Overcoming shortcomings and limitations, creating changes in public investment disbursement

On the afternoon of August 25, the Government's Working Group No. 6, headed by Comrade Ho Duc Phoc - Member of the Party Central Committee, Minister of Finance, directly inspected and worked directly and online with the leaders of the People's Committees of 4 provinces: Nghe An, Phu Yen, Khanh Hoa, Soc Trang to urge, remove difficulties and obstacles, and promote the disbursement of public investment capital in 2022.

Minister of Finance Ho Duc Phoc worked directly and online with four provinces of Nghe An, Phu Yen, Khanh Hoa, and Soc Trang on disbursement of public investment capital. Photo: mof.gov.vn

LOW DISBURSEMENT RATE OF PUBLIC INVESTMENT CAPITAL

On May 2, 2022, the Prime Minister issued Decision No. 548/QD-TTg establishing 6 Working Groups to continue to inspect, urge, remove difficulties and obstacles, and promote the disbursement of public investment capital in 2022 at 41 ministries, central agencies and 18 localities with disbursement results as of July 31, 2022 below the national average (34.47%). Working Group No. 6, headed by the Minister of Finance, inspected the following localities: Nghe An, Phu Yen, Khanh Hoa, and Soc Trang.

In 2022, the Prime Minister assigned a state budget investment plan for 4 provinces: Nghe An, Khanh Hoa, Phu Yen, Soc Trang of more than 23,294 billion VND. Of which, the local budget balance is more than 13,469 billion VND; the central budget is more than 7.86 billion VND. To date, the total capital allocated in detail to the 4 localities is more than 22,940 billion VND.

Comrade Nguyen Duc Trung - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee chaired the Nghe An bridge point. Photo: Pham Bang

According to the Ministry of Finance's synthesis, it is estimated that after 8 months, 4 localities have disbursed more than 7,239 billion VND, reaching 31.1% of the plan assigned by the Prime Minister and 31.6% of the plan implemented by localities. Specifically, Nghe An province reached 32.8%, estimated at 50.6% after 8 months; Khanh Hoa province reached 31.4%, estimated at 40.1% after 8 months; Phu Yen province reached 26.3%, estimated at 28.6% after 8 months; Soc Trang province reached 30.9%, estimated at 37.2% after 8 months.

The Ministry of Finance said that after two inspections, localities have seen changes in disbursement work. Localities all estimated that the disbursement for the whole year reached 100% of the capital plan assigned by the Prime Minister. However, in 4 localities, there are still about 125 projects that have not been disbursed or the disbursement amount is very low compared to the assigned capital plan.

At the meeting, leaders of the four provinces reported on the results of public investment disbursement and pointed out practical difficulties and problems. Leaders of central ministries and branches explained and resolved difficulties in the process of implementing public investment disbursement in 2022.

Standing Vice Chairman of Nghe An Provincial People's Committee Le Hong Vinh reported on disbursement results and some difficulties and problems of Nghe An province. Photo: Pham Bang

Speaking at the meeting, Permanent Vice Chairman of Nghe An Provincial People's Committee Le Hong Vinh said that the total public investment plan for 2022 assigned by the Prime Minister to Nghe An province is more than 10,685 billion VND. As of August 25, the province's public investment disbursement rate reached 35.72% of the plan, if not counting the newly assigned National Target Program, the disbursement rate reached more than 40% of the plan.

According to comrade Le Hong Vinh, the reason for the slow disbursement of public investment capital is that many new projects have started construction, so the investment procedures, appraisal, site clearance, etc. take a lot of time. The sudden increase in construction material prices has led to the estimated budget exceeding the approved total investment, leading to slow investment adjustments. In addition, the market land price is higher than the land price recovered by the State, so some people have not agreed... However, Nghe An is determined to disburse 100% of public investment capital in 2022.

PROACTIVELY OVERCOME PROBLEMS AND LIMITATIONS

Concluding the meeting, Minister of Finance Ho Duc Phoc emphasized that disbursement of public investment capital not only contributes to promoting growth but also helps to control inflation. Therefore, the Prime Minister requested that disbursement of public investment capital be considered a key political task. If the task of disbursing public investment capital is not completed, the head must be reviewed and the capital plan must be transferred.

Based on the difficulties in policy mechanisms of ministries, branches and localities, the Minister of Finance said that the Government and the Prime Minister are assigning ministries to review and propose amendments and supplements to a number of policy mechanisms directly related to the implementation of investment projects, including public investment projects.

Minister of Finance Ho Duc Phoc concluded the inspection and working session. Photo: mof.gov.vn

Therefore, the Minister of Finance requested the Chairmen of the Provincial People's Committees to direct investors, project management boards, and specialized departments to review problems related to policies that directly affect the organization and implementation of public investment projects, causing bottlenecks in disbursement; propose amendment solutions to send to relevant ministries and branches for research and synthesis to submit to competent authorities for decision to amend and supplement appropriate policy mechanisms.

Emphasizing that the time to implement public investment in 2022 is only 4 months and the time to disburse capital is 5 months, the Minister of Finance said that the requirement to disburse 100% of the assigned planned capital is a very heavy task, especially for national target programs.

Leaders of departments, branches and sectors attended the working session. Photo: Pham Bang

Therefore, the four localities need to focus on directing and implementing solutions, overcoming shortcomings and limitations, creating strong changes in disbursement of public investment capital in the last months of the year; assigning leaders to be in charge of each project, proactively participating and answering, guiding the handling and removing obstacles and difficulties in a timely and effective manner.

The head must directly direct the removal of related difficulties and problems and be responsible for explaining the disbursement results; strengthen field inspection work to promptly rectify and resolve difficulties and problems; the project management board and contractors must have an overall and detailed schedule and commit to the project implementation progress.

At the same time, resolutely cut capital for projects that are unable to disburse capital, especially projects that have been allocated capital in the 2022 plan but have not yet disbursed capital to arrange for projects that have been settled, completed projects that still lack capital, projects with good disbursement progress, in accordance with legal regulations.

Comrade Nguyen Duc Trung - Chairman of the Provincial People's Committee inspected the progress of the coastal road project. Photo: Pham Bang

On the other hand, the Minister of Finance said that it is necessary to increase online payments on the national public service portal to be proactive and save time and costs.

Publish prices and price indexes of materials monthly, in line with market developments, creating conditions for determining the correct costs for public investment in accordance with the guidance of the Ministry of Construction. Improve capacity and responsibility for performing public duties, attach responsibility and evaluate the level of work completion with the progress of project disbursement./.