.

In 2023, the City is allocated VND70,000 billion, including VND16,500billion of the central government capital and VND55,200 billion of the local government capital.

According to the HCM City People’s Committee Chairman Phan Van Mai, the City has allocated 100% of central and local capital and VND26,000 billion for unfinished projects. Currently, projects are eligible for allocating capital worth VND14,000 billion and four remaining projects are valued at VND12,000 billion. The City will urgently complete and allocate 100% of the local capital at the end of March.

The city government held a conference to review the results of investment disbursement in 2022 and orientation in 2023, determined the responsibilities of the investor and the Department of Planning and Investment, raised difficulties and shortcomings, especially procedures for coordinating with other sectors, procedures for site clearance. As a result, the City determined that project site clearance will be implemented in the first half of this year.

The City has also improved working teams, including teams of site clearance, teams of large capital projects, ODA teams, documents, regulations, action plans and specific directions for each project.

In 2023, Hanoi City has allocated nearly VND47,000 billion of public investment and assigned main tasks. The City also inspected the public investment, inspected the results in 2022 and prepared for 2023. As a result, by the end of February 2023, Hanoi disbursed over VND3,600 billion, meeting 5.5% of the plan.

“In terms of difficulties and obstacles, there are many technical difficulties, project processes and decentralization. Therefore, we hope that if the law is not revised, the decrees of the Government and the National Assembly will be issued to decentralize powers to localities. Therefore, it is proposed that the Prime Minister review and decentralize power to localities to reduce obstacles,” said the Hanoi People’s Committee Chairman, Tran Sy Thanh.

According to the Chairman of the Hanoi People’s Committee, not only Hanoi but also other provinces and cities face problems related to capital for investors’ approval. In this term, Hanoi is allocated VND250,000 billion of public investment capital. However, for the capital, the City only allocates capital for 5-7 projects and performs at least two terms. This affects the allocation of public investment that the People’s Council cannot remove, so it is hoped that the Prime Minister will pay attention and direction to resolve the problem.

Ministries and sectors must actively remove obstacles

Minister of Finance Ho Duc Phoc said these problems are under our power and we can resolve them.

“Accordingly, there are two problems, including the preparation and implementation of the investment. “For example, for investment preparation, the current regulations say that the investment project is only made when the capital is allocated. When the capital is allocated, the project is made and the capital disbursement is implemented after two years. To remove these bottlenecks, the Ministry of Finance proposes to use recurrent expenditure to make projects necessary. When the investment is allocated, the implementation will not face shortcomings. But now the capital allocation is implemented first and then making the project, so it will see obstacles,” the Minister said.

Minister of Finance Ho Duc Phoc said competent agencies must actively remove problems. In addition, they must promote decentralization; promptly adjust unit prices to be consistent with reality to ensure the sustainable quality of work.

Regarding the compensation for site clearance, the Minister said that the provincial government will approve the unit price, establish compensation councils, and adopt compensation plans. Therefore, the work is not difficult.

Minister of Health Dao Hong Lan, the Ministry has focused on implementing solutions to strengthen promotion and adjustment for projects and support slow projects. Especially the ministry has executed key projects to expedite the disbursement of public investment capital.


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