The allocation of public investment in 2021 still faces many shortcomings that need to be removed, requiring drastic direction from the Government as well as the performance of ministries, branches and localities. Thereby, it will not affect the disbursement of public investment in the near future.

In 2021, the total public investment from the state budget in 2021
is more than VND580 trillion. Photo: Internet

 Over VND70,000 billion of public investment has not yet been allocated

The total public investment from the State budget in 2021 is more than VND580 trillion (including VND16 trillion of capital for the national target program that has not been assigned by the Prime Minister).

According to the report from the Ministry of Finance, currently the total allocated capital is more than VND438.1 trillion, reaching 94.98% of the capital plan assigned by the Prime Minister. The remaining capital that has not been allocated by ministries, central agencies and localities is VND70.1 trillion, accounting for 15.2% of the plan assigned by the Prime Minister.

According to the Ministry of Finance, for the central budget capital, among the ministries, central agencies and localities that have submitted the report on the allocation of the capital plan in 2021, 34 ministries and 38 localities have not yet allocated all capital. Notably, a number of ministries, central agencies and localities have a high proportion of unallocated capital, such as the Ministry of Information and Communications (94.77%), Management Board of Hoa Lac High-Tech Park (88%), Management Board of Vietnam National Village for Ethnic Culture and Tourism (85.21%), Ho Chi Minh National Academy of Politics (82.16%), Vietnam General Confederation of Labor (77.13%), Lam Dong province (100%), Phu Tho province (84.3%), Hung Yen province (56.35%), Bac Ninh province (53.06%) and Tay Ninh province (51.71%) .

The Ministry of Finance explained that the reason the central budget plan has not been fully allocated is that the ministries, central agencies and localities have just assigned the first-phase capital plan. The remaining capital has not yet been allocated for projects ineligible for the allocation of the public investment plan from the state budget in 2021 according to Decision No. 2185 / QD-TTg dated December 21, 2020 of the Prime Minister, as the new projects are not included in the medium-term public investment plan for 2021-2025. Along with that, capital has not disbursed for projects that are beyond deadline; planning projects and tasks that do not have sufficient procedures; and ODA projects that have not been signed or are being adjusted.

Particularly, for the local budget balance, 38 of 63 localities have capital plans higher than the capital plans assigned by the Prime Minister from the local revenues gained by collecting fees, increased income and lotteries. However, 18 of 63 localities that have not yet allocated all plans for the local budget balance such as: Bac Ninh province (71.89%), Quang Binh province (63.18%), and Soc Trang province (52.82%), according to report from the Ministry of Finance.

Shortcomings need to be removed

The allocation of public investment to ministries and branches always includes some problems. Specifically, the allocation of capital does not meet the deadline according to regulations.

Accordingly, the ministries, central agencies and localities will allocate detailed capital plan from the central budget for the next year, and allocate capital to each project for subordinate agencies, units and People's Committees before December 31 every year. However, some localities have allocated capital plans slowly, such as Ha Nam, Ca Mau, Ninh Binh, Gia Lai and Tay Ninh, or have failed to allocate capital by sectors and fields such as Ninh Thuan, Bac Ninh, Phu Tho, Ba Ria Vung Tau and Thai Nguyen. Also, the province has allocated more capital in the total investment allocated by the Central budget for projects such as four in Lang Son province.

In addition, the allocation for new projects is not included in the medium-term public investment plan for 2016-2020; the allocation does not comply with provisions of the Law on Public Investment and is not subject to projects completed in 2021 as stated in Decision 2185/QD-TT; the recovery of advance capital of a number of projects is different from the data monitored by the Ministry of Finance.

In addition, the allocation of some ODA projects is not consistent with the approved allocation/re-lending ratio; the project has not been allocated the re-lending capital from the local budget.

Facing this situation, the Ministry of Finance has proposed the Government and the Prime Minister direct ministries, branches and localities to urgently complete the detailed allocation of the plan for public investment in 2021 and enter the capital plan on the Treasury and Budget Management Information System (TABMIS).

The Ministry of Finance also requested the Ministry of Planning and Investment to review the remaining capital for 2021 that has not yet been allocated by ministries, central and local agencies to report to the Prime Minister for consideration and decision. Ministries, branches and localities also need to urgently complete the recovery of advance capital, implement payment of outstanding debts in capital construction investment of projects planned in 2021, and implement the project immediately after receiving the notification on the investment plan.