Many units still "sluggish" to allocate public investment capital

Although the first half of the year had passed, there was investment capital that had not been allocated. Source: Internet

More than VND58 trillion of unallocated investment capital

According to a report by the Ministry of Finance, by the end of June, the total public investment capital allocated from the state budget in 2022 is VND527,235 billion, reaching 97.26% of the capital plan assigned by the Prime Minister. In particular, the assigned localities increased by VND43,549 billion compared to the plan assigned by the Prime Minister. If excluding the increase in the number of local budget balancing capital plans assigned by localities, the total allocated capital was VND483,685 billion, reaching 89.22% of the plan assigned by the Prime Minister.

Thus, the total unallocated capital is VND58,420 billion, accounting for 10.78% of the plan assigned by the Prime Minister. Specifically, in the group of ministries and central agencies, the unallocated capital is VND7,071 billion (accounting for 6.40% of the plan); in the group of localities, the unallocated capital is VND51,348 billion (accounting for 11.90% of the plan).

The Ministry of Finance said that there were many reasons behind this situation. Although the first half of the year had passed, there was investment capital that had not been allocated. In particular, regarding the capital from the central budget, by the end of June, nine out of 51 ministries and six out of 63 localities had not fully allocated the capital plan assigned by the Prime Minister.

The reason was that the ministries, central and local agencies have not yet allocated capital plans in detail for the capital plan which was expected to arrange new construction projects. However, it has not completed investment procedures or not been included in medium-term public investment plans for 2021-2025.

Regarding the capital for balancing the local budget, by the end of June, 42 out of 63 localities had assigned capital plans to balance the local budget, increasing compared with the Prime Minister's allocation from land-use revenue, increasing in revenue, revenue from the local lottery.

However, there were still 11 out of 63 localities that have not fully allocated the capital plan to balance the local budget. The reason was that some localities have just assigned the first phase plan, some projects had not completed investment procedures and the source of State budget deficit would be allocated later.

Correction of shortcomings in capital allocation

Reports on the results of six working groups of the Government showed that, in general, the ministries and central agencies and localities had proactively and actively assigned the state budget investment plan in 2022, meeting the requirements that the project can be disbursed from the beginning of the year. In addition, ministries, central agencies and localities have basically allocated capital following the principles and criteria specified in the Law on Public Investment, resolutions of the National Assembly, decisions of the Prime Minister and within the scope of the state budget investment plan assigned by the Prime Minister.

As for the unallocated capital, many stated that the slow allocation of capital and not allocating all of the capital has reduced the effectiveness of public investment because the capital could not spend for society, and did not reach the projects and works which brought more benefits to society and the country.

Faced with this situation, the Ministry of Finance suggested ministries, central and local agencies should base on the capital of the 2022 plan assigned by the Prime Minister, to urgently complete investment procedures and allocate detailed capital for investment projects; review, adjust or report to the competent authority to correct the shortcomings in capital allocation to ensure that the allocation of the capital plan complies with regulations.

At the same time, the Ministry of Finance proposed ministries, central agencies, and localities propose plans to reduce central budget expenditures that have been allocated in the investment estimates but have not been allocated by the end of June 30, 2022 (except for special cases decided by the Prime Minister) to supplement resources to implement the economic recovery and development program.

On that basis, the Ministry of Planning and Investment will summarize and submit to the competent authorities to reduce and adjust the public investment plan in 2022 in order to supplement the ministries, and central and local agencies that need capital.