Minister: slow public capital disbursement could cause loss of economic opportunities

Minister of Planning and Investment Nguyen Chi Dung. (Photo: VNA)

Hanoi – Minister of Planning and Investment Nguyen Chi Dung has said low disbursement of public investment capital amid the COVID-19 pandemic could waste resources and result in the loss of opportunities to create a driving force for economic development.

As of late July, ministries, centrally-run agencies and localities had allocated over 398.6 billion VND for qualified projects, while more than 62.6 trillion VND have yet to be allocated, or 13.6 percent of the plan assigned by the PM.

As of July 31, public investment capital disbursement reached 36.71 percent of the yearly plan, or 3.96 percentage points lower than the rate recorded in the same period last year. The rate of disbursement of official development assistance (ODA) and preferential loans of foreign sponsors was just 7.52 percent.

Deputy Minister of Planning and Investment Tran Quoc Phuong said one of the reasons for the slow disbursement was the late allocation of State capital in ministries, agencies and localities this year, especially to national target programmes.

At the same time, there is a lack of punishment mechanism for units that lag behind in allocating State budget. Besides, the delay in dealing with obstacles in site clearance and resettlement in several projects also hinders the pace of disbursement.

Some ministries, agencies and localities, especially those not under social distancing order, showed a lack of political determination in the work.

PM Pham Minh Chinh on August 16 issued dispatch No.1082/CD-TTg dated August 16 on accelerating the disbursement of public investment capital.

Accordingly, he asked ministries, agencies and localities to step up disbursement in combination with ensuring the quality of works and the efficiency of capital use. He ordered strengthening discipline in disbursement and upholding the role and responsibility of leaders in the effort.

The PM also required strict punishments for investors, project management boards, individuals and organisations that intentionally cause difficulties and delay in disbursement.

Minister of Planning and Investment Nguyen Chi Dung also urged ministries, centrally-run agencies and localities to adopt measures to promote economic growth and public capital disbursement in the remaining months of 2021 and early 2022 in accordance with the Government’s Resolution No.63/NQ-CP.

The Government also requested the immediate establishment of a special working team in each ministry, agency and locality led by the top official to accelerate the work in each ministry, agency and locality.