Ministry of Finance requires localities to disburse public investment capital promptly. Photo: Thuy Linh

Accordingly, implementing the direction of the Prime Minister in Document No. 963/TTg-KTTH dated October 15, 2022, on assigning working groups to inspect and urge disbursement of public investment capital in 2022 in some ministries, agencies and localities. The Minister of Finance is the leader of the 6th Mission to inspect 6 localities (Ha Giang, Cao Bang, Bac Kan, Dien Bien, Lai Chau, and Binh Duong).

On November 28, 2022, the Ministry of Finance sent an official dispatch to localities to inspect, urge and remove difficulties and obstacles to accelerate the disbursement of the public investment capital plan according to Official dispatch No. 963/TTg-KTTH of Prime Minister and issued Official Dispatch No. 12441/BTC-DT dated November 28, 2022, to report to the Prime Minister on the inspection results.

According to the reports of localities and the State Treasury, the average disbursement rate of the provinces examined in October was 35%; in November increased to 43% (of which the local budget is 53.4%, central budget capital is 43.1%, estimated disbursement in 13 months (January 31, 2023) of these two sources is from 95% to 100%). For the National Target Program assigned by the centre in May 2022, the disbursement rate in October was 1.2%; in November, it also increased to 10.7% of the plan (this capital is allowed to extend the time limit of the implementation and disbursement period until the end of December 31, 2023, according to Resolution No. 69/2022/QH15 of the National Assembly).

Thus, after the official dispatch of the Ministry of Finance to the localities, the disbursement of public investment capital has had a positive change. Lai Chau province has the greatest change; disbursement increased by 13.1% (October was 40.1%, and November increased to 53.9%); Binh Duong province changed the lowest among the 5 provinces, reaching only 5.1%, but still lower than the national average of 58.48%.

According to the Ministry of Finance, a detailed examination of the central budget disbursement report shows that all 6 localities have undisbursed projects or very low disbursed capital (below the average of other localities, which is 40%). Specifically: Ha Giang province has 20 projects, Cao Bang province 6 projects, Bac Kan province 6 projects, Lai Chau province has 4 projects, Dien Bien 9 projects, and Binh Duong province has 1 project.

According to regulations, the deadline for payment of public investment capital in 2022 through the State Treasury is only 1 month. However, the undisbursed capital of these 6 localities is still very large (excluding the capital of 3 National Target Programs, which are allowed to extend the deadline of the implementation and disbursement until the end of December 31, 2023, according to Resolution No. 69/2022/QH15 of the National Assembly), about VND 11,986,502 billion (of which, the local budget capital is VND 5,843,035 billion and central budget capital is VND 6,143,467 billion).

This is a very heavy task, requiring local authorities to consider implementing and disbursement of investment capital according to the assigned plan as a key political task, focusing on directing and continuing to overcome shortcomings. Limitations created greater changes in the disbursement of public investment capital in 2022.

The Ministry of Finance said that by the end of January 31, 2023, the projects that could not disburse all the assigned capital in the 2022 plan and was not allowed to extend the deadline according to regulations are proposed to cancel estimate and reimburse the central budget.