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Jul 28, 2022 / 11:47

Vietnam's disbursement of public funds reaches 35% in a 7-month period

Government agencies need to step up efforts in disbursing public funds in the last months of the year.

Vietnam’s disbursement of public funds during the seven months stood at VND187 trillion (US$8 billion), or 34.47% of the target set by the Prime Minister, according to a report from the Ministry of Finance (MoF).

 Hanoi's Ring road No.3 from above. Photo: Hai Linh

Of the total, funds from domestic sources stood at VND183 trillion ($7.8 billion), or 36% of the plan, and those from   foreign sources at VND4.1 trillion ($175.4 million), or 11.9%.

The MoF noted there has been a slight decrease in the disbursement rate in the January-July period compared to the same period of last year (36.71%); in which the rate of domestic funding expenditure last year was 40.38%, and spending of foreign source funding was 7.52%.

Among the lot, three ministries and 14 provinces/cities recorded a disbursement rate of over 40%; 36 out of 51 ministries and ministerial-level agencies, and 15 out of 63 provinces/cities have disbursed at a rate below 30%.

The MoF called for localities and Government agencies to step up efforts in disbursing public funds, in which leaders of each unit would be responsible for the results.

“Relevant authorities are requested to transfer funds from projects with low disbursement rate to those of higher pace,” noted the MoF, saying provinces/cities are tasked with ensuring effective management of public funds for key projects of high spillover effects for socio-economic development.

As of the end of June, Hanoi disbursed public funds of VND11 trillion ($471 million, or 21.1% of the target). To improve public investment performance, the municipal People’s Committee has issued directive No.10 to urge local units and departments to strictly follow the investment plan and complete projects as scheduled.

Contractors and concerned parties are requested to report back to the People’s Committee on a monthly, quarterly, and annual basis on their disbursement progress.

By the end of 2022, the city aims to fully disburse the target amount for this year, or VND51 trillion ($2.2 billion). Of which, VND34 trillion ($1.46 billion) are for city-level projects and VND16 trillion ($688 million) for district-level ones.

An estimate of VND10.2 trillion ($443.2 million) would be assigned to rural and urban districts for developing their respective infrastructure projects, including the construction of new schools, upgrading of healthcare facilities, and preservation of historical sites, which reflects the city’s attention to supporting the growth at grass-roots levels.