As of December 7 the treasury raised more than 280 trillion VND by auctioning Government bonds, achieving the target for the year. (Photo doanhnghiepdautu.net) Hanoi (VNA) - By December 7, the treasury had raised more than 280trillion VND by auctioning Government bonds, achieving the target for the year.
But the money raised hasbeen used at a slow pace.
According to a recentannouncement by the Vietnam State Treasury, by November only 659.39 billion VND(29.6 million USD) had been used, without including debt repayment, provisionof aid, additional expenditure and risk provision. The amount accounted foronly 78.8 percent of the year’s spending estimate.
Of the figure, capitalexpenditure was 217.51 billion VND, making up only 64.3 percent, much lowerthan in the same period the previous year.
The Ministry ofTransport is one of the ministries that did not use even half the amountallocated for 2016.
In fact, it wasallocated 25 trillion VND raised from Government bond issuances, but has todate spent only 40 percent of it.
This is diametricallyopposite to the situation that existed until a few years ago when ministrieswould clamour for more funds, which would often not be forthcoming.
Most sectors had greatdemand for funds to carry out their projects.
A treasury official saidthe agency was always ready to provide money for projects that merited then.Why then was the disbursement too slow last year?
Many analysts this onthe slow progress of public investment plans due to tortuous investment andconstruction procedures.
There are overlapping, inconsistent,incompatible and even contradictory regulations in documents guidingimplementation of the Investment Law and in investment decrees.
Another reason is thatthe Law on Public Investment took effect only in 2016, meaning many ministriesand agencies were struggling to fully understand its sub-laws.
Faced with thesituation, the Government issued Decree No 60/NQ-CP on major tasks andsolutions to accelerate implementation of and release of funds for publicprojects.
It requires allministries and local authorities to review and perfect legal frameworks so thatthey dovetail with the country’s laws and quickly remove all hindrances tospeed up disbursement of funds for public projects to ensure they proceed onschedule.
The treasury for itspart has promised to release capital for qualified projects within four days.-VNA
