By the end of January 2023, total remaining public investment is more than VND104 trillion, accounting for 14.8% of the target assigned by the Government. Photo: Internet.

Over VND104 trillion has not been allocated

The total public investment capital for 2023 is over VND756 trillion, of which, domestic capital accounts for more than VND727 trillion and foreign capital VND29 trillion, reported the Ministry of Finance.

By January 31, 2023, more than VND638 trillion has been allocated, reaching 90.32% of the target assigned by the Prime Minister (more than VND707 trillion).

Thus, the total unallocated capital is more than VND104 trillion, accounting for 14.80% of the plan assigned by the Prime Minister.

Specifically, the unallocated capital of ministries and central agencies is more than VND 22 trillion, accounting for nearly 12% of the plan. The amount of unallocated capital of local agencies is nearly VND 82 trillion, nearly 16% of the plan.

The report also states that, for allocation of central budget capital (excluding capital for the national target programs), 14 of 33 ministries, central agencies and 40 of 63 provinces and centrally-run cities have not fully allocated the capital assigned by the Prime Minister. Notably, some ministries, and central and local agencies have a relatively high proportion of unallocated capital such as Hai Phong (100%), Ninh Binh (100%) and the Office of the Party Central Committee (80.2%).

Many problems in capital allocation

The Ministry of Finance said the failure of allocation of domestic capital source is mainly because the projects have not yet met the investment procedures, including projects under the Socio-Economic Development and Recovery Program; and foreign capital has not been allocated because procedures for signing a loan agreement have not been completed, loan agreements with donors have not been signed or consulting donors to complete the procedure for using excess capital has not finished.

As for the local budget balance, 32 of 63 localities assigned the capital plan from the local budget higher than the plan assigned by the Prime Minister. However, 18 of 63 cities and provinces still have not fully allocated the capital plan from the local budget. It is because some cities and provinces just assigned the capital plan for the first phase, and some projects have not completed investment procedures or have not fully allocated investment capital from the land use revenue and overspending source of the local budget.

As for the capital plan for the National Target Program, by the end of January 2023, the Ministry of Finance had received reports on capital allocation of 39 of 48 cities and provinces. Currently, 16 of 39 localities have allocated detailed capital to projects (nine of 16 localities have not fully allocated the capital plan), 23 of 39 localities have only allocated capital to subordinate units (of which, eight of 23 localities have not fully allocated capital plan).

According to the Ministry of Finance, through the inspection and review of the capital allocation of ministries, central and local agencies, the Ministry of Finance identified some outstanding problems such as capital allocation made for a number of ineligible projects (new construction projects without investment decisions; pre-investment projects without approved investment preparation estimates; capital allocation from the Socio-Economic Development and Recovery Program for a number of projects that are not on the list of projects using funds from the Socio-Economic Development and Recovery Program, etc.).

The Ministry of Finance has sent a document to ministries, and central and local agencies, requesting to adjust the detailed allocation plan in accordance with regulations as a basis for making estimates and controlling payments for projects.