Unlocking Investment Potential: Deputy Prime Minister Demands Clear Timeline for Public Investment Capital Disbursement

On August 30, Deputy Prime Minister Tran Hong Ha chaired a hybrid meeting on the allocation and disbursement of public investment capital, with the participation of 29 central ministries, agencies, and localities (belonging to Task Force No.2).

According to the Ministry of Planning and Investment, the total planned public investment capital for 2024 allocated by the Prime Minister to these 29 agencies amounts to VND 231,667 billion. Approximately VND 228,567 billion, or 98.66%, has been allocated in detail, with 18 agencies having allocated all their assigned capital. The remaining unallocated capital stands at about VND 3,100 billion, or 1.34%.

Regarding disbursement progress, the Ministry of Finance reported that the total disbursed capital of the 29 agencies reached VND 87,073 billion, equivalent to 37.59%, which is higher than the national average of 34.68%. Eight agencies recorded disbursement rates above the national average, 16 agencies had low disbursement rates (between 10% and 34%), and five agencies had very low disbursement rates (below 10%).

The slow allocation of capital plans and low disbursement rates in some ministries, sectors, and localities are attributed to delays in completing investment procedures, adjusting medium-term public investment plans for the 2021-2025 period, and ensuring local budget counterfunding sources for capital allocation in 2024. Other factors include ineffective site clearance and resettlement support.

At the meeting, the Ministry of Planning and Investment requested that ministries, sectors, and localities review their disbursement progress according to the allocated capital plans and proactively handle issues within their authority. They were also advised to coordinate with specialized agencies to address difficulties and obstacles.

Emphasizing the need for solutions to remove bottlenecks right from the project preparation and investment decision approval stages, Deputy Prime Minister Tran Hong Ha instructed the ministries, sectors, and localities to report the results of reviewing and classifying public investment projects into two groups: those that are underway with clear commitments on progress and those that cannot be implemented due to institutional, policy, and legal obstacles. Based on this classification, they should propose adjustments to reduce the allocated capital or allocate additional capital to projects with high absorption capacity.

The Deputy Prime Minister requested that the ministries, sectors, and localities proactively perform tasks within their authority and responsibility during the project preparation, appraisal, and approval of investment decisions, as well as in site clearance. They should only propose adjustments and additions to the medium-term public investment plans for projects that have been approved for investment decisions.

Regarding the Ministry of Planning and Investment, the Deputy Prime Minister suggested considering adjustments and advance allocations from the central budget to ensure the progress of projects with inter-regional and climate change adaptation characteristics while local counterpart funds are not yet arranged.