The main problems in farmland water conservancy construction include: difficulty in obtaining income from land transfer and insufficient water investment, which are the main reasons for the backwardness of farmland water conservancy construction.
To this end, the central government’s “No. 1 Document” in 2013 proposed for the first time that 10% of land transfer proceeds should be used for farmland water conservancy construction.
Land transfer income refers to the land transfer income obtained by the government from the transfer of state-owned land use rights, after deducting the actual payment from the local treasury in the year of land acquisition and demolition compensation expenses, land development expenses and other related cost expenditures.
This indicator is extremely valuable.
In 2010, the total amount of land transfer funds nationwide reached 2.9 trillion yuan, of which the revenue was about 800 billion yuan. According to the 10% ratio, the new funds used for farmland water conservancy construction will reach 80 billion yuan, which exceeds the central and local governments in 2010.
Total financial funds.
Since most of the land transfer proceeds are in the hands of district and county governments, the central and provincial governments have little effective control over whether county and district governments can withdraw the full amount.
In the past few years, the central government's "No. 1 Document" also proposed a similar proposal of 15%, but the actual implementation was not ideal.
Revenue from land sales has become the main source of extra-budgetary revenue for local governments, accounting for as much as 70% in some places, becoming the “secondary finance” of local governments.
However, because it is not included in budget management and is not used in a standardized manner, even the specific figures for land transfer across the country are stated differently by the land and finance departments.
People familiar with the situation believe that some places have resorted to increasing the cost of land transfer fees, thereby reducing actual benefits.
To this end, some scholars have proposed changing land transfer income to land transfer fees, and extracting a certain proportion of the total land transfer income. Zhejiang Province proposed that 2% of land transfer income be used for farmland water conservancy construction.
It is reported that the proportion of 2%-3% is more recognized.
Since governments at all levels are heavily in debt, land transfer fees play an increasingly important role in maintaining government operations. Governments at all levels use less real money for farmland water conservancy, which is not favored by some scholars and officials.
An official from the water conservancy department estimated that up to 50 billion yuan could be implemented.
Another thorny issue is the regional imbalance in land transfer revenue.
About 75% of land transfer proceeds are concentrated in the east, but farmland and water conservancy construction tasks in many eastern areas are not heavy.
In the central and western regions, especially in large agricultural counties, there are large debts for farmland water conservancy construction and heavy construction tasks, while the income from land transfer is often very small.
To this end, relevant departments have put forward suggestions for coordinated use across regions, but this has been opposed by some developed provinces.
The above-mentioned experts believe that the land transfer income in the eastern region is relatively high, but there are not many things to do, and the construction specifications are higher than those in the western region, so the demand for construction funds is not small.
Ni Wenjin, deputy director of the Rural Water Resources Department of the Ministry of Water Resources, told Caijing reporters that the Ministry of Finance and the Ministry of Water Resources are actively studying specific implementation policies.
The Ministry of Water Resources recommends that the central and provincial governments coordinate a portion of land transfer proceeds to support major grain-producing areas and central and western regions in improving agricultural production conditions.
Wang Yahua, deputy director of the Chinese Academy of Sciences-Tsinghua University National Conditions Research Center, suggested that while strengthening cross-regional transfer payments, formulate corresponding policies to allow land transfer proceeds in the eastern region to be used for non-farmland water conservancy construction projects.
The Ministry of Finance and the Ministry of Water Resources issued a document on specific methods for the provision and liquidation of farmland water conservancy construction funds - the "Notice on Matters Concerning the Provision of Farmland Water Conservancy Construction Funds from Land Transfer Income". The document requires all localities to withdraw and direct funds in full.
Use, 10% of the land transfer proceeds will be used for farmland water conservancy construction.
The document stipulates that funds for farmland water conservancy construction shall be earmarked exclusively for the construction of farmland water conservancy facilities, with a focus on major grain-producing areas.
The specific scope of use includes: new construction, repair, continuation, supporting and transformation of small farmland water conservancy facilities, field projects and final canal systems in irrigation areas; small water cellars, small pools, small ponds, small pumping stations, small canals in hilly areas, etc.
Construction of "Five Small Water Conservancy" projects; development of water-saving irrigation, promotion of channel anti-seepage, pipeline water transmission, sprinkler and drip irrigation and other technologies; farmland water conservancy construction in pastoral areas.
At the same time, it can also be used for daily maintenance expenses of the above-mentioned farmland water conservancy facilities, but it cannot be used for personnel funds, public funds and other recurring expenses.
How the central government will coordinate the plan has not yet been finalized, but the withdrawal ratio is most likely to be about 30%, or about 90 billion yuan.
Differences in local government support After the central government’s “No. 1 Document” was issued, some county and city water conservancy bureaus and development and reform commissions became busy, stepping up plans and reporting projects.
It is understood that some projects that were originally scheduled to be launched have been accelerated, and other projects that were unable to be launched due to financial difficulties are also expected to be secured.
"Only when you have a project can you have money. Without a project, it is impossible to get the money and let you use it as a whole." An official from the Shandong Water Conservancy Department told a reporter from Caijing.
Since all water conservancy funds are allocated in the form of projects, applying for projects and obtaining support from relevant national ministries and commissions have become an urgent task for some local governments.
However, with the substantial growth of central water conservancy investment, local governments are facing increasing supporting gaps and pressures.