Water conservancy fund is a special fund for water conservancy construction, which consists of central water conservancy construction fund and local water conservancy construction fund. The central water conservancy construction fund is mainly used for the maintenance and construction of major river key projects related to the overall situation of national economic and social development.
Local water conservancy construction funds are mainly used for urban flood control and the management, maintenance and construction of small and medium-sized rivers and lakes. The management expenses of major water conservancy construction projects across river basins and provinces (autonomous regions and municipalities directly under the Central Government) and key protection projects of transnational rivers and border rivers in China shall be borne by the central and local governments.
Article 1 In order to speed up the pace of water conservancy construction, improve the flood control and drought resistance of rivers, change the backward situation of key water conservancy facilities and river flood control system construction, alleviate the contradiction between supply and demand of water resources, and promote the sustained, rapid and healthy development of social economy, these measures are formulated in accordance with the decision of the State Council on establishing a water conservancy construction fund.
Article 3 Sources of the central water conservancy construction fund:
(a) 3% from the funds (fees and surcharges) of the relevant departments of the central government. The central government funds (fees and surcharges) that should be drawn from the water conservancy construction fund include: vehicle purchase surcharge, port construction fee, railway construction fund, local telephone installation fee, post and telecommunications surcharge, and central shared electric power construction fund.
(two) other funds approved by the State Council for water conservancy construction fund.