A new mechanism for State appropriations will be required to help clamp down on corrupt practices and give more decision-making power to provincial authorities, said Minister of Planning and Investment Bui Quang Vinh.
The proposed mechanism went before the Government earlier this year, the minister told a web dialogue on the Government portal last week. If this mechanism is adopted, the Government will publicize all appropriations for provincial authorities, ministries and ministerial-level agencies each year.

It is the chairmen of the cities and provinces and the ministers who will be responsible for allocating public funds to approved projects, he said. “This mechanism will help cope with the ask-and-favor practice, a source of corruption.”

The ministry has also suggested the Government issue a decree on medium-term investment and development in 2013-2015. Particularly, the ministry has recommended the Government allocate funds the provinces and state agencies for a period of three years.

This way lets the provinces know how much they will receive in the next 3-5 years so that they can devise effective spending plans, said Vinh. “No one can say for sure that there will be no corruption at their agencies. The point is to have a determination, measures and a management mechanism to thwart corrupt practices.”

Regarding the involvement of State enterprises in business areas where the private sector can do a good job, Vinh said this was a legacy of the past. He explained that after the country was unified, the State corporate sector played the leading role in all fields as the private sector was then underdeveloped.

In 2001-2005, State investments accounted for 53.4% of the total in the economy while those of the private sector made up just 32.6%. Minister Vinh said the proportion of public investments would be lowered to 37-39% and those of the private sector will rise to 45-46% in 2011-2015.

He said the State would focus only on public services, national defense, security and remote areas and that the State would join hands with private investors through public-private partnership (PPP) investments.

SGT