Disbursement of nearly 300,000 billion VND in public investment capital after half a year

According to a report from the Ministry of Finance, as of June 25, ministries and localities disbursed public investment capital of about 299,501 billion VND, an increase of nearly 3,500 billion VND compared to the end of May. This number does not include 5% of local budget capital reserved for implementing the Lao Cai – Hanoi – Hai Phong high-speed railway project.

The public capital management agency said that disbursement progress was accelerated at the end of June. Particularly from June 19 to 25, disbursed capital reached 35,276 billion VND, 1.8 times higher than the level of the previous week.

The Ministry of Finance reports that 7 ministries, agencies and 20 localities have disbursement rates from the national average or higher. Among them, some ministries and localities have large disbursement amounts (over VND 15,000 billion) such as the Ministry of National Defense, the Ministry of Public Security, Hanoi City, Ho Chi Minh City, and Hai Phong.

Besides, 26 ministries, agencies and 14 localities disburse below the national average rate. Of these, 5 agencies disbursed less than 1%, including the Vietnam Cooperative Alliance, the Ministry of Ethnic Minorities and Religions, the State Bank, the State Audit and the Government Office.

This year, the total public investment capital plan in the country is more than 1.04 million billion VND, including about 13,600 billion VND from local budget balance. In particular, the capital plan assigned by the Prime Minister is more than 1,026 million billion VND.

Ministries, branches and localities have allocated about 1 million billion VND in detail, equivalent to 96.8% of the plan assigned by the Prime Minister. About 32,945 billion VND, equivalent to 3.2% of the plan, has not yet been allocated in detail by the units. According to the Ministry of Finance, most of this capital was just added in June or adjusted by agencies for other projects.

Public investment is determined by the Government to play a leading role, activating private capital and FDI flows, promoting production and business. This source of money helps increase total social investment capital, supporting rapid and sustainable growth. According to calculations, in the period 2021-2025, disbursed public investment capital increases by 1%, GDP can increase by 0.058 percentage points.

At the conference in April, Prime Minister Le Minh Hung affirmed that the Government identifies public investment as an important driving force to achieve double-digit growth goals, synchronous infrastructure development and open up new development space. Therefore, public investment must be accelerated in disbursement, along with ensuring project quality and capital use efficiency.

The Prime Minister assigned the Ministry of Finance to research and develop a scoring plan (KPI) for implementing the task of disbursement of public investment capital. Ministries, branches and localities, especially leaders, must identify disbursement of public investment capital as a “top priority task”.