Promoting public investment efficiency

09:36 | 14/03/2017 Investment

(VEN) - The National Assembly Standing Committee convened its seventh session in Hanoi on February 20 and 21. At the session, the National Assembly Standing Committee’s members discussed a detailed allocation report on the medium-term public investment plan during the 2016-2020 period. Budget allocation must closely follow Resolution 26/2016/QH14 of the National Assembly on the medium-term public investment plan for the 2016-2020 period.  

According to Minister of Planning and Investment Nguyen Chi Dung, the National Assembly Standing Committee passed a resolution on the medium-term public investment plan for the 2016-2020 period at the second session of the 14th National Assembly on November 10, in which total budget spending was set at VND2,000 trillion, including VND1,120 trillion covered by the central budget and the remaining VND880 trillion from local budgets.

A resolution also stipulates that VND85 trillion in the central budget will be invested in key national projects, while more than VND72.8 trillion will be extracted from the state budget for the two national target programs for rural development and sustainable poverty reduction. In addition, 10 percent of each capital source will be set aside to resolve problems as they arise when implementing the medium-term public investment plan for the 2016-2020 period.

The governmental report also reveals that budget allocation must fulfill in the best manner the socioeconomic development goals and targets during the 2016-2020 period. It is necessary to allocate sufficient capital for payments of basic construction debts and recover the advanced capital, contributing to raising all resources and promoting public investment efficiency. In particular, capital allocation must be public and transparent.

According to the National Assembly’s Finance and Budget Committee, a list of projects submitted by the government was collected and classified based on proposals of ministries, departments and localities. However, some projects had not fully met the conditions under Resolution 26/2016/QH14 of the National Assembly on the medium-term public investment plan for the 2016-2020 period as well as the Law on Public Investment.

The National Assembly’s Finance and Budget Committee also said that by February 15, 2017, there were sufficient resources to implement payments of debts following construction of state-funded projects.

National Assembly Deputy Chairman Uong Chu Luu said that it is necessary to prioritize capital for payments of basic construction debts. In addition, it requires to give priority to ODA programs and investment projects through public-private-partnership (PPP) models.

National Assembly Deputy Chairman Phung Quoc Hien proposed the government to direct ministries and departments to strictly implement the Law on Public Investment in order to avoid inefficient investment. In addition, he assigned the National Assembly’s Finance and Budget Committee to supervise implementation of the medium-term public investment plan for the 2016- 2020 period.

Hoang Chau