VietNamNet Bridge – The HCM City People’s Committee has decided to penalise all departments or localities that end up with less than 50 per cent of their budgeted public spending for this year.

The HCM City People’s Committee has decided to penalise all departments or localities that end up with less than 50 per cent of their budgeted public spending for this year.— Photo vietnaminsider.vn

City Party Secretary Nguyen Thien Nhan had earlier warned about low public spending.

At the end of October spending on transport and anti-flooding measures had been low.

The Department of Transport has been allocated VND4.5 trillion for 454 projects this year, but only 58 per cent of it had been spent in the first 10 months.

“Delayed ground clearance and poor management of projects were the two major reasons for the situation,” Bui Xuan Cuong, director of the department, told Người Lao Động (Labourer) newspaper.

The Steering Centre for Anti-Flooding Programme has a VND1.13 trillion budget for 106 projects, but spent only 53 per cent.

“Under current regulations, [we] must have the money in hand before starting other works like bidding, design and deployment,” Nguyen Hoang Anh Dung, deputy director of the centre, said. He was referring to the fact that as a result his agency could not actually implement any project in the first few months.

“We often take three or four months for bidding and design. And funding will only be disbursed after the contractors start building.”

Tan Binh District had spent only 5.3 per cent as of the end of October, followed by Binh Thanh District with 10 per cent and District 1 with 22 per cent.

Hoang Song Ha, vice chairman of the Binh Thanh District People’s Committee, explained that at the start of the year, no work could be done because the city had not approved payment of compensation for lands.

After the city had approved the compensation rates, disbursement increased to 95 per cent, he said.

Phan Thi Thang, director of the Department of Finance, speaking about failure to spend the full budgeted amount, assured: “The city will not suddenly pull the plug on delayed projects.”

She said departments and localities should carefully consider how much money they need in a year and how they can effectively use the amount to avoid waste.

HCM City People’s Committee chairman Nguyen Thanh Phong has decided that leaders, investors and related officials will not be paid bonuses if they achieve less than 90 per cent of public spending by December 31, and will be punished if the rate falls below 50 per cent.

“In 2019, public spending will be closely watched from the beginning of the year to prevent spending of less than 90 per cent,” he said.

“This is one of the 10 most important tasks for 2019.”

Source: VNS