Intro: Localities carried out the decisions and arrangement on the management over poverty-relief funds and gave full play to the role of it. Here is an outline of China’s efforts on management and use of poverty-relief funds in 2019, excerpted from Yearbook of China’s Poverty Alleviation and Development, 2020.
In 2019, localities carried out the decisions and arrangement made by China’s State Council on the management over poverty-relief funds, deepened the reform of the mechanism for using the poverty-relief funds, promoted the pilot work of integrating the fiscal funds for rural development in poor counties, enhanced the supervision over the fund use, improved the construction of the poverty alleviation project reserve, strictly disclosed the information on the projects funded by poverty-relief funds. Policies and measures are made to:
Injecting more funds. The special poverty relief funds allocated from central and provincial budgets reached RMB 220.7 billion, seeing an increase of RMB 1.1 billion over 2018, up 22.9 percent. Among them, China’s central government subsidies for local poverty alleviation programs totaled RMB 126.1 billion, marking an increase of RMB 20 billion from 2018 and an increase of 18.9 percent; the provincial government appropriated RMB 94.6 billion, an increase of RMB 21.1 billion, or a 28.7 percent rise.
Using poverty-relief funds in a targeted fashion. The State Council Leading Group Office of Poverty Alleviation and Development (LGOP) implemented the fundamental strategies for targeted poverty alleviation and elimination. Based on the precise identification of the poor population, it integrated the fund use with the results of poverty registration and with the performance of poverty alleviation, in order to ensure the funds could be used properly and the benefits could be delivered to each poor resident.
Localities intensified their support to develop competitive and distinctive industries. Around 48.5 percent of the central government’s poverty alleviation funds were injected to develop industries; around 36 percent was invested in improving basic working and living conditions and infrastructure construction in poor villages; around 15.5 percent was used in discount loans in the financial measures for poverty alleviation, risking compensation, enhancing capabilities to escape from poverty and insurance.
Strengthening supervision and management over the fund use. Poverty relief departments at all levels made unremitting efforts and regard it as a major political task. In recent years, the LGOP has taken a number of measures together with financial departments to improve institutions, strengthen supervision, and strive to improve the efficiency of fund use.
First, reinforcing the system for managing poverty-relief funds. In 2019, the LGOP formulated and issued the Notice on Further Improving the Construction of County-Level Poverty-Relief Project Reserve, and worked with China’s Ministry of Finance (MOF) to issue the notice on the pilot work of integrating the funds for rural development in poor counties in 2019.
Second, streamlining administration and delegating the approval power over poverty-relief projects to lower-level governments. Speed up the allocation of funds. In 2019, the central government’s special poverty alleviation funds of RMB 126.1 billion were allocated to all provinces in May. The provinces were urged to allocate the funds within the set time frame, so that the funds were dispensed as early as possible and the grassroots projects could be prepared and implemented earlier.
Third, improving the construction of county-level poverty-relief project reserve. The LGOP guided localities to hold expert discussion and enhance the poverty-relief project reserve, with the attempt to make the use of poverty-relief funds more targeted, and avoid slow implementation that led to funds sitting idle.
Fourth, making public the poverty relief fund use. The distribution of the special poverty-relief funds allocated by the central, provincial, municipal and county governments, as well as the arrangements for township and village-level poverty-relief projects and the use of poverty-relief funds were disclosed to the public in accordance to relevant regulations.
Fifth, enhancing the inspection, evaluation and supervision over the fund use. We strengthened the daily supervision of poverty-relief funds, and established a long-term mechanism for making full use of idle funds by accelerating fund allocation and project implementation as well as putting the idle funds to good use.
Sixth, conscientiously auditing and rectifying problems. The LGOP attached high importance to rectifying problems identified in the auditing process, and assumed full responsibility for supervision and management. Every year, LGOP works with relevant departments such as the MOF to earnestly make arrangements for urging localities to rectify their problems in accordance with relevant requirements.
Seventh, making coordinated efforts to exercise supervision, enforcing discipline, and ensuring accountability in the anti-poverty work. The LGOP proactively made coordinated efforts to carry out the campaign cracking down upon corruption and misconduct in poverty alleviation, and improved work conduct in the whole process of poverty alleviation.
Eighth, conducting cautionary education. The LGOP assumed responsibility for enforcing full, improved conduct, built integrity, combated corruption in poverty alleviation, and made continued efforts to conduct cautionary education.
According to the performance evaluation in 2019, all provinces allocated poverty-relief funds in a timely manner, pushed ahead with the construction of project reserve and enhanced their management over performance evaluation, further improved the efficiency of appropriating and using poverty-relief funds, and greatly reduced behavior in violation of disciplines and regulations. The field-visit evaluation revealed that the profits of poverty alleviation programs witnessed a steady increase year by year, and the poor rural residents got payment through participating in the poverty-alleviation industries and finding employment. The poor mastered labor skills, and boosted their self-development capability and confidence towards life.
Resource：
[1] Yearbook of China’s poverty alleviation and development for 2020.
https://yearbook.iprcc.org.cn/download/2020nj_ch/%E4%B8%AD%E5%9B%BD%E6%89%B6%E8%B4%AB%E5%BC%80%E5%8F%91%E5%B9%B4%E9%89%B42020%E4%B8%AD%E6%96%87%E7%89%88.pdf
