Nation seeks effective public funding course

A large public investment capital volume towards 2030 has been set, with project numbers to be slashed to ensure disbursement effectiveness.

- By Thanh Dat

The National Assembly (NA) in late April adopted a resolution on middle-term public investment for the next five years. Under the resolution, total funding is $328.8 billion, 35 per cent more than the 2021-2025 period.

Of this, central budget capital is fixed at $152 billion, and local budget capital sits at $176.8 billion.

According to the resolution, the overarching goal of the medium-term plan is to enhance the effectiveness of public funding, generate spillover effects, and mobilise the maximum non-state capital for development.

The plan also aims to reinforce the role of public investment as one of the key growth drivers, while completing a synchronised and modern system of strategic infrastructure in service of economic development goals.

The government reported to the NA that for the central budget, allocations shall comply with the Law on Public Investment, prioritising national target programmes, approved national projects, defence and security tasks, initiatives under the Party Central Committee’s action programme, and inter-regional ventures.

A contingency reserve tantamount to 10 per cent of the total for 2026-2030 is set aside. Notably, the number of projects must be reduced by at least 30 per cent compared to the previous period.

Meanwhile, for local budgets, localities are allowed to take the initiative in deciding on investments in line with planning and resources.

Capital allocation from local coffers must be focused on, with the number of schemes also to fall by at least 30 per cent compared to 2021-2025. This funding must be prioritised for inter-regional, inter-provincial, and inter-communal projects of significance.

From now until 2030, public investment is set to account for 20-22 per cent of total development capital. The expenditure makes up as much as 40 per cent of total state budget spending.