Measures for the Administration of National Agricultural Comprehensive Development Funds and Projects

Measures for the Administration of National Agricultural Comprehensive Development Funds and Projects


Measures for the Administration of National Agricultural Comprehensive Development Funds and Projects

Order of the Ministry of Finance No. 29

August 22, 2005

The Measures for the Administration of National Agricultural Comprehensive Development Funds and Projects, which were deliberated and adopted at the executive meeting of the Ministry of Finance on August 17, 2005, are hereby promulgated and shall come into force as of October 1, 2005.

Minister, Jin Renqing

Chapter I General Provisions

Article 1 These Measures are formulated according to the relevant laws and administrative regulations of the state for the purpose of promoting the scientific, systematic and normative administration of national agricultural comprehensive development funds and projects, ensuring the safe operation and effective use of funds and guaranteeing the smooth implementation of projects.

Article 2 The term "agricultural comprehensive development" as mentioned in these Measures refers to the activities in which the Central Government establishes special funds for the comprehensive development and utilization of agricultural resources so as to protect and support the agricultural development, improve basic agricultural production conditions, optimize the agricultural and rural economic structure and enhance the agricultural comprehensive production capacity and comprehensive benefits.

Article 3 The tasks of agricultural comprehensive development are to strengthen the construction of agricultural infrastructure and ecology, enhance the agricultural comprehensive production capacity, and ensure the food security of the state; and to promote the strategic adjustment of agricultural and rural economic structure, promote the agricultural industrialized operation, enhance the agricultural comprehensive benefits, and promote the increase of farmers incomes.

Article 4 The agricultural comprehensive development projects include the projects of land control and the projects of industrialized operation.
The projects of land control include the construction projects of basic farmlands with stable and high yields, the construction projects of bases of grain, cotton, oil and other agricultural products with much predominance, the cultivation projects of fine breeds, the projects of land reclamation and the reconstruction of farmlands with medium and low yields, the projects of improving meadows, control of small river basins, control of land desertification, and construction of ecological forests, and other projects of ecological comprehensive control and the water-saving and supporting reconstruction projects for medium-sized irrigation areas.
The projects of industrialized operation include the projects of agricultural plantation of economic forests, equipment and the plantation and cultivation bases such as the animal husbandry and aquaculture, the projects for processing agriculture products, and the projects for storage, preservation, wholesale markets at the places of production and other circulation facilities.

Article 5 Efforts shall be made to innovate the mechanism, strengthen the administration and implement the administrative mechanism and investment policies suitable for the socialist market economy and public finance for the agricultural comprehensive development.

Article 6 The agricultural comprehensive development shall be subject to an input mechanism of state guidance, supporting input, private operation with governmental help and rolling development.
The following principles shall be adhered to for the arrangement of agricultural comprehensive development funds:
1. giving priority to efficiency with due consideration to fairness;
2. giving prominence to focal points with due consideration to ordinary ones;
3. inputting in a concentrative manner but without leaving any gap; and
4. rewarding the advanced and punishing those lagging behind, and encouraging competition.
The scale of agricultural comprehensive development projects shall be controlled by the capital input, and the agricultural comprehensive development funds shall be managed on the basis of projects.

Article 7 The following principles shall be adhered to for the administration of agricultural comprehensive development projects:
1. planning as a whole according to the local conditions;
2. conducting the scale development and industrialized operation;
3. relying on science and technology and giving priority to benefits; and
4. implementing fair competition and establishing projects by choosing the best.
An agricultural comprehensive development project shall be subject to declaration according to administrative hierarchy.

Article 8 The limits of administrative power and duties of the State Agriculture Comprehensive Development Office (hereinafter referred to as the State Agriculture Development Office) and the agricultural comprehensive development offices (hereinafter referred to as the agricultural development offices) of all the provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning, Xinjiang Production and Construction Corps and General Bureau of State Farms of Heilongjiang Province (hereinafter referred to as the provinces) shall be properly divided pursuant to the principles of unified organization and hierarchical administration.

Chapter II Focus of Support

Article 9 The support of agricultural comprehensive development shall be mainly given to those main agricultural production areas and main grain production areas. Main agricultural production areas shall be determined basing on the output of main agricultural products and the quantity of commodities and by taking the province as a unit.
A province that is not a main agricultural production area shall determine the main agricultural production counties (including the cities not being divided into districts, districts directly under a city, banners and farms, similarly hereinafter) of its own jurisdiction that shall be given key support.

Article 10 The priority of the projects of land control shall, together with the construction of industrial bands of advantageous agriculture products, be given to the reconstruction of farmlands with medium and low yields so as to form basic farmlands with guaranteed yields notwithstanding drought or water-logging and with stable and high yields; and efforts shall be made to adhere to the comprehensive control of mountains, waters, farmlands, forests and roads and the comprehensive matching of agricultural, forestry and water conservancy measures so as to realize the unification of economic, social and ecological benefits.

Article 11 As to the projects of industrialized operation, the industries of advantageous agricultural products with key support shall be determined by referring to the overall arrangement and plans on advantageous agricultural products as set down by the state, and according to the predominance of local resources and the situation of economic development. The degree of agricultural production systematization and the level of agricultural industrialized operation shall be raised through strengthening the construction of the bases of advantageous agricultural products and supporting the leading industrialized enterprises.

Article 12 Key support shall be given to the farmers in the projects of land control.
The objects to be supported by the projects of industrialized operation include the national and provincial leading enterprises of agricultural industrialization (including those leading enterprises as approved by the agricultural development offices at the provincial level) as well as the special cooperative organizations of farmers.

Article 13 The agricultural comprehensive development counties as determined by the State Agricultural Development Office to be incorporated into the scope of support shall be put under the administration pursuant to the principles of gross control, proper receipts and payments, rewarding the advanced and punishing those lagging behind, and hierarchical administration.

Chapter III Fund Management

Article 14 The central treasury may, based on its fiscal strength, increase the agricultural comprehensive development funds year by year.

Article 15 The Ministry of Finance shall, based on the fiscal strengths of all local regions, separately determine the supporting proportion of the local fiscal capital of each province and that of the fiscal capital of the central treasury.
As a general rule, the supporting proportion borne by the provincial treasury shall not be less than 80% of the supporting fund provided by the local treasury. The provincial treasury may, under the premise that the supporting fund provided by the local treasury is ensured, determine different supporting proportions according to the fiscal strengths of districts (including the cities divided into districts, autonomous prefectures and leagues, similarly hereinafter) and counties.
The supporting fund provided by the local treasury at all levels shall be outlaid into the annual fiscal budget of the corresponding level.
The treasury of any key county or township as designated by the state for poverty relief and development does not have to provide financial support.

Article 16 An object to be supported in the agricultural comprehensive development shall have its own input as required.
The capital raising (including the capital exchanged by goods) and labor inputting by the rural collectives and farmers for the projects of land control shall be conducted in strict pursuance to the principles of farmers willingness, acting according to their capacity, democratic decision-making, quantitative control and the principle of whoever that benefits undertakes the burden, and shall be incorporated into the villages mechanism of one discussion for one matter and put under the administration of special items.
The self-raised capital for a project of industrialized operational shall not be less than 50% of the fiscal input.

Article 17 Various methods such as the subsidies, interest discounts and paid support may be adopted for the agricultural comprehensive development so as to absorb financial capital, private capital, industrial and commercial capital and foreign capital to further increase the input into the agricultural comprehensive development funds.

Article 18 The distribution of agricultural comprehensive development funds of the central treasury shall be based on the method of comprehensive factors, and the investment targets of the funds of the central treasury to each province shall be calculated according to the resources and the quality of work.
The investment scale of the funds of the central treasury for the projects of industrialized operation of each province shall be determined on the basis of project declaration.

Article 19 The agricultural comprehensive development funds of the central treasury that are newly increased each year shall be primarily given to those main agricultural production areas, and the agricultural comprehensive development funds of each province shall be primarily given to those main agricultural production counties.

Article 20 As a general rule, 70% or more of the fiscal funds for agricultural comprehensive development shall be used for the projects of land control, and less than 30% of them shall be used for the projects of industrialized operation, and the specific input proportion shall be determined on the basis of the situation of resources and the requirements of economic development of each province.
The scientific and technological input shall be gradually intensified and the proportion of scientific and technological input in the fiscal fund shall be increased for the agricultural comprehensive development.

Article 21 All the funds of the central treasury for the projects of land control shall be gratuitously inputted.
The funds of the central treasury for the projects of industrialized operation shall be inputted by way of paid support together with gratuitous support, giving priority to the paid support.
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