Mon, 15th Apr 2024 12:11 (GMT +7)

Disbursement of public investment capital a top priority: MoF

Tuesday, 23/01/2024 | 09:07:04 [GMT +7] A  A

The Ministry of Finance highlighted the need for a robust disbursement of public investment capital in 2024, requiring a serious and resolute approach to promote disbursement according to government regulations.

Ministry of Finance's headquarters in downtown Hà Nội. VNA/VNS Photo

In an official communication (Official Letter 405/BTC-ĐT), the Ministry of Finance has directed ministries, sectors and localities to allocate and input budget estimates into the Budget and Treasury Management Information System (TABMIS). The aim is to disburse planned public investment capital from the state budget in 2024.

The ministry highlighted the need for a robust disbursement of public investment capital in 2024, requiring a serious and resolute approach to promote disbursement according to government regulations. Specific instructions include detailed fund allocation in compliance with the State Budget Law and the Public Investment Law.

In this context, a thorough review and centralised fund allocation without dispersion were recommended. Funds should be allocated in priority order to the right projects and tasks that have completed investment procedures and demonstrate the capacity for timely disbursement. The focus is on directing planned capital for 2024 to crucial national projects, avoiding dispersion, and refraining from allocating funds to projects incapable of disbursement.

Further instructions involved expediting investment procedures, project design and estimation reviews, and timely approval of bidding results and contract signings for projects and new packages slated for implementation in 2024. Coordination with contractors immediately after contract signings is stressed to ensure advance payment procedures are implemented promptly, allowing contractors to prepare necessary conditions, materials and equipment for construction work.

Addressing compensation, support and resettlement, the MoF called for the active involvement of the entire local political system. Specific tasks and responsibilities are to be assigned to each unit, with a focus on strengthening propaganda and mobilisation efforts, especially in explaining legal provisions on land compensation prices and compensation policies. Timely reporting of specific challenges and obstacles in compensation, support and resettlement work is also emphasised to prevent delays or lack of allocated funds.

Fund transfers

The ministry proposed transfers of funds from projects with slow disbursement to projects that have been settled and completed but lack funds, or demonstrate good disbursement progress. Localities are entrusted with the responsibility of managing and utilising transferred funds from key projects, ensuring effectiveness in line with legal regulations.

Recognising the disbursement of public investment capital in 2024 as a central task for the entire political system, the MoF urged a continued emphasis on leadership responsibility for directing, supervising and urging disbursement. Public announcements of implementation results by each unit, linking disbursement results with performance evaluations, and appropriate measures for cases not meeting the plan were encouraged. Recognition and encouragement of exemplary cases in overcoming challenges and accelerating progress were also highlighted.

The MoF recommended urgent implementation of detailed allocation of state budget investment plan funds for 2024 by ministries, sectors, and localities. This included funds allocated to tasks and projects meeting conditions for capital allocation as per current laws and government regulations. The submitted information serves as the basis for the Ministry of Finance to verify the allocation and payment of the state budget investment plan for 2024.

Considering the Economic Recovery and Development Program in 2023, allowing funds adjustment between tasks and projects, ministries, sectors and localities are required to determine annual repayment amounts for 2024 and 2025. This is to align with the National Assembly's resolution, ensuring full repayment by 2025 as planned for tasks and projects under the program.

The Ministry of Finance reports the deployment of TABMIS for 2024 from level 0 to level 1 for central ministries and agencies, with ongoing deployment from level 0 to level 4 for localities. Circular 123/2014/TT-BTC of the Ministry of Finance, guiding TABMIS organisation and operation, emphasises timely budget estimate entry to facilitate approval and disbursement estimates for projects.

For allocated funds to recover advance capital, ministries, sectors and localities were instructed to complete budget estimate entries immediately after receiving capital allocation decisions. Simultaneously, project owners are directed to coordinate with the State Treasury for prompt implementation of advance capital recovery procedures and payment accounting.

In cases of funds allocated for basic construction debt repayment or transitional projects to be completed in 2024, budget estimate entries should be completed promptly after receiving capital allocation decisions. Ministries, sectors and localities are responsible for instructing project owners to follow assigned plans, complete payment procedures, and submit them to the State Treasury for control and payment.

For newly initiated projects, ministries, sectors and localities are instructed to guide project owners in completing account opening procedures and issuing the unit's budget relationship code. This facilitates budget estimates for projects meeting allocation conditions as prescribed.

Source: Vietnam News