Recently, three departments, including the Ministry of Finance ("MOF"), have jointly issued the Interim Measures for Management of Subsidies for Food and Drug Regulation (the "Measures"), immediately effective from the date of issuance.
Major contents of the Measures, comprised of 18 articles that are presented as a whole but not divided into chapters, touch upon the following aspects. The first is clearly defining the term "subsidies" and the scope of expenditures. The second is setting out departmental responsibilities. The third is regulating the distribution and allotment of subsidies. And the fourth is ramping up regulatory measures over budget performance management and other matters. Among others, the Provisions stipulate that the subsidies will be offered for a period of five years, and whether such subsidies will continue upon expiration of such five-year period, and if so, for how long the subsidy policy will be renewed, will be assessed, in line with relevant provisions of the State Council and according to the situation of food and drug regulation. In addition, the Measures state that subsidies will be distributed under the factor method, and distribution factors, their respective weight and detailed formulas for weight calculation are also made clear. Meanwhile, procedures and time limits in relation to submission of performance goals and distribution of subsidies, and requirements concerning fund payments, management of fund carrying-forward and surplus, and government procurement, are clearly specified, pursuant to provisions on budget management, such as the Budget Law.