Prime Minister: By 2023, 95% of the total capital of 711 trillion VND in public investment must be disbursed

On the morning of February 21, speaking at the opening of the national online conference to urge the acceleration of allocation and disbursement of public investment capital and implementation of the Socio-Economic Recovery and Development Program, Prime Minister Pham Minh Chinh noted that it is necessary to maintain steadfastness and flexibility to lead and direct socio-economic development in the context of difficulties, challenges, and simultaneous pressure from both inside and outside.

Prime Minister Pham Minh Chinh. Photo: Nhat Bac

Emphasizing that one of the solutions is to promote public investment, disbursement of public investment is both a resource and a driving force for development, the Prime Minister said that this is still a heavy task, difficult to implement, and a concern that has lasted for many years and many terms.

Disbursement of at least 95% of the total of more than 711 trillion VND

In 2023, the Government identified promoting the allocation and disbursement of public investment capital and implementing the socio-economic recovery and development program, and the three national target programs as one of the key tasks of all levels, sectors and localities.

Disbursement of public investment is important in many aspects, contributing to removing bottlenecks in transport infrastructure, education, culture, health, society, etc. At the same time, it solves employment, enhances social security; creates new momentum, new development space, promotes production and business.

Disbursement of public investment also strengthens local and regional connectivity; maintains macroeconomic stability, ensures major balances, increases the economy's production capacity, promotes rapid recovery and sustainable development.

According to the Prime Minister, promoting public investment disbursement also contributes to implementing a focused, key expansionary fiscal policy in harmonious, reasonable, and close coordination with a firm, proactive, flexible, and effective monetary policy and other policies. From there, we continue to prioritize maintaining macroeconomic stability, controlling inflation, promoting growth, and ensuring major balances of the economy.

Delegates attending the conference.

In 2022, the Government issued many resolutions, directives, telegrams, organized many national online conferences and meetings; established 6 working groups of the Prime Minister to inspect and urge the disbursement of public investment capital...

The Prime Minister, Deputy Prime Ministers, and leaders of ministries and branches, when on business trips to localities, spent a lot of time inspecting and examining key national, provincial, and municipal public investment projects.

Thanks to that, the estimated disbursement of the State budget investment plan by January 31, 2023 reached more than VND 541,857 billion, approximately 93.5% of the assigned plan. Although this figure is lower than the same period in 2021 (the same period in 2021 reached 95.11%), it is the year with the highest absolute disbursement compared to previous years, an increase of about 23.5% (about VND 103 trillion) compared to 2021.

The Prime Minister noted that the work of disbursing public investment capital and implementing the socio-economic recovery and development program is increasingly burdensome when the total state budget capital plan in 2023 is nearly 711.7 trillion VND, an increase of more than 130 trillion VND compared to 2022.

Therefore, he requested that sectors and levels must ensure both a high rate of public investment disbursement and the right quality and efficiency of works and projects. If there is no appropriate solution from the first day and the first month, the disbursement of public investment will be slow, the longer public investment takes, the more wasteful it will be, capital will increase, the ICOR will increase, efficiency will decrease, affecting resources and development motivation.

The Prime Minister stated that the target of disbursing at least 95% of the total of more than VND711 trillion in public investment capital in 2023 must be achieved.

Therefore, the head of the Government requested to analyze objective and subjective causes; lessons learned, good solutions, good practices; orientations, tasks, and solutions for the coming time; promptly remove difficulties and obstacles, and create changes in public investment disbursement.

Hope the Prime Minister clears up the story about capital allocation

Chairman of the Ho Chi Minh City People's Committee Phan Van Mai said that in 2023, Ho Chi Minh City will be allocated 70,000 billion VND in capital, nearly double that of 2022. Of which, 16,500 billion VND is central capital and 55,200 billion VND is local capital.

Up to now, the projects eligible for allocation are 14,000 billion VND, and 4 projects with a total capital of 12,000 billion VND are being urgently completed by Ho Chi Minh City and by the end of March 2023, the Ho Chi Minh City People's Council will have a special session to allocate 100% of local capital.

Learning from experience in 2022, Ho Chi Minh City is determined to do better to achieve the target of disbursing public investment capital in 2023.

Bridgehead Hanoi City and provinces.

The leaders of Hanoi City also said that in 2023, Hanoi City immediately deployed nearly 47,000 billion VND of public investment capital and assigned the main responsibility. From the beginning of the year, Hanoi City also inspected public affairs on public investment, inspected the results of 2022 and prepared for 2023. By the end of February 2023, Hanoi had disbursed more than 3,600 billion VND (5.5% of the 2023 plan).

Regarding the proposal, in addition to the proposal on ODA capital for the Yen Xa wastewater plant, there is also the Nhon - Hanoi Railway Station road project whose loan agreement has expired until December 31. The Prime Minister has also inspected the project and Hanoi has reported progress since the end of November, but it was not until January 2023 that a document was sent to the Ministry of Planning and Investment to convey the Deputy Prime Minister's opinion for appraisal. Thus, the procedures and processes are too slow.

Hanoi and many other provinces and cities are stuck with the problem of having enough capital to build investment plans. Hanoi has 25,000 billion VND in public investment capital this term, which can only be allocated for 5-7 projects that have already run out and must be completed in at least 2 terms.

This is the story of the tenure affecting the allocation of public investment capital that the People's Council cannot resolve. Any resolution is against the law. Therefore, Hanoi leaders hope that the Prime Minister will pay attention and direct the resolution of the story of capital allocation.