Opinions of the State Council on the Policies and Measures for Supporting the Recovery and Reconstruction after the Wenchuan Earthquake

Opinions of the State Council on the Policies and Measures for Supporting the Recovery and Reconstruction after the Wenchuan Earthquake


Opinions of the State Council on the Policies and Measures for Supporting the Recovery and Reconstruction after the Wenchuan Earthquake

Guo Fa [2008] No. 21

June 29, 2008

The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, ministries and commissions of the State Council, and organizations directly under the State Council,

The Wenchuan Earthquake has caused material losses to the people's life and properties and economic and social development in Sichuan Province, Gansu Province and Shaanxi Province. In order to support and assist the attacked area to carry out self-relief production and rebuild their home, encourage and guide all parties of the society to participate in the recovery and reconstruction after the disaster, and recover the normal production and living order in the attacked area as early as possible, opinions on relevant policies and measures of supporting the recovery and reconstruction after the Wenchuan Earthquake are hereby given as follows:

Article 1 Guidelines and basic principles
1. Guidelines
Guided by the Deng Xiaoping Theory and the important thought of "Three Represents", thoroughly fulfilling the scientific development conception, persisting in human-orientation, fully exploiting the political advantage of the socialism of concentrating powers to do major things, calling for support from all over the country for recovery and reconstruction after the disaster, making overall plans, organizing carefully, determining the policy, enhancing guarantee, focusing on key points and providing classified instructions, and endeavoring to achieve the maximum benefit and the best effect to the satisfaction of the people in the disaster area and of the people all over the country.
2. Basic principles
(1) All-round support, and focusing on key points. The support under the policies and measures covers all aspects of recovery of production and reconstruction after the disaster. Simultaneously the focus shall be put on supporting the reconstruction and recovery of the collapsed and damaged houses of rural and urban residents, public service facilities and infrastructures.
(2) Overall planning, coordinating and cooperating. Comprehensively applying policies of finance, taxation, banking, industry and employment, making overall plans of and coordinating various central and local capital such as financial input, counterpart support and domestic bank loan, guiding proper use of various donations, and conducting proper connection, reasonable coordination and cooperation among policy arrangement, capital input and reconstruction plan.
(3) Tailoring measures to suit local conditions, and providing classified guidance. Different guidance shall be given to different reconstruction and recovery target based on seriousness of the attack. Support emphasis shall be put on the area seriously attacked; recovery and reconstruction of public service facilities and commonweal infrastructures shall rely mainly upon government investment supported by other investment such as social donations; production recovery and reconstruction of enterprises of industry and commerce shall be mainly self-relived by using the market mechanism with policy support by the country in finance and taxation and bank credit funds to be driven.
(4) Based on self-relief, and supported by all parties. Fulfilling the guideline of united effort to help the victims, working hard and being self-reliant, combining self-relief with state support and social help, encouraging and developing the enthusiasm of all parties including the officials and the masses, taking foot on self-relief, and promoting the recovery and reconstruction.
(5) Great efforts and simple methods. Based on serious losses and hard recovery and reconstruction in the attacked area, policy support shall be strengthened and oriented in accordance with the law, and shall be scientific, simple, convenient to operate and easy to implement simultaneously.

Article 2 Main contents of policies and measures
1. The Central Finance shall establish the fund of post-disaster recovery and reconstruction.
In order to support the recovery and reconstruction in the attacked area, coordinate and guide various funds, the central finance shall establish the fund of post-disaster recovery and reconstruction, which shall be mainly funded by the general central budget income. Proceeds from state-owned capital, special revenue of vehicle purchase tax, the central public lottery welfare funds and the part of the central finance 's share of the use fee for newly-added construction use land used for reconstruction shall also be incorporated in the fund. The Central Finance shall arrange a post-disaster recovery and reconstruction fund of RMB70,000,000,000 in 2008 , and shall make arrange otherwise in 2009 and 2010. The use structure of special fund of the current budget shall be adjusted to give special consideration to the attacked area simultaneously.
While the central financial input is enhanced, funds like financial input, counterpart support, domestic bank loans and international organization loans shall also be planned for use. Various donation funds shall be allocated reasonably and used in a normalized way to improve the efficiency of the funds. The attacked areas, especially Sichuan Finance, shall mainly focus on establishing a post-disaster recovery and reconstruction fund in accordance with the measures of the Central Finance.
2. Finance expenditure policy
The central finance shall resume funds expenditure to support the recovery and reconstruction of clasped and damaged houses of rural and urban residents, public service facilities and infrastructures and the resumption of production and reconstruction of industry and agriculture on the principle of "Overall planning, focus-orienting, classified guidance and responsibility for special use" and through personal subsidy to residents, subsidies to project investment, input of enterprise's capital and soft loans.
(1) Reconstruction of collapsed and damaged houses. For rural families whose houses were collapsed, seriously damaged and who are homeless, the central finance shall, on principle, provide a RMB10,000 subsidy for each family in the construction of their new houses. Rural families whose houses were damaged otherwise shall receive proper amount of subsidies.
For urban families whose houses were collapsed, seriously damaged and who are homeless (including the staff of the organs, enterprises and institutions under the Central Government in the attacked area), the central finance shall provide support by subsidies to project investment and personal subsidies to the residents. The attacked area may, based on the actual circumstances, organize building social houses for sale or lease to qualified families; the government shall afford to build certain low rent houses to lease to qualified families with a low rent; families buying houses (including houses for low-income families) or solving the housing problem by other means shall be subsidized according to certain standard. Houses of residents are identified as in need of reinforcement and danger elimination shall be provided with proper subsidies.
(2) Public service facilities recovery and reconstruction. For the recovery and reconstruction of public service facilities such as facilities of education, health and grass-roots organs of state power, the capital shall, on principle, be borne proportionately by the central finance and the treasury of the attacked areas, among which, the departments under vertical administration of the Central Government (including directly subordinated public institutions) shall be under the charge of the Central Finance. Simultaneously, the funds from counterpart support and social donations shall take the priority to be used in the construction public service facilities of education and health.
(3) Production Resumption and reconstruction. For resumption of production and reconstruction of the state-owned backbone enterprises directly under the Central Government managed by the State-owned Assets Supervision and Administration Commission, providing support by capital injection to certain proportion of the investment for recovery and reconstruction after disaster or by providing soft loans. The capital injection shall be arranged out of the proceeds from state-owned capital.
For production resumption and reconstruction of military industrial enterprises and institutions of the Central Government, the Central Finance shall provide support by subsidies to project investment or soft loans.
For production resumption and reconstruction of local industrial and commercial enterprises and tourism enterprises, except for soft loan to the key industry of the seriously attacked area provided by the Central Finance, in principle, the local government shall be responsible for determining the capital support measures.
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