Vietnam plans to outlay 2.87 quadrillion VND (124.5 billion USD) on public investment in the 2021-2025 period, up 120 trillion VND compared to the previous estimate.
|Renewable energy facilities funded by public investment under construction in Ninh Thuan Province. (Photo: VNA)|
The information was released at a meeting on medium-term public investment chaired by Prime Minister Pham Minh Chinh on May 24.
Of the total, 1.38 quadrillion VND is sourced from the central budget and 1.37 quadrillion VND from local budgets.
The Ministry of Planning and Investment said the rise in public investment capital has been sourced from savings from recurrent expenditures that will not increase total budget spending.
Speaking at the meeting, PM Chinh asked for the elimination of scattered, fragmented, and unplanned investment and cumbersome procedures in order to promote the efficiency of public investment projects.
He also suggested saving on recurrent expenditures in order to use the budget for development purposes, with a focus on projects serving social security, health care, natural disaster prevention, and other matters.
According to the Ministry of Planning and Investment, the 6,447 public investment projects planned for the 2021-2025 period has been cut to 5,397 and will come down to around 5,000.
Compared to the 2016-2020 period, the budget allocated to localities in the 2021-2025 period will not only give priority to supporting disadvantaged, mountainous, border, and ethnic minority areas but also ensure the development of pillar regions.
Public investment in the period will focus on the country’s key projects and those with a pervasive impact, especially those related to digital transformation, digital economy, and digital society.
Specifically, the Government will spend an appropriate amount on addressing shortcomings in urban development.
Vietnam is to continue speeding up disbursement of public investment, with a focus on infrastructure development, in a bid to spur on economic growth and create more space for private enterprises.
The 13th National Party Congress is expected to set the country’s average annual growth rate of 6.5-7 per cent from now until 2025, when Vietnam may become a higher middle-income nation.