To ensure early allocation of capital construction investment

The implementation of Resolution No. 32/2010 / NQ-HDND7 dated Dec 10^th 2010 of provincial People’s Council on principles, criteria and norms for allocation of capital construction investment from provincial state budget in the 2011-2015 (Resolution No. 32/2010 / NQ-HDND7) has achieved good results. In the 2016-2020 period, the province has developed a draft of principles, criteria and norms for allocation capital construction investment from provincial state budget in accordance with regulations and local actual situation. The draft was devised with the spirit of ensuring a appropriate allocation without giving rise to pending projects and meeting the basic investment needs for provincial socio-economic development.

To basically meet the investment needs

According to the draft report on the implementation of Resolution No. 32/2010 / NQ-HDND, total funds decentralized to districts was VND4,415 billion. Nguyen Thanh Truc, Director of provincial Department of Planning and Investment, said the department advised PPC to specify principles, criteria and norms for allocation of capital construction investment from provincial state budget in the 2011-2015 according to the directions of Decision No 60/2010 / QD-TTg dated Sep 30^th 2010 of the Prime Minister.

The project of 30-4 Street in Ben Cat town was completed and put into use

Key principles of decentralization of investment funds were based on socio-economic development and infrastructure development tasks of each area in the province to define targets and specific funds. In particular, funds allocated according to criteria were concentrated mainly on Thuan an town, Di An town, and TDM City, because these were areas with high population, economic growth, annual budget revenues, and political, administrative, urban centers of the province.

In addition, performing the administrative boundary to split Tan Uyen and Ben Cat district into 2 new districts (Bau Bang and North Tan Uyen) and 2 new towns (Tan Uyen and Ben Cat), in 2014, the fund allocation for the 4 new localities was based on the administrative boundary split and investment locations. The allocation also guaranteed the budget balance and met the basic needs for socio-economic development of each area.

According authorities, principles and criteria for allocation of capital construction investment have proved its effectiveness, helped the government at all levels to efficiently distribute resources, contributing to narrowing the gap between localities, improving manager’s accountability to the state budget.

Being consistent with the actual situation

However, according to a draft report on the implementation of Resolution No. 32/2010 / NQ-HDND7, in recent years, provincial localities were not really proactive in budget balance, relied much on provincial supports; approved too many projects, causing lengthen construction time. In addition, allocation criteria were not really consistent with the actual situation of each locality…

The draft principles, criteria and norms for allocation of capital construction investment in the province in the 2016-2020 was devised based on five main criteria: the average population; the level of development (including poverty rate criteria and inland revenue criteria); natural area; commune-level administrative units; additional criteria (including political center, urban renovation, provincial budget adjustment rate).

According to this draft, in the 2016-2020, total funds allocated according to criteria in the province was estimated at VND7,250 billion with an average increase of 11.84% / year. In particular, the average increases in specific district levels are TDM City with an average increase of 10.92% / year, Thuan An town 12.07% / year, Di An town 11.34% / year, Tan Uyen town 15.7% / year, Ben Cat town 14.12% / year; Bau Bang district 13.15% / year, North Tan Uyen 10.6% / year, Phu Giao district 10.6% / year, and Dau Tieng district 10.24% / year.

Thus, the average growth rate of allocated funds to Ben Cat town and Tan Uyen town is higher than the remaining areas, because the two localities new urban areas that need more investments in infrastructure development. Criterion of urban renovation was not applied to the two localities. Meanwhile, allocated fund to TDM City was lower than Thuan An and Di An town, because of low inland revenues and population; and the province has invested strongly in infrastructure of the city. Fund to Bau Bang district was also high, because the district is boosting industrial production, attracting a large labor source, leading to the increasing investment needs.

Reported by P.Le – Translated by Ngoc Huynh