Authorities have pulled the plug on VND3.4 trillion (USD161 million) worth of projects. Minister of Planning and Investment Vo Hong Phuc spoke with Tin Tuc (News) about cutting the State budget.
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| Mr. Vo Hong Phuc |
Why hasn\'t the Government set a specific target for cutting public spending?
It\'s important to emphasise that cutting public investment at this time isn\'t to cut total spending sourced from Government bonds and the State budget, since most of this capital is poured in poverty alleviation in mountain and remote areas, infrastructure, education and healthcare. For this reason, each ministry and local government has been ordered to slash spending on projects not urgently needed for socio-economic development, public welfare or to overcome natural disasters.
What we are also doing is no longer allowing unused capital to be rolled over into the next year. By so doing, we can cut another VND50 trillion (USD2.3 billion) in spending.
What is the progress of ministries and local authorities in implementing Resolution No 11 on curbing inflation?
Most cities and provinces have been very active in re-examining public projects. They are determined not to invest in ineffective, unnecessary projects or projects that have been taking too long to complete.
Still, 22 ministries and localities have not yet submitted reports on their plans to cut spending. We will report the list of those that have not strictly complied so that penalties can be meted out.
What measures will be taken to ensure effective public investment in the long run?
We must restructure investment for greater effectiveness. The private sector will take part in areas in which they have expertise. The State will support the private sector in the form of public-private partnerships to control capital more effectively. In the future, the Government will instruct ministries and sectors to co-ordinate with the private sector in stronger, more methodical manner.
How do we know the right projects are being slashed if the process isn\'t publicised? Who\'s co-ordinating the effort?
We currently allow local authorities to reorganise projects based on the needs of each locality and overall Government guidelines. It is quite right to publicise the name of specific projects, and the southern province of Binh Duong and other southern provinces have done so. But most cities and provinces have not because there are many projects in their localities and they are finding it hard to select the right projects to cut. Under existing law, projects proposed to be cut must be approved by People\'s Councils. Many have not yet undertaken this step, so a list of projects hasn\'t been published.
