HCM City cracks the whip to speed up public spending hinh anh 1HCM City is seeking to speed up spending on public projects after many districts reported slow rates so far this year (Photo: VNA)

HCM City (VNS/VNA) - Ho Chi Minh City is seeking to speed up spending on public projects after many districts reported slow rates so far this year.

A report tabled at a recent meeting chaired by Vice Chairman of the municipal People’s Committee Tran Vinh Tuyen showed only 26 percent of the funds earmarked for this year of 33.17 trillion VND (1.42 billion USD) had been disbursed in January-July, far below the target of 50 percent.

Only 13 districts of the 24 districts had a disbursement rate of over 50 percent. District 11 had the lowest rate of 4 percent.

A District official said the outlay for this year was 101 billion VND (4.35 million USD), mainly for four key schools and children’s cultural houses. The district received the money late, resulting in slow disbursement, he explained.

Nguyen Thanh Phuong, Deputy Chairman of the Phu Nhuan People’s Committee, said the district had disbursed only 13 billion VND out of 88 billion VND planned to disburse this year.

The money for some large public projects, including upgrades to the district People’s Committee office, had been delayed this year, he said.

He blamed the slow spending on tardy land acquisition for some projects, delayed completion of administrative procedures and slow final settlement in other projects.

But the district would disburse 95 percent by year-end, he said.

According to district leaders, since usually land compensation is paid in September and October, the disbursement rate is very high in the latter part of the year.

Tuyen asked why the disbursement rate was different in each district, saying while he understood that each is in a different situation, their leaders need to again review the reasons for slow disbursement.

He instructed the leaders of the 11 districts with disbursement rates of less than 50 percent to submit to the HCM City People’s Committee reports on each project, explaining the reasons for the slow progress and suggesting solutions to speed up disbursement.

He also called on all project management boards to carefully manage their funds.

The Vice Chairman instructed the Department of Planning and Investment to organise a seminar in October to discuss the management of the State budget.

Tuyen wanted the Department of Natural Resources and Environment to work with the Ministry of Natural Resources and Environment to reduce the time it takes to pay compensation for land and resettlement assistance.   

This would reduce the time taken to acquire land and speed up work, thereby also speeding up public spending, he added.-VNS/VNS