Can special debt pay the prophase cost of land consolidation?
Of course. Special debt funds are the government's "debt issuance income" and the government's financial funds, which can be used for land acquisition, demolition and resettlement funds. In the past, special bonds for land reserve were used for land expropriation. According to Caizong [2018] No.8, the land reserve funds come from the following channels: (1) The financial department arranges the compensation for land acquisition and demolition and land development fees of the land reserve institutions from the land transfer income generated by the supply of land reserves; (two) the land reserve funds extracted by the financial department from the state-owned land income fund; (3) Land reserve funds raised by issuing local government bonds; (four) other financial funds that can be used for land reserve with the approval of the financial department. The scope of use of land reserve funds specifically includes: (1) the land price that should be paid for expropriation, acquisition, priority purchase or recovery of land or the compensation for land acquisition and demolition. Including land compensation fees and resettlement subsidies, ground attachments and young crops compensation fees, demolition compensation fees and other expenses related to expropriation, acquisition, priority purchase or recovery of land that need to be paid according to law. (two) after the land is expropriated, acquired, given priority to purchase or recovered, the necessary preliminary land development expenditure shall be carried out. The pre-development of reserve land is limited to the expenditure on infrastructure construction such as roads, water supply, power supply, gas supply, drainage, communication, lighting, greening and land leveling related to reserve land. (three) in accordance with the provisions of the Ministry of Finance on regulating land reserve and fund management, the principal and interest expenses of land reserve loans that need to be repaid. (four) other expenses related to land reserve approved by the finance department at the same level. Including cadastral survey, land registration, land price evaluation and fence, fence and other construction costs in land reserve. Pay attention to the red part above, which shows that special debt is one of the compliance sources of land reserve funds, and its funds can be used for demolition and resettlement compensation. At present, in addition to the plots of affordable rental housing, special bonds for soil storage are no longer issued, so some people think that special bonds cannot be used for demolition compensation and resettlement. In practice, there are indeed specially packaged bonds, which are actually used for land reserve. In addition, although the special debt can be used as the project capital, the project capital can not be used entirely by the special debt funds, and some fixed assets projects stipulate that the demolition compensation must use capital or self-owned funds, and financing funds are not allowed, which also causes some people to think that the special debt funds should not be used to pay the resettlement compensation. Land expropriation is a necessary condition for many special debt projects. As long as the issuance of special debt conforms to the regulations and the project content conforms to the support direction, there is no clear policy at the national level at present, and the special debt funds shall not be used to pay the demolition compensation. The core principle is that special debt is the financial "debt issuance income" and the government's financial funds.