What are the guidelines on capital allocation in the first year of the medium-term public investment plan that has not been approved in Vietnam?
Is it proposed to issue additional regulations on capital allocation for medium-term public investment plans that have not been approved in Vietnam?
According to Section 6 of Official Dispatch 5015/CV-TCT 2022 guiding the implementation of public investment projects as follows:
Under the provisions of Article 53 of the Law on Public Investment, the conditions for allocating annual capital plans for programs, projects, tasks, and other public investment objects are:
- Programs, projects, tasks, and other public investments must be included in the medium-term public investment plan, except for urgent public investment projects.
- Programs, projects, tasks, and other public investments must be authorized by a competent authority.
However, in practice, since the first-year medium-term public investment plan has not been approved, it is challenging to allocate capital. It is suggested to add provisions to Article 53 as follows:
- The allocation of public investment capital for the first year of the subsequent medium-term public investment plan is based on the National Assembly's Resolution on the first year's public investment capital plan from the state budget and the Prime Minister's Decision on assigning the public investment plan for the first year. The first year's public investment plan will be consolidated into the subsequent medium-term plan and presented to the new National Assembly for review and decision at its first session.
What are the guidelines on capital allocation in the first year of the medium-term public investment plan that has not been approved in Vietnam? (Image from the Internet)
What are the guidelines on capital allocation in the first year of the medium-term public investment plan that has not been approved in Vietnam?
According to Section 6 of Official Dispatch 5015/CV-TCT 2022 guiding the implementation of public investment projects, the Special Working Group of the Prime Minister's Office guides as follows:
Under the provisions of Clause 1, Article 60 of the Law on Public Investment 2019:
Submission, representation, approval and assignment of tasks of medium-term public investment plans using the state budget's capital
1. In the year-end meeting held in the fifth year of the National Assembly's tenure, the Government shall propose the medium-term public investment plan for the subsequent period to the National Assembly to get its opinions on contents thereof specified in Article 49 herein; in particular, with respect to the first year’s public investment plan for the subsequent period, based on the estimate of the state budget’s capital expenditures in the first year, the Government shall submit it to the National Assembly to seek its decision issued in this meeting.
2. According to opinions of the previous National Assembly, the Government shall present to the current National Assembly in the meeting the contents specified in Article 49 herein. The National Assembly shall consider issuing its decision on the medium-term public investment plan, including the following contents:
a) Aims and objectives of medium-term public investment of the state budget’s capital to be made on a nationwide scale;
b) Gross investment capital listed in medium-term public investment plans using the state budget’s capital, including the capital of the central government’s and local government’s budget;
c) Gross investment capital included in the medium-term public investment plan using the central government’s budget capital specific to sectors, industries, estimate of capital amounts allocated to specific Ministries, central regulatory authorities and target transfers from the central government's budget to the local government's budget;
d) Investment portfolio and investment capital of public investment projects of national significance and national target programs;
dd) Main solutions and policies for implementation of medium-term public investment plans.
3. The Prime Minister shall assign tasks of medium-term public investment plans, including total capital and structure of the state budget’s capital, to Ministries, central and local regulatory authorities; investment portfolio, capital of public investment programs and projects, capital used for performing planned tasks, investment preparatory tasks and other public investment objects using the central budget's capital.
Thus, the capital allocation in the first year of the medium-term public investment plan that has not been approved is fully regulated in the Law on Public Investment 2019.
What are the contents of reports on medium-term public investment plans submitted to competent authorities to seek their approval in Vietnam?
According to Article 49 of the Law on Public Investment 2019:
Contents of reports on medium-term public investment plans submitted to competent authorities to seek their approval
1. Review of progress in and outcomes of implementation of the medium-term public investment plan existing in the previous stage.
2. Socio-economic development objectives; mid-term sector- and industry-specific investment objectives and investment structure directions. Classification by specific sectors or industries shall be subject to provisions enshrined in the Law on State Budget.
3. Capabilities of calling for and balancing funds; estimated gross investment in carrying out socio-economic, sector- and industry- specific midterm development goals and tasks, including funds for carrying out planning tasks, investment preparatory tasks, project execution tasks and repayment of advances and other borrowings granted by local banks for investment purposes.
4. Total state budget capital in the medium-term public investment plan, including the central budget’s capital, the local budget’s capital; the central budget’s gross capital specific to sectors, industries and proposed transfers to specific Ministries, central regulatory authorities and target transfers from the central budget to the local budget, with respect to reports presented to the National Assembly. Total capital of each entity allocated the public investment plan using the local budget specific to sectors, industries and target transfers to the inferior budget with respect to reports presented to People's Councils at any level.
5. Principles and criteria for allocation of capital from the medium-term public investment plan.
6. Arranging public investment projects in order of priority, selecting the investment portfolio and capital allocated to specific public investment projects in the midterm period to ensure relevance to capabilities of balancing public investment capital and calling for other funding sources for the purposes of carrying out goals, tasks and directions in the 5-year socio-economic development plan.
7. Measures for implementation and expected outcomes.
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