Reducing Public Investment in 2013

The latest documents, which the Ministry of Planning and Investment has sent to ministries, ministerial-level agencies, government agencies and other agencies on the allocation of budget and government bonds in 2013, focus on "limit in the number of new projects."

 

Specifically, according to the Ministry of Planning and Investment, the principle of capital allocation in 2012 was to prioritize funds for national target programs in some areas including national defense, border security programmes, island security, agriculture, forestry, fisheries, major projects of national importance, and reciprocal capital for ODA projects.

 

The allocation of capital will have to ensure concentration, overcoming the spread, loss and waste, improving the efficiency of investment, thus contributing to the objectives of restructuring public investment.

 

In terms of capital allocation priority, the budget will be allocated to projects completed before 2012, which are on the list for capital allocation but not yet provided with adequate capital, projects scheduled for completion in 2013 and reciprocal capital for ODA projects in accordance with project progress. At the same time, sufficient capital is prepared to repay the advanced capital in central budget of 2013 according to the Prime Minister's decision to allow advances in 2012.

 

In particular, the government will "limit the initiation of new projects" and only allocate capital for newly started projects which are really necessary after having refunded advance capital and allocated sufficient capital for projects completed before 2012 and transfer projects.

 

New projects in the 2013 investment plan must be included in the approved plan, the task of the state budget, approved and evaluated under the Directive 1792/ CT-TTg issued on 15 October 2011 by the Prime Minister. Simultaneously it is essential to identify capital sources and the ability to balance the budget in each level to make sure the project construction be on schedule and avoid wasting and loss of budget.

 

In terms of government bond funds, the rule is to allocate sufficient funds to repay the advanced capital of government bonds in 2013 and other decisions of the Prime Minister in 2012 to provide advanced capital for 2013. The fund is also provided to projects completed and put into use. In addition, fund priority is given to projects scheduled for completion in 2013.

 

Based on the above principles, the Ministry of Planning and Investment proposed that ministries, departments and localities map out a plan for development investment funds and government bonds in 2013 and submit a report on this to the ministry and Ministry of Finance prior to the 10 November 2012.