Major Water Conservancy Projects Receive Strong Support from Lou Jiwei
"The Ministry of Finance will earnestly implement the national water governance strategy and the requirements of relevant resolutions of the National People's Congress, effectively transform its functions, comprehensively deepen reform, strive to remove the institutional obstacles facing water conservancy construction and development, and focus on building a long-term mechanism for financial support of water conservancy development." This was stated by Minister of Finance Lou Jiwei yesterday when delivering the State Council's report on the investment and use of national fiscal water conservancy funds at the 12th session of the Standing Committee of the 12th National People's Congress.
Lou Jiwei said that in recent years, the use and management of fiscal water conservancy funds has generally been good, but the following main problems still exist: First, the investment and financing system and mechanism for water conservancy are still not perfect. Public water conservancy facilities still mainly rely on fiscal investment, and a market-oriented investment and financing mechanism for water conservancy has not yet been fully established. Second, funds in some fields are managed by multiple authorities. Especially in rural water conservancy construction, the funding channels and management departments involved are numerous, and the overlapping, duplicate, and dispersed use of funds coexist, affecting the overall efficiency of fund use. Third, investment control in some large and medium-sized water conservancy projects is not strict. Large and medium-sized water conservancy projects have long construction periods and many unforeseeable factors. Due to rising prices during the construction period, policy adjustments, and other reasons, the actual investment in some large and medium-sized water conservancy projects (Caiyuan) exceeded the budget estimate. Fourth, the phenomenon of "valuing construction over management" still exists. In some water conservancy projects, especially rural water conservancy projects that are numerous and widely distributed, post-construction management and maintenance are not in place, and some facilities suffer from siltation, damage, and diminished function. Fifth, some funds are used in violation of regulations and discipline. Some officials violate regulations and discipline by interfering in project construction, and some project funds are misappropriated, diverted, or fraudulently obtained.
The main reasons for the above problems lie in the fact that the relationship between the government and the market has not been fully rationalized, the water conservancy expenditure responsibilities of the central and local governments are not clearly defined, planning and management coordination is insufficient, the performance management system needs to be improved, and reform in some water conservancy fields lags behind.
Lou Jiwei stated that the Ministry of Finance mainly has six areas of work planned for the next step:
First is to rationalize the relationship between the government and the market. While continuing to adhere to government-led water conservancy development, it is necessary to accelerate the establishment of a mechanism that organically combines government and market forces and to give fuller play to the role of market mechanisms.
Second is to study and define the expenditure responsibilities of the central and local governments. On the basis of studying and clarifying central authority, local authority, and shared central-local authority, further clarify the expenditure responsibilities borne by the central government, by local governments, and jointly.
Third is to improve the budget management mechanism for fiscal water conservancy funds. This includes optimizing the transfer payment system; improving budget management and control; and strengthening performance management of fiscal water conservancy funds. Strengthen awareness of expenditure responsibility and efficiency, improve the budget performance management system and mechanism, and comprehensively advance budget performance management.
Fourth is to optimize the expenditure structure of fiscal water conservancy funds. This includes strongly supporting the construction of major water conservancy projects; strongly supporting water conservancy development for people's livelihood; strongly supporting ecological civilization construction; and steadily advancing comprehensive treatment of groundwater overexploitation.
Fifth is to support accelerating reform in key water conservancy fields. This includes accelerating the improvement of farmland water conservancy construction and management mechanisms; accelerating the advancement of agricultural water price reform; accelerating the establishment of ecological compensation mechanisms; and supporting the establishment of a water rights system.
Sixth is to improve and strengthen supervision of fiscal water conservancy funds. This includes further improving the institutional system; further improving fund allocation and project management; vigorously promoting information disclosure; and strengthening supervision and inspection. Establish and improve a risk prevention and control mechanism for the allocation and use of water conservancy funds, and strengthen monitoring of key risk links and areas. Strengthen audit supervision, fiscal supervision, and water conservancy inspection, and further give play to the role of social supervision. Increase inspection efforts in key regions and key projects, strengthen supervision of fund use at the grassroots level, and focus on solving problems such as misappropriation, diversion, and fraudulent obtaining of funds.
(Securities Times Online News Center)