The Government should limit or temporarily stop issuing new Government bonds during the remaining months of the year while waiting for the improvement of public investment disbursement.
(Photo: ndh.vn)
Hanoi (VNA)- The Government should limit or temporarily stop issuing new Government bondsduring the remaining months of the year while waiting for the improvement ofpublic investment disbursement.
According to analysts atBao Viet Securities Company (BVSC), the halt will help the State budget partlyreduce the cost of paying interest for loans that are temporarily not needed.
The recommendation wasmade after reports showed the State Treasury deposits some 160 trillion VND (7billion USD) at commercial banks in the first eight months, up 68 percentagainst early this year, due to sluggish public investment disbursement.
Statistics showed thatcapital mobilised from the issue of G-bonds in the first eight months of thisyear was very positive, however, it was quite a contrast to the disbursement ofthe capital source.
According to the Ministryof Finance, total capital mobilised from G-bonds in the first eight months ofthis year reached nearly 144.1 trillion VND (6.34 billion USD), equal to 78.6 percentof the annual plan.
However, unlike thesuccess of G-bond mobilisation, disbursement of the capital source during theperiod was very slow. Just 2.46 trillion VND was disbursed, equal to only 4.9 percentof the plan.
In a bid to speed updisbursement, Minister of Planning and Investment Nguyen Chi Dung recently senta dispatch to ministries and central and localities to urgently report on theimplementation of Resolution No 70 / NQ-CP, dated August 3, on solutionsto accelerate the implementation and disbursement of public investment plans.
Dung also proposedspecific solutions to effectively implement the public investmentplan, including a resolute cut in capital for projects that are unlikelyto disburse any funds in 2017 and allocate the capital for other important andurgent projects.
The Government will notinclude projects that use State domestic capital budget in next year’s capitalallocation plan if the projects’ disbursement meets less than 30 percent of thisyear’s plan.
Previously, due to theslow disbursement of public investment, including G-bond capital, PrimeMinister Nguyen Xuan Phuc also had to ask authorities to take more drasticmeasures to rectify the late disbursement of investment capital for publicprojects, noting that the slow disbursement of public investment leads to abottleneck in national economic growth and rising public debt.
Thirty ministries andprovinces reported slow disbursement of public investment, mainly due to thelack of proper direction by heads of ministries and localities, in addition toinadequacies of related procedures, slow land clearance and limited capacity ofproject contractors.-VNA
VNA
