Strengthening review and cutting state budget expenditures

On the morning of November 2, continuing the 6th Session, the National Assembly discussed in the hall the implementation of the 2013 state budget estimate; the state budget estimate and the central budget allocation plan for 2014.

National Assembly delegate of Tay Ninh province Nguyen Thanh Tam speaks. (Photo: Lam Khanh/VNA)

National Assembly delegates also contributed many opinions on restructuring the portfolio and capital allocation mechanism of the National Target Programs for the 2011-2015 period; and gave comments on the plan to issue Government bonds for the 2014-2016 period.

Concentrate government bond capital on important projects and unfinished works

Discussing the plan to issue additional government bonds and use capital for the 2014-2016 period, delegates agreed to prioritize investment in projects related to the expansion of National Highway 1A and the construction of National Highway 14.

Many opinions suggested that the Government direct the review of the total investment of each specific project, adjust the design, estimate, and cut down on unreasonable contingencies in many projects and sub-projects, especially projects with contingencies of up to nearly 50% of the total construction value. At the same time, it is necessary to ensure the progress, implementation time and quality of the project, not allowing any increase in the total investment.

This funding source should also be focused on unfinished projects, lacking capital, and capable of being completed in 2014 and 2015; in which, priority should be given to important hospital and irrigation projects that have a great impact on the economic development of the whole region and locality.

Agreeing with the allocation of the plan to use the issuance of Government bonds in the 2014-2016 period for the construction project to expand National Highway 1A and National Highway 14, because they are considered vital routes, of great significance to the country's socio-economic development, delegate Le Van Hoc (Lam Dong) suggested that there should be many measures to save costs.

The Government needs to re-examine the design and construction plan; the contingency fund should not be set at 50%. Recalculate the density of toll stations and have a plan to deal with the case where BOT project owners lack capital and cannot ensure progress, along with projects using government bond capital.

In particular, it is necessary to re-examine the calculation of costs, labor, materials, etc. in the direction of cutting out unnecessary auxiliary items; eliminating ceremonial costs such as inauguration and closing of construction sections in the overall project. Try to cut 10-15% of the total cost for this project, delegate Hoc suggested.

Spending 7 minutes speaking to analyze the causes of budget deficit and the increase in state budget deficit, delegate Tran Du Lich (Ho Chi Minh City) likened state budget revenue and expenditure to being in a state of "tugging on the bear and hugging the shoulder."

According to economic expert Tran Du Lich, the causes of state budget deficit include positive factors such as investment efforts, accelerating the construction of social infrastructure; investment to ensure social security, and reducing the gap between rich and poor are also causes of budget deficit.

However, factors such as maintaining for too long a unclear budget revenue and expenditure mechanism between the central and local levels; "overspending" in spending, over-expansion, and "bloating" the state apparatus have overloaded the budget. Poor enforcement of discipline in budget revenue and expenditure, and large losses in basic construction have contributed to increasing the state budget deficit.

Mr. Tran Du Lich welcomed the resolute moves of the leaders of the Transport sector in saving, cutting unnecessary and unreasonable expenses in basic construction investment, saving for the state budget. It is necessary to strictly control public spending, especially in building headquarters and purchasing equipment; consider this as consumption spending, not public investment, Mr. Lich said.

Supporting the Government's proposal to increase the budget deficit ceiling, delegate Tran Du Lich also recommended that the State should vigorously divest capital in unnecessary sectors; accelerate the equitization of corporations and general companies to collect capital for infrastructure construction projects; and only maintain enterprises in the fields of defense, security and some key and focal sectors.

Frustrated by the loss of state budget revenue in 2013, delegate Tran Quang Chieu (Nam Dinh) proposed clarifying responsibilities in state management. The delegate frankly suggested that the financial sector should boldly take responsibility for weaknesses in organization and management that led to the reduction of state budget revenue.

Delegates proposed that the National Assembly increase investment capital for science, technology, and education. Delegate Chieu suggested that the Government urgently complete a more appropriate fiscal policy, reduce budget deficit, and ensure the safety of the national financial system, "so that future generations will not say that they only cared about paying off the debts we left behind."

Pointing out the major impacts that have led to the loss of billions of dong to the budget, delegate Chieu proposed to further strengthen investigation activities, clarify fraudulent and transfer pricing acts; adjust sanctions in the direction of severe penalties; "must consider this action as fraud, cheating, and tax evasion" and seize all discovered money.

Concluding his opinion with the statement that “2013 budget collection was a sad year,” delegate Tran Quang Chieu hopes that “2014 will no longer be sad.”

Restructuring the list and implementation mechanism of National Target Programs

Evaluating the results of 3 years of implementing the National Target Programs (2011-2013), some opinions said that despite many efforts, the capital mobilization results were low, the ability to mobilize the necessary investment resources according to the Resolution of the National Assembly did not meet, leading to many national target programs having difficulty achieving the goals of the entire period 2011-2015.

The quality and effectiveness of implementation in some programs are not high, and sustainability is limited. Capital allocation and transfer are slow, capital use efficiency in some national target programs in some localities is low, large source transfers, and signs of loss and waste. National target programs lack integration, and their content overlaps with each other and with other targeted support programs of the Central Government.

Some opinions suggested that in 2014-2015, due to difficulties in capital sources, it is recommended to only focus on allocating capital to the National Target Program on Sustainable Poverty Reduction, the National Target Program on Employment and Vocational Training, the National Target Program on New Rural Development and two programs that have made specific commitments to international donors: the National Target Program on Clean Water and Rural Environmental Sanitation, and the National Target Program on Climate Change Response.

Delegate Ha Son Nhin (Gia Lai) said that some positive results have been achieved such as the goals, targets and tasks of some basic programs have been completed, contributing to socio-economic development; improving the quality of material and spiritual life, taking care of people's health, especially in rural areas, remote areas, border areas and islands; contributing to gradually changing the face of the countryside; making important contributions to the implementation of the goals of macroeconomic stability, ensuring social security, hunger eradication and poverty reduction.

However, delegates also acknowledged that there are currently too many National Target Programs being implemented at the same time, leading to difficulties for localities in directing and implementing.

Besides, although the list is long, the resources are limited, unfocused, and scattered, leading to low efficiency; the multi-level and multi-sector management mechanism is still very inadequate, causing consequences of prolonging the progress and implementation time of component projects.

Delegates recommended that the list of National Target Programs should be narrowed down, leaving only necessary programs, and the capital allocation and allocation mechanism should be innovated to ensure effective implementation in practice.

Also proposing to restructure the number of National Target Programs, delegate Phung Duc Tien (Ha Nam) suggested that it is necessary to build National Target Programs based on target areas and spreading areas to have more practical meaning. In addition, it is necessary to review expenditures, ensure effective spending, avoid spreading and waste.

In the afternoon, National Assembly deputies discussed in groups the implementation status (including the issuance of detailed regulations and implementation instructions) of laws and resolutions passed by the 13th National Assembly./.

According to VNA