As of October 16, 2024, the disbursement rate of Quang Nam's 2024 public investment capital plan reached 46.1% of the capital plan assigned by the Prime Minister (central budget source reached 37.6%), which is too low compared to the requirements.
Capital plan transfer
The Provincial People's Council has approved an adjustment to reduce the 2024 public investment capital plan by nearly VND 246.2 billion from tasks, resolutions and projects with slow disbursement or unable to fully disburse the 2024 capital plan. Specifically: the resolutions of the Provincial People's Council will reduce nearly VND 33.8 billion and nearly VND 212.4 billion of many other projects.
According to Mr. Dinh Chau Hieu Toan - Head of Planning and Synthesis Department of the Department of Planning and Investment, in Resolution No. 56 dated December 8, 2023, the Provincial People's Council assigned the investment expenditure estimate from land use fee revenue (the amount included in the provincial balance) of about 1,072 billion VND. The allocated land use source is more than 645.8 billion VND; nearly 426.2 billion VND has not been allocated.
However, according to statistics, the current revenue from land use fees generated by the provincial budget is 125 billion VND. Thus, the shortfall in land use fees (budget imbalance) is more than 520.8 billion VND.
To ensure budget balance, land use revenue saved through review and adjustment of nearly 117.4 billion VND will be calculated to recover the budget to overcome the shortfall in land use revenue.
The remaining adjusted capital reduction of nearly 128.8 billion VND will be supplemented for tasks and projects according to the principles and priority order of capital allocation. Accordingly, it will be arranged for resolutions and projects that have been completed, handed over and put into use, have approved final settlement or completed final settlement audit with an amount of nearly 21.7 billion VND, arranged to recover advanced capital of 2 ODA projects (Central Region Linkage and Building Climate Change Adaptive Infrastructure for Ethnic Minorities (CRIEM) of more than 32.5 billion VND and pay off the debt of the transitional volume of resolutions and projects (including counterpart capital of the National Target Program) of more than 74.6 billion VND.
The province does not have to wait until the end of 2024 to consider transferring public investment capital from the 2024 budget. As soon as the review by the State Treasury of Quang Nam by the end of May 2024 showed that 13 departments, branches, and 12 localities had a low disbursement rate of public investment capital plan below 15%, the Provincial People's Committee decided that by the end of May 31, 2024, for tasks and projects that do not meet the conditions for capital plan allocation, the Department of Planning and Investment will advise the Provincial People's Committee to report to the Provincial People's Council to consider cutting the capital plan and transferring additional capital to other projects in need.
Quang Nam authorities are determined to transfer, cut or reverse the capital plan from projects that are unable to disburse or disburse on schedule to supplement projects with high disbursement that need additional capital plans, projects that have been completed and settled, projects that need to pay off debt, site clearance and provincial budget projects that owe capital construction debt.
Push disbursement rate
According to statistics, along with the efforts of investors and localities in speeding up construction progress, completing projects, completing settlement and disbursement documents, the transfer of capital through many phases (about more than 500 billion VND) has contributed to significantly increasing the disbursement rate.
Another difference from previous years is that investors and localities do not "hoard capital" but proactively check and review the disbursement capacity of each specific project with a low disbursement rate to propose to competent authorities to adjust the capital plan to projects that ensure volume.
This capital can be transferred to projects that can be disbursed immediately upon receiving additional capital within each unit or recommending competent authorities to adjust the annual capital plan to transfer to units and localities in need of additional capital.
In addition, for projects that are stuck with land clearance and compensation work that has been pending for a long time and cannot be continued, it is proposed to stop the project or reduce the scale of the project to carry out the final settlement of the completed project.
Quang Nam Provincial People's Committee has requested the Ministry of Planning and Investment and the Ministry of Finance to synthesize and submit to the Prime Minister a decision to adjust the foreign capital plan for 2024 by more than 163 billion VND (the provincial budget re-borrows 80.4 billion VND, the central budget allocates 82.6 billion VND) to other provinces and cities in need.
In addition, if accepting the "risk" of transferring the central budget capital plan (there will be difficulties in whether the central government will allocate more capital or not, it is possible to transfer capital from the 129 road project to Van Ly bridge, which has a volume, but is short of about 50 billion VND this year), then hopefully Quang Nam will increase the disbursement rate in 2024 to reach the set target.
The disbursement year will end on January 31, 2025. The pressure to disburse has forced the government to decide to transfer or cut capital... which has become a routine. It can be seen that cutting or transferring capital to increase the disbursement rate is only a temporary, situational solution.
However, Mr. Nguyen Quang Thu - Director of the Department of Planning and Investment said that to achieve a high disbursement rate, in addition to the efforts of investors, cutting and transferring capital is only a technical and situational solution, but it is a "lifebuoy" to increase the planned capital disbursement rate.
Many questions have been raised about the capital transfer and whether all of the transferred capital will be disbursed. Mr. Doan Van Thong - Secretary of Phuoc Son District Party Committee said that there are only 2 months left until the end of the year, along with the rainy and stormy season.
It will be difficult to disburse all the additional capital for the locality (50 billion VND), which will reduce the disbursement rate of the district. Therefore, it is necessary to share and sympathize with the locality when the maximum disbursement rate is not reached.
Mr. Nguyen Duc - Head of the Economic - Budget Committee of the Provincial People's Council said that the advisory agencies have considered each adjustment list. It is impossible to adjust or supplement the projects and localities without using up all the capital. The most important thing is to disburse on schedule, spend all the capital and effectively use the budget capital for the quality of the works and projects that have agreed to transfer capital.
Source: https://baoquangnam.vn/dieu-chuyen-von-dau-tu-cong-ke-sach-giai-ngan-cua-quang-nam-3143758.html
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