Vietnam: Government allows not to cut investment capital of disbursing units below 60%

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Vietnam: Government allows not to cut investment capital of disbursing units below 60%

Ministries, sectors and localities by September 30, 2021 with a disbursement rate of less than 60% of the central budget plan in 2021 will also not have their capital cut, contributing to economic growth.

The Government has decided not to cut the central budget investment plan in 2021 of ministries, central agencies and localities, until September 30, 2021 with the disbursement rate below 60% of the plan. The central budget capital plan has been assigned from the beginning of 2021 according to the Government’s Resolution No. 63/NQ-CP dated June 29, 2021.

This is an important content of the Resolution of the Government’s regular meeting in October 2021, just issued.

Also according to the Resolution, the heads of ministries, central agencies and provincial-level People’s Committees actively reduce the investment plan of central budget capital in 2020 which has been extended to 2021 of projects that are behind schedule until 2021. projects with good disbursement progress and with additional needs in the list of medium-term public investment plans for the period 2016-2020, transitioning to 2021-2025 or recovering advance capital and payment obligations of the budget Center.

The Government will set up working groups to inspect

Previously, at the Government’s regular meeting in October 2021, in order to manage the disbursement of public investment capital, improve the efficiency of capital use, and promote economic growth, especially in the context of the domestic economy. Due to the Covid-19 pandemic, the Ministry of Planning and Investment submitted to the Government for permission not to cut the central budget investment plan in 2021 of ministries, central agencies and localities. low disbursement rate.

At the same time, it is also recommended that the Government agree on the adjustment of the central budget investment plan in 2020 which has been extended to 2021, in the direction that “heads of ministries, central agencies and provincial-level People’s Committees are responsible for the implementation of the plan. The action to reduce the investment plan of central budget capital in 2020 has been extended to 2021 of slow-moving projects to projects with good disbursement progress and with additional needs on the list of plans. medium-term public investment in the 2016-2020 period will be transferred to 2021-2025 or recover the advance capital and payment obligations of the central budget”.

The government approved this proposal.

According to previously reported data, in 9 months, the disbursement of public investment capital nationwide reached over 218,550 billion VND, equaling 47.38% of the plan assigned by the Prime Minister, quite low compared to the level achieved in the same period – 56.33%.

For new construction projects in the period of 2021-2025, focus on preparing for investment in the first months of the year and only implement them after being assigned the medium-term public investment plan for the period of 2021- 2025.

The year 2021 is also a very special year because never before has the Vietnamese economy had to devote so much effort and resources to the prevention and control of the pandemic, and never before have many provinces, cities and localities have to implement the following measures: measures to distance and limit contact like this year.

This leads to the circulation of goods, including raw materials, which is difficult, the price of raw materials increases, the labor source is limited because many workers quit, and incurs additional costs of epidemic prevention.

It is for these “special” reasons that the Ministry of Planning and Investment has proposed not to cut the capital for the 2021 plan of slow disbursing units. Moreover, in the context of the economy being severely affected by Covid-19, not cutting investment capital is also a way to get more resources and promote economic growth.

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