In order to better support economic construction and improve the efficiency of the use of financial funds, local governments at all levels have set up funds with specific purposes and paid use, that is, financial working capital, such as small-scale loans for technological transformation and working capital for supporting agriculture.

Financial working capital refers to the funds set up by the financial department for the paid use of the relevant units by credit.

Financial working capital is an integral part of financial funds and an auxiliary form for financial departments to allocate financial funds. The purpose of setting up financial working capital is to mobilize the enthusiasm of fund users, urge them to use funds rationally and economically, and improve the efficiency of fund use.

When presenting financial expenditure and transferring payment, the principle of paid use shall be implemented. If it is advanced to the fund-using unit or lent to the lower-level financial department for recycling, it shall be recovered on schedule, and interest (or occupation fee) shall be charged. Interest (or occupation fee) income is used to supplement working capital after deducting necessary business expenses.