The National Assembly passed a resolution adjusting the medium-term public investment plan for 2016-2020.

Vice Chairman of the National Assembly Phung Quoc Hien chaired the meeting. Photo: Quochoi.vn

Chairman of the National Assembly's Finance and Budget Committee Nguyen Duc Hai presents a report to the National Assembly. Photo: Quochoi.vn

Based on Resolution No. 26/2016/QH14 of the National Assembly on the Medium-term Public Investment Plan for the 2016-2020 period, to ensure budget balance and national financial security, and to absorb the opinions of National Assembly deputies, the National Assembly Standing Committee directed the development and completion of the Draft Resolution adjusting the Medium-term Public Investment Plan for the 2016-2020 period.

Accordingly, the use of general reserve funds must be ensured within the public investment ceiling, maintaining the deficit ratio and public debt safety index, consistent with the annual state budget's ability to balance investment capital; stipulating principles and priority order for using general reserve funds in the direction of focusing on projects already in the medium-term public investment portfolio for the period 2016 - 2020 that are under-implemented or lacking capital to meet investment progress, complete and put into use, avoiding waste and dispersion in investment.

The Standing Committee of the National Assembly proposes that the National Assembly allow the use of general reserve funds as prescribed in the Draft Resolution to promptly supplement resources for investment on the basis of ensuring budget balance, maintaining the deficit target and public debt safety target as decided by the National Assembly.

Chairman of the National Assembly's Finance and Budget Committee Nguyen Duc Hai also said that, taking into account the opinions of National Assembly deputies, the National Assembly Standing Committee directed the development of a Resolution in the direction of submitting to the National Assembly for permission to increase the ceiling of foreign capital sources to the maximum on the principle of adjusting the domestic loan capital source accordingly; directing the completion of principles and priority order for using the general reserve capital source, focusing on allocating capital for projects already included in the medium-term public investment plan that are being implemented in progress to ensure progress, early completion, and putting into use. Paying attention to allocating capital for newly arising urgent projects, including policy beneficiaries, ethnic minorities, mountainous areas, and ensuring national defense and security.

Allocate funds from the source of capital reduction plans for important national projects to prioritize allocation for a number of projects and works to prevent, combat, and overcome the consequences of natural disasters, reinforce the weak dyke system, handle riverbank and coastal erosion, and urgently relocate residents from areas at risk of flash floods, landslides, and landslides; the remaining amount is used to pay off debts for site clearance of a number of projects that are obligations of the central budget and support site clearance of a number of urgent projects that need to be implemented immediately.

Regarding the decision on the list of projects using the common reserve fund, after conducting a vote to seek opinions from National Assembly deputies, on that basis, the National Assembly Standing Committee would like to submit to the National Assembly for approval the plan "Assigning the National Assembly Standing Committee to decide on the list and expected capital level allocated for projects using the common reserve fund of the Medium-term Public Investment Plan for the period 2016 - 2020 from the central budget and report to the National Assembly at the nearest Session."

In addition, Chairman of the National Assembly's Finance and Budget Committee Nguyen Duc Hai reported and explained a number of issues such as the allocation of capital to repay the central budget's debt for committed PPP projects; slow and multiple allocations of capital plans; and many difficulties in disbursement procedures; proposals to overcome the situation of resource allocation being spread out and not really paying attention to the efficiency of capital use; the implementation of the law on public investment not being strict enough; the issue of using retained revenue sources...

After listening to the report, the National Assembly voted to pass the Resolution adjusting the medium-term public investment plan for the 2016-2020 period with 434 delegates voting in favor, accounting for 89.48% of the total number of National Assembly delegates.

The Resolution on adjusting the medium-term public investment plan for the period 2016 - 2020 determines: Adjusting the total foreign capital of the medium-term public investment plan for the period 2016 - 2020 to the maximum level, and at the same time adjusting the corresponding reduction of domestic loans to meet disbursement requirements for projects using foreign capital; Adjusting the capital source for important national projects to be reduced; Allowing the use of the general reserve source of the medium-term public investment plan for the period 2016 - 2020 on the basis of ensuring the ability to balance the investment capital of the state budget annually and maintaining the ceiling on public investment.

Regarding local budget balance capital: Allow localities to be assigned annual public investment plans for capital sources in the local budget balance based on actual revenue capacity, ensuring no increase in the annual local budget deficit, and to summarize at the end of the medium-term public investment plan for the 2016-2020 period.

Assign People's Councils at all levels to decide on the allocation of the reserve for the Medium-term Public Investment Plan for the period 2016-2020 from their local budget sources, ensuring the principles and priority order of capital allocation prescribed in the Law on Public Investment and Resolution No. 26/2016/QH14 of the National Assembly on the Medium-term Public Investment Plan for the period 2016-2020.

The National Assembly's Resolution also stipulates the principles and priority order for allocating the remaining central budget reserve capital and additional foreign capital; Supplementing the project list and adjusting the medium-term public investment plan of central budget capital for the 2016-2020 period.

Resolution assigns the Government to direct ministries, central agencies and localities to strengthen the implementation of solutions to overcome shortcomings and difficulties, effectively implement Resolution No. 26/2016/QH14 of the National Assembly, accelerate the allocation and disbursement of public investment capital; urgently complete procedures, documents, arrange plans and disburse funds for important national projects and National Target Programs decided by the National Assembly; review and urgently complete the list of projects, estimate the specific capital allocation for each project using the central budget's general reserve fund, ensure strictness, transparency and fairness, report to the National Assembly Standing Committee for consideration and decision.