Content of investment capital expenditure estimates for basic construction in Vietnam in 2014

Content of investment capital expenditure estimates for basic construction in Vietnam in 2014 (Illustration image)

To be specific: Article 10 of Circular 90/2013/TT-BTC stipulates that investment capital for basic construction arranged in the 2014 state budget estimates must be concentrated, linked to the restructuring of public investment, and enhanced the efficiency of state budget investment. Ministries, central agencies, and localities when preparing development investment expenditure estimates must closely link with the objectives and tasks of the socio-economic development plan for 2014 and pay attention to the following contents:

- Strictly control the scope and scale of each investment project according to the approved objectives, sectors, and programs; only decide to invest when the funding sources and the ability to balance funds at each budget level have been clearly identified.

- Review projects to determine the list of priority investment projects for 2014 to ensure concentration and efficiency. Specifically:

- Concentrate funds for projects completed, handed over, and put into use in 2013 but have not been fully funded; decisively handle delayed basic construction debts according to Directive 27/CT-TTg dated October 10, 2012, of the Prime Minister of Vietnam;- Prioritize funds for important, urgent projects expected to be completed in 2014 (according to the investment decision schedule, funding balance, and implementation capability in 2014); matching funds for ODA projects as per project implementation schedule; projects using government bonds for the 2012-2015 period but not yet fully funded from government bond sources to complete the project;- Recover advanced funds due for repayment;- Remaining funds to be allocated for ongoing projects as per approved schedule; only prepare investment expenditure estimates for new, truly urgent projects with clearly identified funding sources and funding balance at each budget level, and have to meet full investment procedures as prescribed; fund allocation must ensure the completion of category C projects within 3 years and category B projects within 5 years.

- Prepare investment expenditure estimates from the source obtained from restructuring and rearranging state-owned housing and land according to Decision 09/2007/QD-TTg dated January 19, 2007, and 140/2008/QD-TTg dated October 21, 2008, by the Prime Minister of Vietnam.

- Ministries, central agencies, and localities entrusted with projects using government bond funds should proactively assess and consolidate the implementation of government bonds in 2013, including projects authorized by competent authorities to advance government bonds for 2014, prepare plans for utilizing the remaining bonds for 2014-2015 to repay advanced budget funds and ensure project completion as per the plan, and submit to the Ministry of Planning and Investment, the Ministry of Finance to report to the Government of Vietnam for submission to the National Assembly.

- Project owners of projects invested from government loans for re-lending must arrange sufficient matching funds for these projects according to the signed agreements and domestic financial management regulations to not affect implementation progress.

- For the subsidy expenditure estimates offsetting the development investment credit interest rate difference, state policy credit, based on the 2013 implementation situation and expected changes in 2014 policies and tasks to prepare expenditure estimates according to the prescribed policies.

- For national reserve supplement expenditure estimates: Based on the national reserve targets and tasks assigned, the requirements to prevent and mitigate the consequences of natural disasters, epidemics, ensure security, defense, and social welfare, responsible ministries, sectors managing national reserve goods must assess and determine the national reserve level managed by ministries, sectors, units as of December 31, 2013; estimate the national reserve level by type of goods, essential materials, equipment; prepare state budget expenditure estimates for national reserve augmentation, goods preservation, and the plan for rotating and renewing national reserve goods for 2014.

Details can be found in Circular 90/2013/TT-BTC, effective from August 14, 2013.

Le Vy

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