Current situation of management of allocation of investment capital from the

of the province's capital construction expenditure; Expenditure from land use and other sources was 465,900 million dong, accounting for 42% of the provincial capital construction expenditure. By 2014, the estimated expenditure for capital construction is 1,212,910 million dong, in which the capital construction investment from the addition from the central budget is 647,910 million, accounting for 53% of capital construction expenditure of the province; Central construction expenditure, from land use right and other sources is 565,000 million, accounting for 47% of capital construction expenditure of the province.

In terms of budget revenue, only about 30% of the expenditures spent on annual expenditure. The province has made the most use of capital from the central budget (accounting for over 50% of capital expenditure in the province annually) to implement national target programs, new rural construction programs, consolidation and upgrading of sea dykes from Quang Ninh to Kien Giang and upgrading of river dykes. As allocation of capital from the supplementary capital of the central budget must be carried out in accordance with the provisions of the higher level authority on the list of works, the level of capital allocated annually, the preparation and allocation of capital of local government is sometimes only a formal procedure. For other local capital sources, although the allocation of investment capital has been in line with the State's regulations, the province's socio-economic development planning orientation, due to limited investment capital, in adequate infrastructure, the allocation of capital has specific shortcomings: the allocated capital for each project is spread out, there are not many big projects that are key projects for economic development in the area; Decentralization is only applied in investment capital from land use fee for district and commune budgets; The criteria and norms for strong decentralization of investment capital for district and commune budgets have not yet been developed.

3.3.2.Current situation of management of allocation of investment capital from

disbursement becomes an urgent requirement. The province has concentrated on directing the drastic implementation with many solutions, focusing on regularly organizing the progress of the meeting, on-site briefings, timely detecting and dealing with difficulties and problems, especially land issues, land clearance, procedures and documents; at the same time, intensify the inspection and urge for investors and strictly implement regulations on transfer of capital for delayed works and projects. Disbursement information through specific years is presented below (Table 2.4):

In 2011, disbursement of capital construction expenditure: 1,822,821 million VND, reaching 164% of the yearly estimate; in which: concentrated capital construction: 258,634 million, reaching 100% compared to the year's budget;

Expenditures from land use: 447,635 million dong, 221% compared to the beginning of the year; Expenditures from additional sources from the Ministry of Agriculture and Rural Development: 926,052 million, reaching 144% of the yearly budget; Expenditure from credit and other sources: VND 190,500 million.

In 2012, the situation of management of capital construction expenditures in the province has been better, disbursement of capital construction expenditure:

VND 2,155,271 million, reaching 202% of the yearly estimate; Of which:

concentrated capital construction: 267,788 million, reaching 107% of the year's budget; Expenditure from land use: 489,498 million VND, gaining 171% of the yearly estimate; Expenditure from additional sources from the Ministry of Agriculture and Rural Development: 1,184,485, equivalent to 226% of the yearly budget; Expenses from credit and other sources: 213,501 million dong.

In 2013, disbursement of capital construction expenditure: 2,283,429 million dong, reaching 185% of the yearly budget; in which: centralized capital construction: 282,498 million dong, accounting for 121% of the yearly budget;

expenditure from land use: 487,950 million dong, reaching 146% of the yearly budget; Expenditures from additional sources from the Ministry of Agriculture and Rural Development: 1,107,981 reaching 169% of the yearly budget; Expenditures

In 2014, disbursement of capital construction expenditure: 2,327,289 million dong, equivalent to 192% of the yearly budget; in which: concentrated capital construction capital: 287,482 million, reaching 115% of the yearly estimates;

Expenditures from land use: 643,576 million dong, reaching 204% of the yearly estimates; Expenditures from additional sources from the central budget: 1,046,231, reaching 161% of the yearly budget; Expenditures from credit and other sources:

350,000 million dong.

During this period, to overcome difficulties in disbursement in the context of tightening public investment and to curb inflation, the Provincial People's Committee has directed the establishment of Site clearance Steering Committee for districts and cities; Organize the signing of commitments on the quality and progress of implementation of works and projects which have been allocated annual plan capital; Organization of capital construction meetings quarterly; Direct the provincial State Treasuries to fully recover the investment capital advances but not implement capital advances which have been overdue.

Regarding to the control of investment capital through the State Treasury in the locality: In general, the control over investment capital through the State Treasury was done relatively effectively, during the process of control, favorable conditions have been created to Investors from the budget and, in particular, partially reduce capital outflows in capital construction expenditure.

According to the assessment report on control and payment of capital construction investment capital of Nam Dinh State Treasury, since the implementation of the public administration reform program, Nam Dinh State Treasury has coordinated with local authorities, Department Finance, Department of Planning and Investment (to effectively implement the state budget expenditure control in the province, especially in the payment of investment capital. Payment procedures and processes have been transparent, every unit has been guided and required to comply with the State's regimes and norms. Proactively coordinate with other departments, advise the provincial People's Committee on measures to accelerate the disbursement of capital construction investment. At the same time,

reduce administrative procedures for distributing, disbursing, saving time and costs of agencies and organizations. The capital accumulation and capital expenditure at the end of the year has been basically eliminated. Contribute effectively to practice of thrift, combating wastefulness and fulfilling socio-economic targets in the area.

Currently, the procedures and processes for payment of capital construction investment capital have been more and more complete, simple and clear and at the same time attach specific responsibilities to each unit in the management of investment capital. Especially, there is strong administrative reform in the management mechanism. The State Treasury controls payment according to the process of control and payment of investment capital, which has been revised from pre-inspection to post-inspection in order to create favorable conditions for investors in accordance with the State's regulations.

However, in the process of controlling the payment of capital construction investment capital, there are still many inadequacies. Due to the change in capital management mechanism, many investors do not have time to get familiar such change. On the other hand, the completion of the legal dossier sent to the State Treasury of some investors still have problems due to low qualifications and capacity of some investors, thus, the dossiers must be regularly amended and supplemented. Response time for a project regardless of scale is 7 days, thought he travelling for communication between the client and the staff of the State Treasury is significantly reduced, this is a large work pressure for cadres to receive applications for large projects, easily lead to the lack of responsibility in the process of receiving dossiers and the inspection of the control of capital construction investment of the state budget.

Current situation of advance capital plan in Nam Dinh province is still in place. Currently, according to the Ministry of Finance's Circular 86/2011 / TT-BTC dated 17 June 2011, the maximum level of advances for works is 50% of the contract value, which is quite high. High rate of advance will lead to the holding of capital under other forms to make profits; or using capital for other business

especially budget capital is taken advantage of, thus making the budget capital ineffective (in 2013, the capital advances are up to more than 110 billion dong). At the same time the advance capital so high that the control department faced many difficulties in the process of urging investors to settle the project.

3.3.3.Current situation of management of development investment expenditure