Covid-19 epidemic caused global economic recession, the non-state investment capital grew slowly, in order to promote social investment – the engine of economic growth, it is necessary to promote State budget investment. It is a practical solution to effectively realize the dual goal “both preventing Covid-19 and developing socio-economic situation” of the Prime Minister.
With determination to restore and develop the economy in new normal conditions, ministries, branches and localities are making efforts to focus on implementing measures to accelerate disbursement of State budget investment capital. The stormy situation in the central provinces in October greatly affected the construction progress of projects, especially traffic and irrigation projects, so the State budget investment capital estimated at 52 trillion VND, equaling 10.25% of the year plan, insignificantly higher than the rate of 10.15% in September. Generally in the first 10 months of 2020, the realized investment capital from the State budget reached 354.6 trillion VND, equaling 69.8% of the year plan and increasing 34.4% over the same period last year (same period last year 2019 by 68.8% and up 6.7%). Although this result did not meet the expectation of the Government and the Prime Minister, but also an impressive number because it was much higher than the same period of previous years. The disbursement of State budget investment capital has not been achieved as expected, there are many objective and subjective reasons, focusing on the following main reasons: (1) Planning of the State budget investment capital is not close to reality, the ability to allocate capital and the ability to disburse capital leads to not fully allocating the planned capital, many projects are assigned capital plans that are larger than the disbursement capacity; (2) the implementation of site clearance, identification of land origin, establishment of appraisal and approval for compensation unit prices, relocation of utility works, overlapping on construction sites, this is the bottleneck the largest disbursement of public investment capital; (3) Investor is late in selecting contractor, signing contract; (4) Sudden stormy weather in central provinces; (5) The preparation of projects using ODA and concessional loans of foreign donors is not well done, the implementation organization has arisen, must carry out the procedures to extend the implementation period judgment.
Promoting the disbursement of State budget investment capital not only positively affects the economy but also changes the use of State resources towards more accountability and efficiency. For localities across the country, efficient use of capital will bring jobs, improve infrastructure…
Therefore, when the disbursement of public investment is slow, the meaning of promoting public investment in the hard times will be over.