New countryside construction programme has successfully deployed in 11 communes in the country for more than one year and has been expanded to other localities. Where and how to get fund sources is challenging because all 11 pilot communes relied on 80 percent of State budget.
Hard to find funding sources
The Prime Minister’s Decision No. 800/QD-TTg provides that capital and capital sources for the programme include 40 percent from central and local budget funds (23 from national target programmes and projects providing targeted funding supports which are being and continue to be implemented in localities in subsequent years, 17 percent from funds for implementation of the programme); 30 percent from credit sources; 20 percent from enterprises, cooperatives and other economic sectors; and 10 percent from contributions of communities.
Mr Do Viet Duc, Deputy Director of State Budget Department under the Ministry of Finance, said: The State Budget has given funding priority to this programme which has initially given a facelift to countryside lives. It has also focused on supporting planning, building roads to beneficiary communes’ centres, standard schools, clinics and administration offices, funding knowledge training for officials in charge of new countryside construction. Beneficiary localities have various sought funding sources for other university.
According to a report released by the Ministry of Finance, the State Budget was estimated to allocate VND370 trillion for agriculture, countryside and farmers in 2012, an increase of 28.1 percent over 2011, higher than overall spending growth of 24.5 percent. Apart from funding new countryside construction programme as in 2011, it will expand finances for other fields like VND1.2 trillion for agricultural insurance, VND3.05 trillion for 62 poor districts (up 48 percent over 2011), VND1,127 billion to forest protection and development programme (up 57.6 percent), VND790 billion for aquacultural, seedling and livestock programme (up 66.3 percent), and VND445 billion for residential resettlement programme (up 29 percent).
Particularly, the central budget will directly allocate VND1,700 billion, including VND1,000 billion of investment capital and VND700 billion of administrative expenses.
According to the Central Steering Committee for New Countryside Construction Programme, the State Budget remains a major source of capital for 11 pilot communes. People and enterprises contribute only 20 percent. Meanwhile, it can afford VND12 trillion for new countryside construction programme in the 2011 - 2015 period, accounting for 11 percent of total capital. This necessitates a diversification of funding sources to successfully realise the new countryside target.
In need of activeness
The Ministry of Finance's point of view is clear. The State Budget gives priority to target communes in five districts and six provinces. Hanoi, Ho Chi Minh City, Binh Duong and Ba Ria - Vung Tau province will not be funded by central State Budget because they can balance their incomes and outgoings.
According to statistics from the Ministry of Agriculture and Rural Development, a farming household has only 0.61 ha of productive land in the country. The rate in the Red River Delta is only 0.35 ha. With this small scale, it is very hard to apply technologies to production to boost productivity.
| According to the Ministry of Finance, the State Budget will spend VND3,470 billion a year from 2012 to 2015, including VND1,732 billion financial support for rice-growing localities and the same amount for rice growers. In particular, the central budget will allocate VND3,316 billion for policy implementation, including VND1,732 billion support for rice-growing localities and VND1,585 billion support for rice farmers. Especially, the State also financed pilot agricultural insurance programme - this is also a necessary step to assure farmers of their cultivation. |
Currently, many localities are not fully aware of the contents of new countryside construction. Therefore, the funding was primarily channelled for infrastructure construction, not production methods to increase incomes for people. For that reason, this programme is not attractive to enterprises and farmers.
Besides, Provincial/Municipal People's Committee is necessarily entitled to base on local realities to regulate capital sources from the State Budget for new countryside projects, instead of being ruled by the central government.
From results reported in 11 beneficiary communes, a representative of the Ministry of Finance noted that it is impossible to attain all new countryside criteria in a short time but it needs a long time. To achieve this goal quickly, it is vital to change the mindset of the people and facilitate enterprises to invest in agriculture.
However, to persuade businesses to come to the countryside, localities must have specific mechanisms and policies on land, resources, capital and other factors. Besides, it is necessary to quickly resolve the contradiction between small production with large markets and the contradiction between low efficiency with high risk. This is the best way to mobilise resources for new countryside construction and to connect farmers, enterprises and market. On the other hand, bringing enterprises to the countryside also generate good opportunity and environment for farmers to adapt to modern way of thinking. Then, agricultural economy will develop, farmers will have better life and incomes, and farming employment will reduce.
Huong Ly
Vietnamese
