NA deputy Nguyễn Văn Mạnh from northern Vĩnh Phúc Province addresses the National Assembly (NA)'s sixth session on Wednesday. VNA/VNS Photo

HÀ NỘI – During the sixth session on Wednesday, National Assembly (NA) deputies suggested that stronger measures should be taken to address challenges and expedite the disbursement of public investment funds while deliberating on the socio-economic development plan for 2023 and the projected plan for 2024.

Deputy Nguyễn Đại Thắng from northern Hưng Yên Province stated that during the past nine months, ten out of 15 set targets were achieved and exceeded the NA’s goals. However, all three key drivers of economic growth fell short of expectations.

In particular, public investment disbursement yielded positive results but lacked breakthrough progress, failing to fulfill its vital role in boosting economic growth.

Thắng said to achieve the highest GDP growth target for 2023, this sector needed to contribute even more significantly to promote business production and increase the overall economic demand.

The deputy recommended that the Government direct the relevant ministries to allocate budget resources for project planning to ensure that once funds were allocated, the implementation would proceed smoothly.

He also proposed that the Government continue to direct ministries, departments, and local authorities to take measures to overcome obstacles in the land clearance process and the supply of construction materials for multiple projects to expedite the disbursement of public investment funds.

"Announcing construction material prices should be timely and aligned with market prices, especially for key road transportation projects," he stated.

In addition, Thắng said the Government should devise solutions to promptly overcome obstacles in the implementation of real estate projects and establish policy mechanisms to encourage the development of affordable housing projects.

He also suggested that the Government should consider issuing a separate resolution to pilot specific incentive policies related to taxes, land, credit, and administrative procedures to stimulate production and business activities.

Deputy Tạ Văn Hạ from central Quảng Nam Province stated that one of the factors contributing to the slow public investment disbursement was the fear and reluctance of officials to act.

Acknowledging the importance of reviewing legal regulations, the deputy pointed out that there was a lack of consistency in the interpretation of certain legal issues and regulations among officials responsible for enforcement and those overseeing the process.

Using an example, Hạ explained that when determining the land value in cases of misconduct, there were differing opinions on whether the value should be determined at the time the case was initiated or at the time the incident occurred.

Hạ emphasised that the lack of uniformity in legal interpretation caused hesitation among officials. He stressed the need for a comprehensive review and study to ensure a consistent understanding of legal documents.

Additionally, in the process of drafting legislation, it was essential to use plain language that allowed citizens to easily access, comprehend, and adhere to the law consistently, he added.

The NA’s Finance and Budget Committee acknowledged that the completion of mid-term investment planning procedures has been excessively slow.

Despite multiple recommendations by the NA's Standing Committee prior to the allocation of mid-term public investment plans over the past three years, 7 per cent of the mid-term public investment plan was still pending allocation due to projects lacking the necessary investment procedures. This has led to delays in fund allocation, impacting the disbursement progress and the effectiveness of investment capital.

Furthermore, the implementation of national target programmes has faced slow fund allocation. A shortage of comprehensive guidance from central ministries and departments has delayed localities in implementing national target programmes.

Several delegates also highlighted this recurring issue, in which the process of formulating State budget investment plans was not aligned with the implementation capacity.

They also highlight the persisting weakness in the preparation of investment projects, where the process was often initiated only when there was available funding, rather than following the regulations of the Public Investment Law.

This led to the continuation of the problem of funds awaiting projects with complete procedures, significantly impacting the allocation schedule, the provision of budget plans, and the implementation process.

Furthermore, the deputies said, this issue arose from the lack of attention from various ministries, departments, and localities in terms of using the budget allocated for this planning period to prepare for projects in the subsequent planning period.

Harmonising fiscal and monetary policies

Mentioning fiscal and monetary policies for economic development during challenging periods, deputies proposed the Government, ministries, and localities focus on comprehensive fiscal and monetary policies, in which prioritised fiscal policies, especially those with special mechanisms, including tax policies for revenue from corporate income tax in certain export sectors.

This also included VAT refunds to release and unblock capital, providing liquidity to businesses, and the implementation of suitable credit policies tailored to the specific characteristics of each industry and sector.

They also said identifying the main production and export sectors of the economy was necessary to provide preferential credit packages for businesses in these sectors.

The ministries and localities should make efforts to reduce costs and minimise intrusive inspections and audits that create difficulties and complications for businesses.

They suggested the Government actively develop and implement comprehensive solutions to ensure national energy security and enhance capacity and the quality of long-term petroleum supply forecasts. Electricity, as a vital energy source for both production and consumption, should be ensured.

They also suggested urgently implementing effective demand-boosting measures. This would create a positive psychological effect and instill more confidence in domestic and international investors in the potential and economic recovery of the country. – VNS