HCM City tries to avoid budget losses
Le Van Trung, a member of the council, said the delay of 66 projects had "caused a huge waste" to the budget. He said continuation of these projects would require an additional VND2.85 trillion (US$160 million). Progress had been impeded by the delays in site clearance, a lack of funds, long approval procedures, and poor allocation of funds.
"The compensation rates for agricultural land have also slowed down several projects," said deputy Le Hong Hoanh, director of the municipal Agricultural and Rural Development department. "Many farmers refused to relinquish their land because of the low rate."
Truong Van Lam, a council member, said compensation rates differed, depending on how the land would be used. With such a broad range of rates, farmers and others were reluctant to give up their land. Lam suggested that rates be pegged to land prices in the real estate market.
Huynh Cong Hung, deputy director of the council’s Economic and State Budget Committee, said he believed that there were no lacks of funds and that delays were due to poor project management at the district level.
Several districts lacked staff to manage projects, including 262 in Can Gio, 155 in Nha Be and 169 in Tan Phu last year.
Council member Nguyen Ngoc Hoa said city project management was also weak, citing the VND20-trillion in funds received this year from the Government that the city had yet to administer effectively.
Construction approval procedures also took too much time, with three years needed to receive a licence to build a student dormitory, Hoa said. Council member Dang Xuan Dung recommended that the city focus on projects that needed funds the most.
"Why is it necessary to replace pavement that could be used for another three to four years at a time when the city has a shortage in the budget?" he said. Lam said he believed the budget shortage of VND24 trillion ($1.3 billion) was due primarily to the Government’s policy on tax exemptions. He said some projects should be discarded and that urgent ones given top priority.
