The Ministry of Planning and Investment (MPI) can not complete the capital allocation plan of VND3.4 trillion (US$137 million) for projects under the socio-economic programme, as three ministries and the People’s Committee of Lang Son Province failed to submit spending plans on time.

The ministries of Health, Transport, and Labour, Invalids and Social Affairs have been slow in developing public investment plans, including projects funded with capital from the socio-economic recovery programme.

According to the MPI, by the end of last month, VND66.3 trillion from the programme was disbursed.

In late September, Prime Minister Pham Minh Chinh decided to earmark over VND147 trillion (US$6.39 billion) from the State budget for ministries, agencies and localities to carry out the socio-economic recovery and development programme.

They were required to use public investment capital in line with the National Assembly’s resolution and relevant legal regulations on this issue.

In cases where projects need more capital than the State budget allocated, localities must be responsible for arranging enough local budget. 

Seeing the slowness of public investment at ministries and localities, MPI has asked the health ministry to complete soon funding plans for health projects included in the socio-economic recovery and development programme.

The labour ministry was asked to review and update data on its two projects set to be implemented in Binh Phuoc and Dien Bien Province. The two provinces asked for funding of VND80 billion each, but the Ministry of Labour estimates this is likely to be VND70 billion for Binh Phuoc and VND60 billion for Dien Bien. 

The two provinces have yet to announce funds from their budgets that they planned to spend on projects under the socio-economic recovery programme.

MPI also asked transport ministry and Lang Son Province to complete an investment proposal on upgrading part of National Highway 4B that runs through the province.

According to the MPI, the capital disbursement in the socio-economic recovery and development programme is still slower than expected. The ministry called on other ministries, agencies and localities to prepare properly so that funding for public investment projects could be disbursed smoothly at the beginning of next year.

In Vietnam, disbursement for public investment projects at year-end is usually faster than at the beginning of the year. 

Source: Vietnam News