Minister of Finance Ho Duc Phoc presents the report. Photo: Pham Kien/VNA
Presenting a report at the meeting, Minister of Finance Ho Duc Phoc said that Clause 1, Article 6 of the Law on Public Investment stipulates that renovation, upgrading and expansion projects, including the purchase of assets and equipment of the project, are public investment projects. During the implementation process, some problems have arisen, especially the inconsistent understanding among agencies of the above provisions. Therefore, the Government submitted to the National Assembly Standing Committee for consideration and explanation in writing of this provision to unify the understanding in the implementation organization.

The first understanding is that the Law on Public Investment does not stipulate restrictions on the subjects of tasks and projects using regular expenditure funds from the State budget.

The second understanding is that all projects with construction components for new construction, renovation, upgrading, and expansion of invested construction projects (belonging to infrastructure and facilities construction activities) and all projects for purchasing assets, purchasing and repairing, upgrading equipment and machinery (without construction components) are subject to the Law on Public Investment, so public investment capital must be allocated for implementation. Accordingly, all investment activities for new construction, renovation, upgrading, expansion, purchasing assets, purchasing and repairing, upgrading equipment and machinery must use public investment capital, must be included in the medium-term and annual public investment plan, and cannot use regular expenditure funds.

"If understood in the second way, it will lead to problems, because purchasing, upgrading, and repairing activities are arising, diverse, and often unpredictable activities, so it is difficult to plan for a 5-year period," Minister Ho Duc Phoc stated.

Therefore, the Government submits to the National Assembly Standing Committee for consideration and explanation in writing of this regulation to unify the understanding in the implementation organization, especially clarifying whether or not it is allowed to use regular State budget funds allocated annually to carry out construction, upgrading, renovation, expansion, purchase and repair of public assets.
View of the meeting. Photo: Pham Kien/VNA

Presenting the review report, Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh said that the review agency believes that the content in Clause 1, Article 6 of the Law on Public Investment is to classify public investment projects, not to prohibit the use of other capital sources for procurement, minor repairs, maintenance and repair.

"The provisions of the law are clear, but to resolve the Government's concerns about the understanding of this provision, the Standing Committee of the Finance and Budget Committee agreed to submit this content to the Standing Committee of the National Assembly for consideration and comments," said the Chairman of the Finance and Budget Committee.

Accordingly, the Finance and Budget Committee proposes to clearly affirm: Clause 1, Article 6 of the Law on Public Investment stipulates the classification of public investment projects, does not restrict (does not prohibit) the use of other capital sources to renovate and upgrade invested construction projects for repair and purchase of assets and equipment.

Regarding the form, the examining agency proposed two options. Option 1 is that the National Assembly Standing Committee issues a Resolution explaining the law on the above content. Option 2 is to issue a document notifying the National Assembly Standing Committee's concluding opinion on the Government's submission.

Regarding the use of regular funds for projects to upgrade, renovate and repair works and equipment, the Finance and Budget Committee said that the auditing agency proposed that the Government direct ministries and branches to review and base on legal regulations to have regulations and instructions on the use of regular funds from the State budget to ensure clarity, strictness, compliance with regulations, and avoid abuse for unified implementation.

Previously, the National Assembly Standing Committee gave opinions on explaining, accepting and revising the draft Law on Credit Institutions (amended).

After 1.5 days, the 29th Session of the National Assembly Standing Committee has concluded its contents. Concluding the session, National Assembly Chairman Vuong Dinh Hue assessed that the first regular session of the National Assembly Standing Committee in 2024 focused on giving opinions on the contents of preparations for the 5th extraordinary session of the National Assembly. These contents have been basically prepared, meeting the requirements for completion and submission to the National Assembly for consideration and decision. The National Assembly Chairman requested the Secretary General and Head of the National Assembly Office to promptly issue a Notice concluding the Session of the National Assembly Standing Committee.
VNA