Public fund disbursement slowed by local leaders' reluctance

By Anh Minh August 9, 2022 | 08:24 pm PT

Construction of a road project in Thua Thien Hue Province is pictured in July 2022. Photo by VnExpress/Vo Thanh

Public spending has been tardy again this year, with only 34.5% of earmarked funds spent as of July, and the government blames local leaders for it.

This is 2 percentage points lower than in the same period last year, Minister of Planning and Investment Nguyen Chi Dung told the National Assembly Standing Committee Tuesday.

The problem has persisted for the last seven or eight years, but there are particular reasons for it this year, he said.

The spending plan for 2021-25 was only approved in July 2021, which slowed down many projects, he said.

Local leaders are reluctant to deal with land clearance, compensation and investment procedures due to the complications of the process, delaying projects, he said.

The soaring prices of construction materials (20% on average) have caused many contractors to suspend work and wait to see if the government would modify their projects, he said.

But he was optimistic and said spending would top 92% of the outlay this year thanks to the government’s plans to address these issues.