Capital allocation to HCM City too slow

10-Oct-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

The annual allocation of public capital assigned by the central government to HCM City is inappropriate to balance the city’s State budget, and the lengthy review of on-lending loans will result in slow disbursement, said an official at a meeting on Monday.

The city’s vice chair, Tran Vinh Tuyen, chaired the meeting with the representatives of various departments and agencies, reported Nguoi Lao Dong newspaper.

As of late January this year (for the fiscal year 2018 budget), the city had disbursed VND25.9 trillion out of VND34.3 trillion in public capital, fulfilling three-quarters of the target, said Le Thi Huynh Mai, director of the municipal Department of Planning and Investment.

Mai noted that the slow disbursement of official development assistance (ODA) loans from the on-lending fund of the central government was largely to blame for the city’s slower-than-expected disbursement rate.

For this year, more than VND12.8 trillion out of VND33.7 trillion has been disbursed by the HCM City State Treasury as of late September, meeting some 38 percent of the target.

The disbursement of ODA loans from the central government remains a thorny issue as only VND18 billion out of VND3.557 trillion has been allocated, she added.

Though months have gone by, the Ministry of Finance has yet to complete its assessment of an on-lending scheme on ODA loans for the city, leading to delays in disbursement, according to the director.

She added that annual capital plans assigned by the central government had failed to meet the needs of the city. For example, more than VND37.8 trillion was allocated to the city last year, but the municipal government was able to balance some VND30.6 trillion.

However, the rate of disbursement is still being calculated on the assigned amount of capital, she said.

She said her department will collaborate with the HCM City Department of Finance to make frequent reviews and offer advice to the municipal People’s Committee so that the city authority can suggest the central government allocate proper capital to balance the city’s State budget.


Category: Economy, Vietnam

Print This Post