Public Investment Disbursement for 4 Months Reaches 14.66% of Plan
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The Ministry of Finance reported the situation of capital payment for public investment sources in March and estimated the completion of 4 months of the 2024 plan. The cumulative public investment capital payment for the 2024 plan from the beginning of the year to the end of March 2024 was 80,689 billion VND, or 11.43% of the plan (706,206.5 billion VND); the Socio-Economic Recovery and Development Program was 1,684.57 billion VND (27.56% of the implementation plan).
The rate of public investment capital estimated to be disbursed from the beginning of the year to April 30, 2024 is 115,906,9 billion VND, reaching 16.41% of the total plan; reaching 17.46% of the plan assigned by the Prime Minister (663,807 billion VND).
According to the Ministry of Finance’s assessment, the estimated disbursement ratio for the whole country for 4 months increased compared to the same period in 2023 (in the same period in 2023, the disbursement reached 14.66% of the total plan and 15.65% of the plan assigned by the Prime Minister).
Although the disbursement rate of public investment capital in all sectors is showing positive signs, according to the Ministry of Finance, there are still many obstacles that have caused the disbursement progress to not meet the expectations set out.
Specifically, there are obstacles related to national key projects. The Ministry of Finance’s report states that on March 30, 2024, the Prime Minister issued Decision No. 258/QD-TTg on allocating budget capital and investment plans for the central government in 2024 from the increased revenue, cut, and saving of the central budget in 2021 to the Ministry of Transport and 8 localities to implement 3 important national expressway projects.
However, until April 23, 2024, only the Ministry of Transport and 4 localities (Khanh Hoa, Dak Lak, Can Tho, Hau Giang) had detailed the 2024 central government budget plan for the assigned sub-component projects, with a total capital of 4,021 billion VND has been assigned. The remaining 4 localities of An Giang, Soc Trang, Dong Nai, and Ba Ria – Vung Tau have not yet submitted the 2024 plan, with a total unallocated capital plan of 2,437 billion VND.
Moreover, regarding the progress of site clearance and project execution, according to the report of the Ministry of Transport, the progress of site clearance in some sub-projects of the North-South Expressway Project, phase 2021-2025; Bien Hoa – Vung Tau project; Khanh Hoa – Buon Ma Thuot project is slower than the requirements of the Government and the Prime Minister. The relocation of technical infrastructure, especially high-voltage power lines, is still facing many difficulties and delays. The conversion of land use purpose for forests, forest land, and rice land for the North-South Expressway project in the East, phase 2021-2025, and the Khanh Hoa – Buon Ma Thuot project has not been completed.
In addition, the implementation of many large transportation projects in the same area at the same time has led to a shortage of materials in the construction process, especially earthwork, sand, and stone materials for projects in the Mekong Delta region. The implementation of the specific mechanism on the exploitation of ordinary construction materials still faces many difficulties and obstacles.
Regarding the capital source for the national target program, the work of completing the management regime, organizing the implementation of national target programs from the central to local levels is still slow, not timely, and lacks synchronization, which greatly affects activities from allocation, handover of project implementation plans, and disbursement of funding to ministries, central agencies, and localities. Accordingly, there are still some central mechanisms that have not been issued, leading to localities still facing difficulties in implementation.
In particular, according to the Ministry of Finance, there are still some obstacles that have existed for a long time and have not been resolved, which are also the main causes affecting the disbursement progress.
For example, obstacles in some policy mechanisms; site clearance, focusing on determining the origin of land, determining land prices, people do not agree with compensation and resettlement plans; related to fluctuations in prices of raw materials, supply of construction materials…
In addition, in the first months of the year, the investors of newly started projects have been focusing on completing investment procedures, selecting contractors, and detailed design. Therefore, most of the projects have not yet completed a significant amount of work to be accepted, and disbursed for payment.
The Ministry of Finance stated that to promote the disbursement of public investment capital, in accordance with its assigned responsibilities, the Ministry of Finance recommends that the Ministry of Transport and localities strictly and urgently implement solutions to promote the disbursement of public investment capital as prescribed by the Government in the Resolution on tasks and solutions to implement the 2024 socio-economic development plan and state budget estimate; instructions of the Prime Minister – Head of the Steering Committee at the 10th meeting of the National Steering Committee for key and important construction works and projects of the Ministry of Transport.
Regarding compensation, support, and resettlement, the Ministry of Finance recommends that localities finalize the site clearance work according to the required progress, focusing on building resettlement areas and stabilizing people’s lives.
Regarding construction materials, the Ministry of Finance also proposes that localities quickly identify sufficient supply of materials, coordinate with investors and contractors to complete procedures on ordinary construction material mines in accordance with the specific mechanism of the National Assembly and Government, ensuring sufficient reserves and capacity according to the construction progress.
Regarding national target programs, the Ministry of Finance stated that within its authority, the Ministry of Finance has been and will continue to urge localities to accelerate the disbursement of national target programs and issue timely documents responding to and providing guidance on difficulties and obstacles of localities within its authority; coordinate with the Ministry of Planning and Investment and other ministries and central agencies to complete the draft documents of the Government’s Submission to the National Assembly on specific mechanisms to remove difficulties and obstacles, and accelerate the implementation progress of national target programs for the period 2021-2025.
The Ministry of Finance also requests that the program/project/sub-project managers (Ministry of Health, Ministry of Labor-Invalids and Social Affairs,…), the agency in charge of guiding the management of public investment capital (Ministry of Planning and Investment), and the People’s Committees of the provinces issue or submit to the competent authority for issuance of full policy mechanisms and promptly guide the organization of implementation, and remove difficulties and obstacles in the implementation process.
Finally, the Ministry of Finance requests that ministries, central agencies, and localities continue to implement resolutely, synchronously, and effectively the tasks and solutions to promote public investment capital disbursement in the Resolutions of the Government, Telegram No. 24/CD-TTg dated March 22, 2024 of the Prime Minister on accelerating the progress of allocation and disbursement of public investment capital for the year 2024.
