Proposal to allocate reserve budget to support localities in implementing key projects

On the morning of May 29, the National Assembly listened to the Government's Report and the Verification Report on the allocation and use of the reserve fund for the Medium-Term Public Investment Plan for the period 2016-2020. Authorized by the Prime Minister, Minister of Planning and Investment Nguyen Chi Dung presented the Report on the allocation and use of the reserve fund for the Medium-Term Public Investment Plan for the period 2016-2020.

According to the Government's report at the 6th session, the total planned capital for investment from the central budget allocated annually during the entire period for implementation and disbursement is estimated at VND 964,950 billion, equal to 86.16% of the total planned central budget capital in the medium-term plan (VND 1,120,000 billion, including general reserves).

To address the shortfall (VND 155,050 billion), the Government directed ministries, branches and localities to boost budget collection; proactively review, arrange and reasonably adjust medium-term and annual plans and project implementation progress of their units; prioritize additional investment from annual central budget reserve sources, increase revenue, save expenditure (if any)... for implementation. In case of insufficient compensation, the remaining amount will continue to be balanced in the medium-term public investment plan for the period 2021-2025 to ensure the continuity of public investment.

The Government also directed ministries, branches and localities to review the central budget investment plan for 2019 and 2020, transfer planned capital between projects, develop reasonable allocation plans to improve capital use efficiency, and create resources to implement projects using common reserve funds when completing investment procedures according to regulations.

Regarding the balance between increasing the medium-term investment plan of ODA capital to 60,000 billion VND and correspondingly reducing the medium-term investment plan of Government bond capital according to the mid-term assessment report, the total estimated Government bond capital implemented for the entire 5-year period is about 196,760 billion VND, accordingly, the amount of Government bond capital not expected to be fully implemented in the medium-term plan is about 63,240 billion VND, higher than the ODA capital that the National Assembly has allowed to supplement in Resolution No. 71/2018/QH14.

In addition to adjusting right from the stage of annual capital planning between these two capital sources, the Government will direct ministries, branches, and localities, especially units using a lot of government bond capital, to review the implementation and disbursement capacity of large projects to make appropriate adjustments. Thus, ensuring sufficient ODA capital according to the plan is feasible and does not affect the use of the general reserve source of the medium-term plan for the period 2016-2020.

Therefore, the Government proposes to submit to the National Assembly for consideration and resolution to assign the Government to review and complete the plan for allocating the general reserve fund for the medium-term plan for the period 2016-2020; notify the allocation plan and request relevant ministries, branches and localities to complete investment procedures for projects in accordance with regulations; promptly deploy the synthesis and assign additional medium-term public investment plans for projects in accordance with regulations; balance resources within the state budget estimates for development investment in 2020 and other sources such as increased revenue, expenditure savings... to arrange for project implementation; synthesize and report to the National Assembly for supervision. For projects that do not have time to complete investment procedures for implementation in 2020, there will be conditions for early implementation in the first year of the new medium-term planning cycle and the following years.

According to the Audit Report of the National Assembly's Finance and Budget Committee on the allocation of the remaining domestic central budget reserve and VND 10,000 billion from the source of adjusting the reduction of the planned capital source allocated to important national projects of the Medium-term Public Investment Plan for the period 2016-2020, the majority of opinions in the Finance and Budget Committee believe that it is possible to agree with the Government's proposal to proactively review, arrange and adjust the medium-term and annual public investment plan, in accordance with the progress of project implementation and use increased revenue and expenditure savings (if any) to supplement additional sources to compensate for the lack of capital balance capacity.

Because the remaining time of the Medium-term Public Investment Plan is not much, the need for additional capital is very large, while determining the source to compensate for the lack of capital balance capacity depends on the actual source of increased revenue and specific adjustments to the Medium-term Public Investment Plan, the majority of opinions in the Finance and Budget Committee recommended that the National Assembly assign the Government to review and complete the plan for allocating the general reserve capital of the Medium-term Public Investment Plan, decide on the list and take responsibility for the allocation on the principle of ensuring annual capital balance, arranging in the 2020 state budget estimate, not leaving outstanding debts for basic construction, ensuring efficiency, in accordance with the provisions of the Law on Public Investment, the Law on State Budget, Resolutions of the National Assembly, documents of the National Assembly Standing Committee, opinions of the Finance and Budget Committee in the inspection reports, reporting to the National Assembly on the implementation results at the 10th session.

Delegates from Nghe An attend the meeting. Photo: VNA

Discussing in the Group on the allocation and use of reserve funds for the Medium-term Public Investment Plan for the period 2016-2020, delegates from Nghe An delegation proposed that the National Assembly and the Government allocate the general reserve funds of the Central budget to support the province in early implementation of: key transport projects; urgent cultural and social projects; agricultural and climate change projects.