Ministry of Finance issued a statement reiterating the implementation of water conservancy construction policy

Following the implementation of the meeting by the Ministry of Finance at the beginning of the Central Water Conservancy Work Conference in early July, the Ministry of Finance has issued a document a few days ago to further clarify the policies and measures of the financial sector in support of water conservancy development reform, and proposed that the total amount and increase of financial capital investment should be significantly improved.

The Ministry of Finance issued a document on the official website that the governments at all levels must earnestly implement the policy of extracting 10% of the proceeds from land transfer for irrigation and water conservancy construction, and implement the spirit of the Central Water Conservancy Work Conference. It is required to place support for the development of water conservancy reforms in a more prominent position in the financial work, and increase the input of public finances to water conservancy.

The "highest specification" meeting was once opened. In fact, the No. 1 document issued by the Central Government in January this year focused on the development of water conservancy construction and proposed that 10% of the local government land transfer proceeds should be used for irrigation and water conservancy construction. To ensure the implementation and resolution of funds and various issues. On July 8th, a two-day Central Water Conservancy Conference was held again, reiterating the content of “No. 1 Document”. This conference was called the "highest specification" conference since the founding of New China. President Hu Jintao attended and delivered a speech. Affected by this, the A-share market's water conservancy stocks rose sharply. The document issued by the Ministry of Finance yesterday reiterated the above two policies, and once again required governments at all levels to earnestly implement the policy of extracting 10% of the proceeds from land transfer for irrigation and water conservancy construction.

According to public information, if calculated according to the 2010 land transfer fee, 10% accrual is equivalent to 120 billion yuan -130 billion yuan; in 2010, China's total water conservancy investment is only 200 billion yuan. The Central Document No. 1 clearly stated that the average investment for water conservation in the entire society should be doubled over 2010 in the next 10 years, that is, the investment in water resources in the next 10 years will reach 4 trillion yuan.

The policy of ensuring that local government funds are in place to extract 10% of the proceeds from land sales for irrigation and water conservancy construction is, to a greater extent, to ensure that the supporting funds for local governments are fully in place in the coming tide of construction of water conservancy projects. The local government funds account for the largest proportion of China’s water resources for fixed assets investment, and it is of great importance to the funds for the construction of water conservancy projects. In the future, water conservancy reform and construction will become the next field of vigorous development. The specific follow-up support will depend on the situation of local reporting of projects. It should be more than this number.