Public investment capital insufficient to meet all needs

01-Nov-2018 Intellasia | The Saigon Times | 6:26 AM Print This Post

Mid-term investment capital for public projects in the 2019-2021 period is expected to run short of some VND60 trillion. Meanwhile, funding from government bonds is thinly spread instead of being channeled into key projects as every locality has been allocated capital for their own projects, said National Assembly (NA) deputies on Monday.

Deputy Nguyen Truong Giang of the Central Highlands province of Dak Nong pointed out the reasons behind the shortage of the investment budget used to execute the financial plan for the 2009-2021 period.

He cited a mid-term report of the government as saying that central budget capital would provide VND414.5 quadrillion for public projects, while its capital allocations would amount to an estimated VND475.4 quadrillion in the next three years.

The possible shortfall of some VND60 trillion does not include capital from a coastal road project, where the investment format was changed from a public-private partnership to State budget investment.

Further, instead of issuing G-bonds worth VND60 trillion, the government plans to take foreign loans aligned with specific projects.

According to Giang, projects funded by G-bond issues will likely suffer capital shortages. He urged the government to assess its investment capital sources carefully.

He said that the NA’s Resolution 26 on the medium-term public investment plan for the 2016-2020 period must be properly executed. More specifically, capital reserves should be used only when the revenue sources of the State budget are as planned or to meet crucial, urgent and force majeure objectives.

The government’s plan to use this source of capital reserves for debt payment is unreasonable, he said.

Deputy Vu Thi Luu Mai of Hanoi said the mid-term public investment plan could have been disrupted because every locality has at least one public investment project.

Mai suggested that the total investment for the 2016-2020 period has amounted to VND2 quadrillion, which has been allocated to 9,620 projects of all scales. She said many projects are now in financial distress.

Meanwhile, deputy Hoang Quang Ham of Phu Tho Province pointed out that the allocation of investment capital from the central State budget for the remaining two years runs contrary to the Law on Public Investment. He said that the allocation would be ineffective and would create an ask-and-give mechanism.


Category: Economy, Vietnam

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