Ensure savings and prevent losses in disbursement of public investment


Public investment - Expectations from key transportation projectsPublic investment – Expectations from key transportation projects
Public investment disbursement needs to be accelerated to boost growth: insidersPublic investment disbursement needs to be accelerated to boost growth: insiders
Ensure savings and prevent losses in disbursement of public investment
The Ministry of Finance strengthens supervision, assessment and inspection during the implementation of public investment projects. Illustrative photo: Internet

Individualizing responsibilities of the leader

Currently, the disbursement rate of public investment has changed positively, bringing a large investment to the economy for the growth and development. In addition, ensuring the quality of works and projects, using public investment economically and effectively, preventing loss or waste of state budget… are always paid attention.

Therefore, the Ministry of Finance determines that the allocation and disbursement of public investment are key tasks in the practice of thrift and combating waste in 2024. Accordingly, the ministry’s plan assigns target for allocating public investment in 2024 to meet requirements of provisions of the Law on Public Investment, resolutions of the National Assembly, resolution of the National Assembly Standing Committee; and implements full payment of outstanding construction investment debt in accordance with the provisions of law.

According to the Ministry of Finance’s report, as of the end of March, the total unallocated investment is VND25,654.7 billion, accounting for 3.9% of the target assigned by the Prime Minister.

Reasons for this issue are that the investment for new construction projects but investment procedures have not been completed; projects are allowed to extend the time for capital allocation to implement and complete.

The Ministry also sets targets for collecting the whole remaining advance capital in the Medium-term Public Investment Plan for 2021-2025; allocating sufficient capital for projects that have been completed and put into use before 2024…

The Ministry of Finance also tightens public investment discipline, strictly handle violations and obstacles that slow down investment assignment and allocation; individualizes the responsibility of the leader in case of slow implementation and disbursement associated with assessing the level of completion of assigned tasks…

Promoting digitization, information transparency and strengthening supervision

To effectively implement the targets, the Ministry of Finance has provided solution groups. Accordingly, during the implementation of public investment projects and disbursement of public investment, units need to promptly report to competent authorities on documents and regulations that are still obstacles in the reality for handling.

The Ministry of Finance requires units to improve the quality of investment project preparation, select experienced, qualified and potential consultants to minimize the adjustment of ongoing projects, causing the loss of time and slow investment disbursement. The ministry also requests units to promote the digitalization of the process of allocating public investment, make estimates, implement accounting and implement finalization of public budget, control public investment; modernize management for public investment such as connecting information, programs, reporting, and sharing data between relevant agencies.

The Ministry of Finance said it will publicize information and promote supervision, assessment and inspection during the implementation of public investment projects, remove difficulties and obstacles for projects to boost capital disbursement, ensure quality and progress of projects, and prevent waste and loss. The ministry will propose the competent authority to adjust and transfer capital plans of projects and works that are not implemented on schedule for projects and works that have fast implementation progress but still lack capital.

The Ministry will focus on arranging capital plans for urgent projects; strictly handle investors, project management boards, organizations and individuals who intentionally cause difficulties, hinder or slow down the assignment and allocation of public investment; promptly replace officers who do not meet requirements on qualification and have negative behaviors handle violations in public investment management.

Units and investors under the Ministry of Finance must prepare well and select projects that have completed construction investment procedures so that when the capital plan is allocated, the project can be implemented; encourage and create conditions for design and construction solutions that apply advanced technology, save energy and limit emissions, contributing to sustainable development and environmental protection… The Ministry of Finance also directs units apply appropriate bidding methods; focus on directing and immediately handling projects that use public capital for wasteful and ineffective investment, and handle responsibilities of relevant organizations and individuals.

According to the annual report on Vietnam’s economy and trade published by the University of Commerce, experts have recommended that to support economic growth, it is necessary to strictly manage state budget expenditures and strengthen savings, improve the efficiency of management, allocation and use of state budget; restructure public investment spending; arrange resources on important and urgent tasks and national projects…, thereby striving to achieve higher public investment disbursement than the previous year, and minimizing resource transfer.

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