Steady progress in the integration and coordination of agriculture-related funds

This year's Central Document No. 1 set out clear requirements for the integration and coordinated use of agriculture-related funds. Advancing the integration and coordination of agriculture-related funds is both an objective requirement for standardizing the management of agriculture-related funds and improving the efficiency of their use, and a necessary means of improving the budget management system and deepening the reform of the fiscal and taxation systems. It is of great significance for establishing a modern fiscal system and promoting the transformation of government functions.

In recent years, the Party Central Committee and the State Council have continuously increased their efforts to strengthen agriculture, benefit farmers and enrich rural areas, and have formulated and issued a series of policies and measures that have promoted the sustained and stable development of agriculture and rural areas. However, as investment has continued to increase, problems such as agriculture-related funds being issued through multiple channels, being scattered and piecemeal, being spread evenly, and being sprinkled like pepper have become increasingly prominent. This is not conducive to concentrating resources to accomplish major tasks and has affected the efficiency of the use of agriculture-related funds.

To explore ways to advance the integration and coordination of agriculture-related funds, in recent years finance departments at all levels have innovated mechanisms and actively explored and implemented a series of effective measures. For example, they have carried out integration in links such as budget preparation, allocation and execution, built platforms for the integration of agriculture-related funds, encouraged local areas to advance integration in light of local conditions, and established consultation mechanisms for the use of agriculture-related funds. In particular, in 2013, with the approval of the State Council, the central government finance authorities launched the pilot integration of agriculture-related funds in Heilongjiang Province's "two major plains," carrying out experiments in source-based integration of agriculture-related funds, promoting the scientific arrangement and coordinated use of agriculture-related funds, effectively improving the efficiency of funds and fully giving play to the policy effects. Although the integration and coordination of agriculture-related funds has achieved certain results, due to institutional and mechanistic obstacles, past integration was still limited integration, and there is an urgent need to advance it from a higher level, at a deeper level and over a broader scope.

Establish a system in which authority over affairs and expenditure responsibilities are compatible, and create an atmosphere conducive to integration and coordination. Implement the spirit of the Third Plenary Session of the 18th Central Committee of the Party, further optimize the government organizational structure, straighten out the relationship among departmental responsibilities, and accelerate the transformation of government functions. At the same time, correctly handle the relationship between government and market and between government and society, fully give play to the role of market mechanisms, and avoid the phenomena of government "offside" and "absence." Improve the division of authority over affairs and expenditure responsibilities between the central and local governments, and on the basis of clearly defining authority over affairs, further adjust and improve the expenditure responsibilities of the central and local governments. Strive to establish and improve a system in which authority over affairs and expenditure responsibilities are compatible, and create favorable conditions for the integration and coordination of agriculture-related funds in terms of institutions and mechanisms.

Steadily advance integration in the budget preparation link, and carry out the sorting out and merging of agriculture-related funds from the source. Budget preparation is the first gateway for the integration of agriculture-related funds, and integration and merging should be carried out from the "source." First, gradually expand the scale of general transfer payments, substantially reduce agriculture-related special transfer payment items, cancel special items in competitive fields and local fund matching, and strictly control guidance-type, relief-type and emergency-type special items. Second, scientifically and reasonably sort out and merge agriculture-related special transfer payments. Of course, under the current institutional and mechanistic framework, agriculture-related special transfer payments are not better the simpler they are, nor better the fewer they are; rather, according to the actual needs of agricultural and rural economic and social development, agriculture-related special transfer payments should be reasonably set up in accordance with the principle of "retain what should be retained, cancel what should be canceled, and merge what should be merged." Third, advance the genuine integration of merged agriculture-related projects. For bundled and assorted merged projects, management measures after integration must be promptly formulated, and allocation and management must follow one set of measures, rather than simply carrying out formalistic integration.

Actively support the carrying out of pilot experiments in integration, and explore and innovate effective ways to integrate agriculture-related funds. Continue to advance the pilot work on the integration of agriculture-related funds in Heilongjiang Province's "two major plains," promptly summarize experience and carry out assessments. At the same time, encourage and guide areas with the conditions to carry out experiments in the integration of agriculture-related funds in light of local conditions. Fully respect the pioneering spirit and practical experience of the grassroots, and further mobilize the initiative and enthusiasm of local areas in carrying out integration. Support local areas in actively exploring various effective ways to carry out integration within the framework of existing policies and systems, so that a hundred schools of thought contend and a hundred flowers bloom.

Further streamline administration and delegate power, and promote the delegation and reform of the approval authority for agriculture-related projects. In recent years, the central government finance authorities have actively promoted the delegation of project approval authority. Most agriculture-related project approval authority has gradually been delegated to the provincial level, and some has even been delegated to the county level, but the central government still retains approval authority for a few agriculture-related projects. In accordance with the requirements of deepening the reform of the administrative approval system, the central government's management of micro-level affairs must be reduced to the greatest extent possible. On the one hand, matters that directly face the grassroots, are large in number and broad in scope, and are more convenient and effective to manage locally should all be delegated to local and grassroots management. On the other hand, act in accordance with market laws; for all economic activities that market mechanisms can regulate, fully give play to the role of the market in allocating resources, and actively promote mechanisms such as government procurement of services and PPP (public-private partnership).

Consolidate existing integration platforms, and strengthen the institutional and mechanistic safeguards for the integration of agriculture-related funds. First, continue to use advantageous and distinctive industries, key counties for small-scale farmland and water conservancy, "vegetable basket" production, high-standard farmland construction, and comprehensive poverty alleviation as platforms to integrate and coordinate the arrangement of agriculture-related funds and concentrate resources to accomplish major tasks. In particular, strengthen the revitalization of surplus agricultural funds and carryover funds exceeding the prescribed time limit, and coordinate their use within a time limit to support the construction of farmland and water conservancy and other projects. Second, consolidate the results of county-level integration of agriculture-related funds, increase the intensity of agriculture-related fund integration at the provincial level, and establish and improve a coordination and linkage integration mechanism among central and local levels at all levels. Third, finance departments at all levels should actively give play to their role, strengthen communication and coordination, and establish and improve a consultation mechanism for the integration of agriculture-related funds that is led by the government, headed by finance departments, and involves the cooperation and participation of relevant departments. Fourth, strengthen the institutional development of the management of agriculture-related fund integration, standardize and strengthen oversight of the use of agriculture-related funds after the delegation of project approval authority, and in particular strengthen oversight of special poverty alleviation funds, clearly implement local oversight responsibilities, give play to the oversight role of the grassroots, and ensure the safe and effective operation of funds.