Many localities nationwide have shown hesitation as far as reducing or suspending projects using state budget funds, according to the Ministry of Planning and Investment (MPI).
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| Many localities nationwide have shown hesitation as far as reducing or suspending projects using state budget funds, according to the MPI |
By late August this year, the country had cut VND6.53 trillion (USD313.9 million) in public investment. Of that sum, the country suspended construction of 1,206 projects worth VND3.76 trillion (USD180.76 million), while reducing and transferring capital of 897 projects totaling VND2.76 trillion (USD132.7 million).
A general report showed that, cities and provinces have still allocated VND1.736 trillion (USD83.46 million) funds for 638 projects which should not be allowed to be implemented in 2011.
Localities also haven\'t reduced capital for another 2,000 projects using public money. Construction on these projects continues.
The MPI has proposed that the Government revoke the entire state budget, estimated at VND337.6 billion (USD16.23 million), which was allocated to be used for projects which still lack investment procedures, or that are not legally allowed to go forward. This sum would be transfered to the Ministry of Defense’s island development programmes.
For the capital of VND1.736 trillion that cities and provinces have allocated for their project implementation, the MPI has proposed that the localities use the funds to compensate advances already given by the State to ease budget problems.
In the case that this money is not spent on advances, the capital must be transferred to the \'preventitive budget, which would be used for \'urgent\' projects.
Under the Government’s Resolution 11, issued in February, localities are requested to reduce public investments for projects which are not urgent, in order to control inflation. This year, Vietnam will attempt to limit the budget deficit at below 5% of the GDP, and curb credit growth to below 20%.
