Improving discipline critical to paying off public investment

VIETNAM, July 5 –

HÀ NỘI — It is extremely important to issue regulations to improve discipline in the disbursement of public investments, along with amendments to several existing legal provisions, to speed up the implementation of public investment projects.

According to statistics from the Ministry of Finance, the public payment rate is estimated at 27.75% of the government’s plan, slightly lower than the same period last year, which was over 29%.

From it, domestic capitals contributed 29.06 percent, and foreign – 8.61 percent, compared to 31.75 percent and 7.37 percent respectively for the same period last year.

According to a joint report by the Ministries of Finance and Planning and Investment, most of the reasons that lead to stagnation in public investment payouts have been recognized for many years but have not been thoroughly addressed.

The biggest difficulty was compensation for site clearance due to problems related to compensation prices, plans and difficulties in moving engineering facilities, as well as inconsistencies between land planning and others.

The plan to use state capital was close to feasible, with no capital allocated. Much of the capital remained unpaid because the projects had not completed the investment procedures. The project planning was also not realistic.

There was also a lack of sense of compliance with the law, respect for discipline in the implementation of public investment projects and seriousness in complying with regulations, criteria and principles.

Minister of Planning and Investment Nguyễn Chí Dũng cited other reasons, such as the impact of the COVID-19 pandemic and skyrocketing materials.

However, Dung added that public investment disbursement was often low in the early months of this year and has accelerated in recent months. He said the low payout rate in the first half of this year could not demonstrate the full year’s performance.

Improved reporting

2022 was an important year to lay the foundation for realizing the goals of the 2021-25 medium-term public investment plan, Dung said.

He emphasized that accelerating public investment and increasing the socio-economic efficiency of publicly invested projects is extremely important to stimulate economic growth in both the short and long term, as public investment continues to be recognized as an engine for growth. especially capital in infrastructure development.

The implementation problems of public investment projects must be radically solved by continuously improving policies, renewing the approach and managing the use of this capital in accordance with development requirements, Dung said.

To implement the public investment plan this year, it was necessary to strengthen the accountability of managers.

Accordingly, the heads of ministries and central and local agencies should eliminate the difficulties related to land and natural resources and review the transfer of investment from projects with slow payback to projects with good progress. They must be responsible for the investment efficiency of the projects under their management, the ministries of finance and planning and investments state.

Compensation policies for site clearance should be transparent and build trust and consensus among people.

The two ministries also called for a more recent promulgation of regulations that aim to strengthen discipline in the implementation of public investment projects in accordance with established strategies and plans and to prevent long-term thinking in the development and selection of public investment projects.

There should be sanctions for ministries and agencies that have not paid back the earmarked capital on time.

Relevant laws such as land, state budget, construction and mineral laws should be reviewed for amendments to ensure a consistent legal system, which is a prerequisite for the smooth implementation of public investment projects, Dung stressed.

In 2017-22, the public investment rate was highest in 2020 at 96.47%, followed by 2021 at 95.7%. The lowest percentage was reported in 2018 – 76.89 percent, then in 2019 – 78.83 percent. — VNS

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