With public investment is seen as a key solution to boost economic growth and job creation, faster disbursement of public funds for infrastructure projects is expected from now until the end of the year.
|Construction of Vinh Tuy Bridge Phase 2. Photo: Thanh Hai|
Prime Minister Pham Minh Chinh stressed the view in the latest telegram No.1082/CD-TTg on August 16, calling for the entire political system to step up efforts in pursuing the twin goal of both containing the pandemic and boosting economic recovery.
The move, which came amid the disbursement as of July 31, was at a modest rate of 36.71% of the yearly plan and below the rate of 40.67% recorded in the same period of last year.
Meanwhile, the disbursement of ODA funds and concessional loans was at only 7.52%.
“Low disbursement rate reduces the efficiency of public funds and leads to a waste of resources, in turn impacting economic growth and the implementation of monetary and fiscal policies during the difficult economic situations,” stated the telegram.
While the Covid-19 pandemic and subsequent restriction measures in several localities are seen as key reasons for such slow progress, the telegram also pointed to the inefficient governance in ministries agencies, provinces, and cities.
“The lack of determination and commitment from leaders, delay in site clearance, unharmonious planning, and poor disbursement capability, inefficient cooperation between agencies, are issues that have been known but not resolved completely,” stated the telegram.
For the remainder of the year, the prime minister expected greater disciplinary measures in public investment and strict punishment for those responsible for delaying the disbursement of public funds.
Chinh also requested an explanation from leaders in 34 ministries, ministerial-level agencies, and seven provinces (excluding those under social distancing order) who have disbursed less than 25% in the seven-month period.
Each government agency, ministry, province/city should is expected to set up a task force specialized in speeding up public investment and deal with issues in this regard, with the goal of reaching the disbursement rate of over 95% at year-end.
For the first seven months of 2021, Hanoi’s disbursement rate of public investment rose by 8.4% year-on-year to VND24 trillion ($1.05 billion), or 47% of the yearly plan.
The city expected to disburse 60% of the targeted amount in the third quarter and 100% for the whole year to ensure speedy economic recovery in the post-pandemic period.
In a recent meeting, Vice Chairman of the Hanoi People’s Committee Le Hong Son noted such a move is essential for the city to realize the economic growth target of 7.5% in 2021.