06:06 | 01/09/2020 Economy
(VEN) - Accelerating the disbursement of public investment is an urgent priority in order to fulfill the disbursement target for the 2016-2020 period and promote socioeconomic development.
Accelerating delayed projects
Public investment disbursement is considered one of major drivers of economic post-pandemic recovery. The Vietnamese government has targeted the disbursement of all public investment planned for this year as well as of sums transferred from previous years - a total of US$28 billion, equivalent to more than VND633 trillion.
Associate Professor Tran Dinh Thien, former director of the Vietnam Institute of Economics, said that given the decline in private investment, accelerating public investment disbursement would contribute significantly to maintaining growth momentum. The disbursement of several hundred trillion dongs will contribute to promoting production, creating jobs, and more, Thien said.
Public capital has two aspects that contribute to gross domestic product (GDP) growth. Firstly, public capital is part of the investment value. Although it only contributes a quarter to total social investment, its role is reflected in the second aspect that is used to build essential infrastructure serving the economy. Public capital is vital for completing long-delayed infrastructure projects, which will have a strong spillover effect on economic development, business activities, and services.
Public disbursement has the added advantage paying businesses and contractors, an effective contribution to accelerating progress.
The prime minister has issued instructions directing ministries, departments and localities to focus on accelerating public investment disbursement, forming seven teams to inspect public investment disbursement by various ministries, agencies and localities. These teams are led personally by the prime minister, deputy prime ministers and several ministers.
Ministries, departments and localities have also implemented other solutions to fulfill disbursement targets this year. Specifically, the Ministry of Finance has strengthened management of capital withdrawal applications, developed a decree on management, payment and settlement of public investment projects, urged other ministries, departments and localities to allocate capital soon and enter data into the Treasury and Budget Management Information System (TABMIS), and finalized processes and procedures related to expenditure control, capital withdrawal and accounting.
The Ministry of Transport has issued an instruction on accelerating public investment disbursement in 2020, directing its affiliated units to promptly appraise and approve projects, bidding plans and project estimates, and asked investors to appoint competent officers to oversee contractors.
The Ministry of Industry and Trade has completed the allocation of investment plans using the 2020 state budget capital, including documents to accelerate the disbursement of remaining public capital.
|Strict penalties will be imposed on leaders of localities and sectors that postpone disbursement and the investment will be transferred from those with slow disbursement to others, which disburse them faster.|