>> Localities hesitate to cut public investment

Public investment coming under National Assembly supervision was among three top issues discussed by the National Assembly (NA) Standing Committee.

Public investment proposed for the National Assembly supervision 2012

Two other issues, land complaint, denouncement and compensation and implementation of legal policies on the Vietnam Social Insurance Fund’s management, will be addressed at the second session of the NA scheduled to open this week.

The majority of the NA Standing Committee’s members said that the public investment should be closely monitored in 2012 to reduce public spending. They consider it one of the keys to getting the national debt and inflation under control. Many agreed that a large number of public investment projects have not achieved their purposes.

NA Chairman Nguyen Sinh Hung suggested that through supervision of public investment areas such as agricultural and rural development could be prioritised.

According to the Ministry of Planning and Investment, many localities nationwide have shown hesitation as far as reducing or suspending projects using state budget funds, despite the Government’s instruction to reduce public investment for curbing inflation.

By late August this year, cities and provinces allocated some VND1.736 trillion (USD83.46 million) for 638 projects, which should technically not be allowed.