National Assembly delegates said that instead of spending 1 quadrillion VND in backlog to support workers, this capital should be put into projects to create economic momentum.
The national budget is currently over 1 million billion VND, as of May 2023. Discussing on May 31, Mr. Tran Anh Tuan, Head of the HCM City Enterprise Management Innovation Board, proposed "flexibly arranging and immediately supporting workers and those who have lost their jobs; or building houses for rent in export processing zones, industrial parks and training and changing jobs for workers". Mr. Tuan believes that this solution will immediately stimulate the economy.
Debate at the discussion session this morning, Mr. Ha Sy Dong, Vice Chairman of Quang Tri Provincial People's Committee, shared Mr. Tuan's impatience and agreed that the capital currently in this budget should be flexibly used.
However, Mr. Dong said that flexibility is in coordinating monetary and fiscal policies and removing administrative procedures to put money in the right place, that is, into important projects, creating momentum for the economy. "If projects that have been and are being prepared for investment, need this source of capital but do not have it, then one waste will sometimes give birth to another waste," he said.
Mr. Ha Sy Dong, Vice Chairman of Quang Tri Provincial People's Committee. Photo: Hoang Phong
The current mechanism allows the State Treasury to optimize temporarily idle capital, but Mr. Ha Sy Dong raised the issue of poor coordination between fiscal and monetary policies in implementing the current priority of reducing lending interest rates in the economy.
"Does the determination of the bidding price and the expected amount of money offered take into account the operational goals of the banking system's liquidity, as well as the capital price level in the money market that the State Bank is pursuing?", the Vice Chairman of the Quang Tri Provincial People's Committee raised the issue, and requested that members of the Government have a satisfactory answer to solve the difficulties for the economy.
Explaining the remaining budget amount, Finance Minister Ho Duc Phoc said that the agency is depositing VND895,000 billion with an interest rate of 0.8% per year at the State Bank and VND130,000 billion in short-term deposits at commercial banks. He said that this is a temporary idle source, already included in the budget approved by the National Assembly for public investment projects and national target programs.
"This amount of money has a detailed plan for the projects. The remaining amount is due to not being used or fully disbursed, not being reserved for spending or allocating to other purposes," said Mr. Phoc.
Speaking on the sidelines of the National Assembly on May 26, Mr. Tran Van Lam, a standing member of the Finance and Budget Committee, said that the backlog of more than one million billion VND in the budget is a waste, and the slow release causes the economy to lose momentum. However, he noted that even though he is impatient, he should not "push" money out at all costs, but should do it step by step, strictly and effectively.
"If spending money causes greater loss and waste, it will be even more painful. We cannot rush into extreme solutions, instead we need to be careful to avoid loss and waste," he analyzed.
Public investment - which is considered the driving force for private investment development - is currently disbursed very low. According to the Ministry of Finance's report, the disbursement rate of public investment capital in the first 4 months reached nearly 14.7% of the annual plan. This level only reached nearly 15.7% of the plan assigned by the Prime Minister and was lower than the same period in 2022 (18.48%). According to the Law on Public Investment, there are new projects that are allocated money, but the "stuck" project preparation stage will lead to the next stages, such as capital disbursement not being implemented.
Minister Ho Duc Phoc said that the law must be amended, one law can be used to amend many laws, including amending the Law on Public Investment to overcome this situation.
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