Important boost to promote public investment disbursement

The National Assembly's official approval of the Law on Public Investment (amended) can be said to create an important boost to promote the disbursement of public investment capital. This is more important and necessary than ever, especially in the context of slow disbursement of public investment capital, while this is one of the important driving forces for economic growth.

The National Assembly's official approval of the Law on Public Investment (amended) can be said to create an important boost to promote the disbursement of public investment capital. This is more important and necessary than ever, especially in the context of slow disbursement of public investment capital, while this is one of the important driving forces for economic growth.

It is no coincidence that in recent years, the Government has always given top priority to removing difficulties and obstacles to promote the disbursement of public investment capital. It is also no coincidence that the Government has urged the immediate amendment of the Law on Public Investment and submitted it to the National Assembly for approval at the 8th Session of the 15th National Assembly. The goal is to immediately remove bottlenecks, create breakthroughs in the disbursement of public investment capital, and at the same time create breakthroughs in socio-economic development.

The National Assembly Standing Committee, in response to some opinions that the Law on Public Investment (amended) should not be passed in this session, also emphasized that the passage of the Law at the 8th Session will create a synchronous legal basis for ministries, branches and localities to promptly deploy and apply it in 2025, serving the preparation for the development and implementation of the Medium-Term Public Investment Plan for the 2026-2030 period.

Similarly, amending the Law certainly has great significance in promoting the disbursement of public investment capital, first of all in 2025 and the following years. Because, among the many reasons for the slow disbursement of public investment capital, in addition to contractor capacity, material prices, etc., there are also issues related to decentralization and delegation of authority; there are issues about disbursement procedures for ODA projects that are not really suitable; there are also problems related to project preparation procedures, compensation, resettlement, etc.

These problems will be solved in the Law on Public Investment (amended) that the National Assembly has just officially passed. When the problems and difficulties are fixed from the root, there will be no need to worry about “a leisurely start of the year, a hard end of the year”, and the situation of “capital waiting for projects” will also be avoided, thereby, resources will be released and used more effectively, thereby positively affecting economic growth.

Data recently released by the Ministry of Finance shows that by the end of November 2024, the disbursement of public investment capital is estimated to have reached nearly VND411,000 billion, equivalent to 60.43% of the plan assigned by the Prime Minister. There are only 2 months left (as of the end of January 2025) until the end of the 2024 budget year, but there are still more than VND230,000 billion that need to be disbursed. Thus, the end of the year will be a "hard" race to disburse.

In promoting the disbursement of public investment capital, efforts to reform and amend institutions and policies are only one part; the work of direction and administration plays an extremely important role. Therefore, within the same institutional and policy framework, there are ministries, sectors and localities that disburse quickly, but there are also ministries, sectors and localities that disburse slowly, and even have to ask for capital to be returned because they know they cannot complete the plan.

A very obvious example. In the past 11 months, while 18 ministries, central agencies and 40 localities estimated that their disbursement rates were higher than the national average, there were still 28 ministries, central agencies and 23 localities estimated that their disbursement rates were lower than the national average. In particular, there are some units that have not yet disbursed any capital. Many localities have large amounts of allocated capital, such as Ho Chi Minh City, Bac Ninh, etc., but their disbursement rates are low, affecting the overall results of the whole country. Therefore, although the Law on Public Investment (amended) has been passed, in order to create a breakthrough in institutions and policies, the first important thing is to quickly put the Law into practice and promote its effectiveness. Of course, along with that, the direction and management of public investment disbursement must also be more drastic.

In the Law on Public Investment (amended), decentralization and delegation of power are thoroughly implemented with the motto "locality decides, locality acts, locality takes responsibility". This further affirms that direction and administration will play a decisive role in public investment disbursement. Therefore, in the coming time, ministries, branches and localities must further improve the effectiveness and efficiency of management, direction and administration of public investment.

Source: https://baodautu.vn/cu-hich-quan-trong-thuc-giai-ngan-dau-tu-cong-d231381.html