The National Development and Reform Commission's "Government Investment Regulations" will introduce local funds for use.

After nine years of brewing, a new regulation that limits the impulse of government investment at or above the county level is about to finish the final agenda.

The newspaper was informed that the Regulations and Investment Department of the National Development and Reform Commission recently held a meeting on the revision of the “Regulations on Government Investment” (hereinafter referred to as the “Regulations”), and 14 relevant personnel from the Provincial Development and Reform Commission participated. On August 10, relevant persons of the National Development and Reform Commission told this newspaper that the "Regulations" are going to be introduced this year.

For local governments, this is a meeting to collect rights and increase the use of funds.

A participant revealed to the newspaper that the National Development and Reform Commission mainly wants to change the current situation of multi-head management and multiple examination and approval, and hand over the approval authority of government investment projects to the NDRC system. In addition, according to the specific project situation, some original Government investment projects that are under review and management by the government may also need to be submitted to the National Development and Reform Commission for unified approval and management. “The government investment authority at the county and city levels will be greatly reduced”.

Central Discipline Inspection Commission
According to the source of funds, all investment funds, various special construction funds, national sovereign foreign debt funds, and other government funds that are used in the budget are all government investment. According to different investment entities, government investment is divided into central government investment and local government investment.

The newspaper learned that China's annual government investment accounts for about 10% of the total social investment. In recent years, China’s annual government investment has exceeded two trillion yuan. With the continuous expansion of China's fixed asset investment, government investment has become a frequent area of ​​issues such as official corruption, bean curd project, performance engineering, and redundant construction.

The State Council first proposed the drafting and promulgation of the "Regulations" in 2001, and has passed since 9 years. In the meantime, several versions of the draft for comments have been published. In 2007, at a national symposium hosted by Du Ying, deputy director of the National Development and Reform Commission, some even suggested that if the "Regulations" were issued, it could be piloted in some places.

It is understood that the current "Regulations" draft for comment was born out of the 2006 version and was reported to the Legislative Affairs Office of the State Council by the National Development and Reform Commission at the end of last year.

In 2008, with the introduction of the central government's 4 trillion investment plan, government investment projects frequently had problems such as insufficient funds and misappropriation of funds from the central government. The funds that were originally explicitly invested in public welfare projects were also invested in business projects in some places. Premier Wen Jiabao of the State Council once said in a report on the inspection and summarization of the central government's investment of 4 trillion yuan, "the problems arising from government investment should be regulated from the system." Since then, the Central Commission for Discipline Inspection has made the "Regulations" an important part of the construction of a special governance system in the engineering field, and requested the National Development and Reform Commission to issue the "Regulations" as soon as possible.

"Receiving rights" to local governments

Relevant sources revealed that the reason why the government investment regulations have been delayed for nine years, mainly because of the local and central government, and the various government departments have been difficult to agree on the distribution of rights to the project.

At present, China has implemented an examination and approval system for government investment projects. The approval authority of the central investment project belongs to the National Development and Reform Commission in principle, but in the engineering fields of railway, highway, water conservancy and environmental protection, it involves the authority of many ministries. In addition, the National Development and Reform Commission will also approve some large-scale local government investment projects involving “national security, cross-regional” and so on.

For local government investment, the project approval authority is mainly in the local government, and some smaller government investment projects can even be approved in the county. Some projects, even in the local area, have the authority to approve and distribute them among transportation, environmental protection, water conservancy, and agriculture.

“The National Development and Reform Commission has always hoped to recover the approval rights of government investment projects. Whether it is highways, railways, agriculture, forestry and water conservancy projects, etc., it is necessary for the National Development and Reform Commission to coordinate and approve.” The above-mentioned people said that at the same time, the county and city level and some The municipal government's approval of government investment projects will shift the government's investment responsibilities.

In this regard, Luo Songshan, a researcher at the Investment Research Institute of the National Development and Reform Commission, said that the approval authority for approval is a trend. "But if it is difficult to approve the approval power of the local provincial government, the "Regulations" will not be delayed for so long. ”

Despite this, the National Development and Reform Commission made a compromise and opened a section in the Regulations to allow for the approval of project proposals and feasibility studies based on the different characteristics and actual conditions of the project, or to unify the investment plan. In lieu of the approval of the fund application report, it is mainly applicable to central budget investment projects with more points, wider scope and less individual funds.

This provision means that the National Development and Reform Commission can approve the central government funds in a “cut-and-bundle” manner based on the specific circumstances of government investment. On this basis, central funds and local government funds can be bundled and decentralized. In 2009, the National Development and Reform Commission (NDRC) has adopted this approach in the face of the “running department”.

It is worth noting that, from the relevant central ministries and commissions to local governments, apart from participating in the initial approval stage, the use of project funds and post-supervision have not implemented relevant responsibilities.

In the "Regulations", there is no clear provision for the links after the examination and approval.

Luo Songshan said that the main problem in the government investment field is that the decision-making is unscientific, and management and later supervision are not clear. If the problems of management and supervision are not solved well, the annual government investment of more than 2 trillion will still have problems of over budget, chaos approval and even corruption.

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