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China to improve implementation of direct fiscal fund system

China will improve the implementation of the system for the regular transfer of direct fiscal funds to further benefit businesses and the public, according to a State Council executive meeting.

The meeting, chaired by Premier Li Keqiang on Wednesday, also passed a draft regulation on the country's land management.

The system of direct fiscal fund allocation, which has become a regular practice this year, is a major macro-control innovation, according to the meeting.

A total of 1.7 trillion yuan (about 261.35 billion U.S. dollars) of fiscal funds were directly channeled to local governments last year to stabilize the economy. Some 2.8 trillion yuan will be transferred under the same mechanism in 2021.

The central government has so far transferred 2.6 trillion yuan of these funds to local governments this year, of which more than 2.2 trillion yuan has arrived at fund users.

The directly allocated fiscal funds will mainly support employment, people's well-being, and the market, said the meeting, calling for pooling more funds for compulsory education, basic medicare, basic housing, and farmland irrigation and water conservancy.

It also urged local governments to ensure the allocation and use of the direct funds, the implementation of relevant policies, and fund monitoring improvements.

The draft regulation on land management has stressed the management and protection of permanent basic farmland and specified land expropriation procedures.

While protecting the farmers' reasonable demand for homesteads, the draft regulation has also strengthened supervision and punishment on irregularities concerning land.

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