Public investment plan 2021 – 2025: The transport sector is given the highest priority

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The Government has reported on the proposed medium-term public investment plan for the 2021-2025 period to ministries, central and local agencies.

Accordingly, the total state budget capital under the medium-term public investment plan for the 2021-2025 period is VND 2,870 trillion, including: VND 1,500 trillion of central budget capital (of which VND 1,200 trillion is capital in country, 300 trillion dong of foreign capital) and 1,370 trillion dong of local budget.

The estimated capital for ministries, central agencies and localities for detailed allocation is VND 2,720 trillion. In which, the maximum amount of capital from the central budget to ministries, central agencies and localities is 1,350 trillion VND (domestic capital is 1,080 trillion VND, foreign capital is 270 trillion VND). The allocated local budget capital is 1,370 trillion VND.

The central budget reserve is 10% (equivalent to 150 trillion VND), equivalent to the period 2016-2020. The local budget reserve level shall be decided by the provincial-level People’s Council according to the provisions of Clause 6, Article 51 of the Law on Public Investment.

Plan to allocate medium-term public investment plan for the period of 2021-2025

The plan to allocate public investment plan 2021 – 2025 is divided into central and local budgets.

For central budget capital, specifically domestic central budget capital (1,080,000 billion VND), it is expected that the plan for ministries, central agencies and localities is 910,356 billion VND; expected for 3 national target programs of 100,000 billion VND; estimated for the tasks is 69,643 billion.

Of the expected amount for tasks, VND 4,723 billion is for the Ministry of Transport to pay for the Hanoi – Hai Phong Expressway Project; VND 8,047 billion is expected to recover the advance capital of Vietnam Expressway Development Investment Corporation and Vietnam Development Bank; VND 56,873 billion to arrange reciprocal capital for ODA projects, state contributed capital for PPP projects and other urgent tasks arising in the medium-term public investment plan for the 2021-2025 period.

* The package is applied in accordance with VietinBank’s regulations and policies.

Among the expected tasks, are arranged for the Vietnam Expressway Development Investment Corporation and the Vietnam Infrastructure Development and Financial Investment Corporation in case the Politburo allows the transition from re-lending to allocation; arrange for programs and projects in the process of completing procedures for signing agreements, approving investment policies and arising problems.

Thus, in the period 2021-2025, ministries, central and local agencies are expected to arrange for about 4,979 projects, down more than half compared to the 2016-2020 period, of which 2,236 new projects are started.

The average allocated capital for a project is 210.4 billion VND, 2.4 times higher than in the 2016-2020 period (88 billion VND/project).

The central budget supports localities as prescribed in Article 5 of Resolution No. 973/2020/UBTVQH14 and Clause 3, Article 40 of the 2015 Law on State Budget is VND 233,127 billion, approximately 22.8% of the total domestic central budget investment expenditure. The amount of capital arranged for ministries and central agencies is 1.4 times higher than the capital arranged for localities.

There are 777/2,236 newly started projects (accounting for 34.7%) using central budget capital that have not yet been approved for investment policies and are in the process of completing investment procedures.

In terms of sectoral structure, the total central budget capital is expected to be allocated in the proposed plan for allocating medium-term investment plans in the 2021-2025 period to 13 sectors and fields.

In which, the highest concentration of capital is for economic activities, accounting for 74.1% of the total planned capital; next is the defense sector, accounting for 7.7%; education, training and vocational education accounted for 3.8%; health, population and family account for 3.2%.

Security and social order and safety accounted for 2.9%; activities of state management agencies, public non-business units, political organizations and socio-political organizations accounted for 2%; environmental protection 1.9%, culture and information 1.0%, social field accounted for 0.3%.

The fields of radio, television, news and physical training and sports accounted for 0.3% and 0.4%, respectively; other tasks, programs and projects 0.6%, Science and technology is one of the strategic breakthroughs, accounting for 1.8% of the total central budget plan capital.

In the field of economic activities, transport is the sector that receives the highest priority in allocating planned capital for the period 2021-2025, accounting for 52.3% of the central budget capital and 68.8% of the capital. layout plan for economic activities in the same period.

In terms of regional structure, the total amount of state budget capital (the additional central budget with targets for localities and local budget capital) allocated to localities is 1,682,841 billion VND, which is allocated to regions with the proportions respectively.

The Red River Delta region has the highest with 28% (471,180 billion VND); the second is the South East with 19.37% (325,961 billion VND); the third is North Central and Central Coast 18.74% (315,357 billion VND); fourth is the Mekong River Delta 15.76% (265,135 billion VND); fifth is the Northern Mountains with 12.64% (VND 212,628 billion) and the lowest is the Central Highlands with 5.50% (92,577 billion VND).

The proportion of central budget expenditure to support regions is: the highest in the North Central Coast and the Central Coast at 24.26%, the second is in the Northern mountainous region with 22.89%; the third is the Mekong River Delta 19.36%; fourth is the Red River Delta 16.65%; the fifth is the Southeast region 9.17% and the sixth is the Central Highlands 7.66%.

Regarding the local budget, the capital of the local budget is 1,233 trillion VND. In which, the capital to balance the local budget (excluding revenue from land use, lottery, local budget deficit) in the 2021-2025 period is VND 504,797 billion; investment from land use revenue and lottery is 702,788 billion dong; local budget deficit is 25,414 billion VND.

In the process of administering the medium-term public investment plan, on the basis of the actual annual local budget revenue, the medium-term public investment plan will be adjusted from the unallocated local budget capital (137,000 billion VND).

Source: vietnamfinance.vn – Translated by fintel.vn