The Ministry of Agriculture and Rural Development has decided to adjust the allocation of public investment into the agriculture sector in 2011 in response to a Government call for more efficient spending.
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Government Resolution No 11, which was issued on February 14, targets the curbing of inflation, stabilisation of the macro-economy and social security.
The cut in public investment will help reallocate capital to more important and urgent projects while helping curtail the budget deficit, according to Deputy Minister of Agriculture and Rural Development Hoang Van Thang.
The move will see 21 projects with investment from the State budget postponed, saving VND48.268 billion (USD2.3 million).
Thirteen projects will be suspended once they complete their preparatory period, eight others will be slowed, and two others will be postponed for the foreseeable future, according to the ministry.
According to the ministry\'s plan in 2011, VND104.73 billion (USD5 million) in capital will be saved.
Domestic investment for four projects, which are receiving financial assistance from ODA funding, will not be cut.
Projects which are under completion, or construction to prevent natural calamities, will be given priority, according to director of the ministry\'s Department of Planning, Trang Hieu Dung.
VND66.468 billion (USD3 million) from the capital saved will be given to complete 16 projects in 2011, while VND16 billion (USD761,000) will be spent on three urgent projects including the National Seafood Breeding Centre, which will receive an additional VND9 billion (USD428,000).
The ministry\'s tranche sourced from Government bonds totals VND3.5 trillion (USD167 million), which only meets 51 percent of total demand, said Thang.
The chairman of the central province of Thua Thien-Hue People\'s Committee, Nguyen Van Cao, said the province planned to cut 10 of 47 projects, saving VND16.2 billion (USD771,000).
The ministry also ordered the reviewing and termination of inefficient and unfeasible projects across the whole agricultural sector.
