With 434 votes of favor (equivalent to 89.48%), the 14th National Assembly on November 12 passed a medium-term public investment plan for the 2016-2020 period and a resolution on adjustments to the medium-term public investment plan.
Under the resolution, total foreign capital in medium-term public investment will be adjusted up from VND 300 trillion to a maximum of VND 360 trillion, while domestic capital will be reduced correspondingly to meet disbursement requirements of projects using foreign capital. Capital for important national projects is reduced to VND 70 trillion from the initial VND 80 trillion.
The NA allows the use of the common reserve fund of the medium-term public investment plan for 2016-2020 on the basis of ensuring the annual State budget’s balance and maintaining the ceiling for public investment at VND 2,000 trillion along with the overspending rate and public investment safety as decided by the NA.
The NA allows localities to allocate annual public investment plan using capital from local budget on the basis of collection while ensuring that it will not surpass the allowed overspending rate.
Under the new resolution, the People’s Councils at all levels are allowed to decide the reserve allocation of the medium-term public investment plan for 2016-2020 using local budget in line with principles and priorities as stipulated in the Law on Public Investment and the NA’s Resolution 26/2016/QH14 on the medium-term public investment plan for 2016-2020.
The NA decides to spend VND 10 trillion from the adjustment in capital for important national projects to allocate for projects on natural disaster prevention and mitigation, strengthening key dykes, dealing with riverbank and coastline erosion, and moving residents from areas with high risks of flash floods and landslides.The rest of budget would be spent on siteclearance.
The resolution asks the Government to remove obstacles in the implementation of the Resolution 26/2016/QH14 and accelerate the pace of allocation and disbursement of public investment capital./.