Measures for the Administration of Funds for Forestry and Grassland Reform and Development (Policy Transmission)

Attachment

Measures for the administration of funds for the reform and development of forestry and grassland

Chapter 1   General provisions

Article 1 In order to strengthen and standardize the management of the use of funds for forestry and grassland reform and development, improve the efficiency of fund use, and promote the reform and development of forestry and grassland, this method is formulated in accordance with the Budget Law of the People's Republic of China and its implementing regulations, as well as relevant financial management system provisions.

Article 2 The forestry and grassland reform and development funds referred to in these Measures refer to the joint fiscal transfer payment funds arranged by the central budget for land greening, forestry and grassland support and guarantee systems, and other aspects.

Article 3 The funds for forestry and grassland reform and development shall be managed by the Ministry of Finance and the National Forestry and Grassland Administration.

The Ministry of Finance is responsible for preparing mid-term financial plans and annual budget drafts, reviewing funding allocation proposals and issuing budgets, organizing budget performance management and supervision, and guiding local governments to strengthen supervision of fund use management.

The National Forestry and Grassland Administration is responsible for formulating relevant plans, providing basic data required for fund calculation and coordinating with relevant plans, proposing funding allocation suggestions, organizing project reserves, and being responsible for the authenticity and accuracy of relevant data. Implement budget performance management in accordance with regulations, supervise and guide local governments to do a good job in project and fund utilization management and supervision.

Article 4 The local finance department is responsible for the budget decomposition and issuance of funds for the reform and development of forestry and grassland in the local area, organizing budget execution, managing and supervising the use of funds, and managing budget performance.

Local forestry and grassland authorities shall participate in the allocation of funds for forestry and grassland reform and development in their respective regions based on their functions. They shall be responsible for the specific management and supervision of the use of funds, project initiation, organization and implementation, daily supervision, project acceptance, and budget performance management. Local forestry and grassland authorities and finance departments at all levels shall be responsible for the authenticity and accuracy of the relevant data and information reported that may affect the results of fund allocation.

Article 5 The implementation period of forestry and grassland reform and development funds shall be until 2027 (expenditures for returning farmland to forests and grasslands shall be implemented in accordance with relevant regulations). Before the expiration, the Ministry of Finance, in conjunction with the National Forestry and Grassland Administration, shall evaluate and determine whether to continue to implement and extend the period.

Article 6 In the preparation and execution of the annual budget for funds, the Ministry of Finance, in conjunction with the National Forestry and Grassland Administration, shall carry out relevant evaluation work based on policy implementation and work needs, and improve fund management policies based on the evaluation results.

Chapter 2   Scope of Fund Use

Article 7 The funds for forestry and grassland reform and development shall be mainly used for the following purposes:

（1） The expenditure on land greening is used for returning farmland to forests and grasslands, developing oil tea, and other land greening projects. Among them, the subsidy for returning farmland to forests and grasslands is used for the extension period of the new round of returning farmland to forests and grasslands, as well as for the cultivation of ecological forests after the expiration of the previous policy; The development subsidy for oil tea is used for oil tea cultivation and demonstration of oil tea industry development; Other land greening subsidies are used for improving forest quality, afforestation (including the cultivation of woody oil crops such as walnuts, olives, apricots, hazelnuts, peonies, and fruits other than oil tea), grassland ecological restoration and management, and sand prevention and control outside the "Three North" areas.

（2） The expenditure of the forestry and grassland support and guarantee system is used for forest and grassland fire prevention, pest control, production and disaster relief, national comprehensive monitoring (census) of forests, grasslands, wetlands and deserts, as well as the cultivation of high-quality forest and grass seeds, and the promotion of forestry and grassland science and technology.

（3） Other key tasks determined by the Party Central Committee and the State Council to support the reform and development of forestry and grassland

Article 8 The funds for forestry and grassland reform and development shall not be used for the construction of buildings, government offices, repayment of borrowed debts, or other expenditures unrelated to forestry and grassland reform and development.

Article 9 The funds for forestry and grassland reform and development shall not be used interchangeably or supported repeatedly with central infrastructure investment and other central financial funds.

Chapter 3   Fund Allocation

Article 10 The funds for forestry and grassland reform and development shall be allocated through a combination of factor based and project based methods.

If the factor method is adopted for allocation, the specific factor selection can be adjusted appropriately by the National Forestry and Grassland Administration in conjunction with the Ministry of Finance based on the relevant decisions and deployments of the Party Central Committee and the State Council, as well as the actual needs of forestry and grassland reform and development. For relevant reforms or pilot projects, as well as planned cities, Xinjiang Production and Construction Corps, Daxing'anling Forestry Group Company, etc., quota subsidies can be adopted.

For projects allocated using the project approach, the Ministry of Finance and the National Forestry and Grassland Administration will select specific projects through evaluation. The Ministry of Finance and the National Forestry and Grassland Administration shall issue application notices before project evaluation, clarifying specific matters such as project application scope, subject, and material requirements. The subsidy amount is determined based on the specific situation of the project, annual budget, and evaluation.

Article 11 The Ministry of Finance, in conjunction with the National Forestry and Grassland Administration, shall adjust the preliminary allocation results of funds allocated using the factor method based on financial conditions, performance evaluation audits, financial and accounting supervision, project reserves, and other factors. Among them, the financial situation is adjusted according to the degree of financial difficulties in each province; Weighted average of fund allocation results based on performance evaluation scores to determine the adjustment amount; Deduct corresponding funds from provinces where audit and financial supervision discover problems; Deduct corresponding funds from provinces with insufficient project reserves, and use the deducted funds to subsidize provinces with sufficient project reserves. The funds transferred from person to household are not subject to any other adjustments except for deductions due to audit and financial supervision issues.

Article 12 Land greening expenditures shall be allocated through the factor method and project method. Among them: (1) Subsidies for returning farmland to forests and grasslands are allocated through the factor method. Calculate the annual subsidy scale based on the area and subsidy standards verified by the National Forestry and Grassland Administration. The deadline and standard for the new round of subsidies for returning farmland to forests and grasslands are: a subsidy of 1200 yuan per mu of farmland to forests, which will be issued in three installments within five years: 500 yuan in the first year, 300 yuan in the third year, and 400 yuan in the fifth year. The new round of subsidies for the extension period of returning farmland to forests and grasslands is as follows: a subsidy of 500 yuan per mu of farmland for returning farmland to forests will be issued in five installments, with an annual subsidy of 100 yuan; The subsidy for returning farmland to grassland is 300 yuan per mu, issued in three installments of 100 yuan per year. The previous policy of returning farmland to ecological forests and nurturing each acre of farmland will receive a subsidy of 100 yuan. Starting from the year after the policy expires, it will be issued in five installments at a rate of 20 yuan per year.

（2） The development subsidy for oil tea is allocated through factor and project methods. Among them, the cultivation of oil tea is allocated through the factor method, calculated according to the task of oil tea cultivation (80%) and the area of oil tea forest (20%); The demonstration award for the development of the oil tea industry is allocated through the project method

（3） Other land greening subsidies are allocated through the factor method and project method. Among them, the demonstration project of national land greening is allocated through the project law; The other parts are calculated based on the national land greening task (80%) and resource status (20%).

Article 13 The expenditure of the forestry and grassland support and guarantee system shall be allocated through the factor method. Calculated based on forest coverage rate (30%), forest area (25%), grassland comprehensive vegetation coverage (15%), grassland area (10%), number of forestry and grassland technology promotion institutions (10%), and distribution area of Spartina alterniflora (10%). Among them, the rental funds for forest and grassland aviation firefighting shall be implemented in accordance with the relevant regulations on rental fund management.

Article 14 Each province (autonomous region, municipality directly under the central government, city specifically designated in the state plan, including Xinjiang Production and Construction Corps, hereinafter referred to as the province) shall allocate funds for forestry and grassland reform and development in accordance with relevant work tasks and local conditions, and tilt towards revolutionary old areas, ethnic areas, border areas, and poverty-stricken areas.

Article 15 Financial departments at all levels shall, in conjunction with forestry and grassland authorities at the same level, support the overall integration of agricultural funds. The funds allocated to key counties for national rural revitalization assistance shall be implemented in accordance with the relevant provisions of the "Notice on Optimizing and Adjusting the Pilot Policy of Coordinating and Integrating Agricultural Funds in Poverty Alleviation Counties to Key Counties for National Rural Revitalization Assistance" (Cainong [2024] No. 1) issued by the Ministry of Finance and 10 other departments.

Chapter 4   Budget Issuance

Article 16 The forestry and grassland competent departments and financial departments of each province shall timely, fully and standardly reserve funds for projects in accordance with regulations, be responsible for organizing, reviewing, summarizing and storing projects in their respective provinces. They shall focus on key areas and concentrate their efforts, organize targeted reserve storage around the implementation of the decisions and deployments of the Party Central Committee and the State Council, and complete the review and storage work before the budget is issued. Projects that are not included in the project library shall not be budgeted in principle.

Article 17 The National Forestry and Grassland Administration shall, before October 15th of each year, propose a distribution plan for the next year's forestry and grassland reform and development funds in advance, based on the current year's funding arrangements, and submit it to the Ministry of Finance.

Article 18 The Ministry of Finance shall issue the estimated amount of funds for forestry and grassland reform and development for the next year to the provincial finance department in advance before October 31 each year, and copy it to the National Forestry and Grassland Administration and the local supervision bureaus of the Ministry of Finance.

Article 19 The State Forestry and Grassland Administration shall, within 15 days after the approval of the central budget by the National People's Congress each year, put forward a proposal for the distribution of funds for the reform and development of forestry and grassland among provinces in that year and submit it to the Ministry of Finance.

Article 20 The Ministry of Finance shall, within 30 days after the approval of the central budget by the National People's Congress each year, review and issue the current year's capital budget according to the annual budget arrangement and the proposed scheme for capital distribution of the State Forestry and Grass Administration, and send a copy to the State Forestry and Grass Administration and the local regulatory bureaus of the Ministry of Finance.

Article 21 After receiving the budget for forestry and grassland reform and development funds, the provincial finance department shall, together with the forestry and grassland competent departments, decompose and issue it within 30 days, and at the same time report the results of fund allocation to the Ministry of Finance and the National Forestry and Grassland Administration for record, and copy the local supervision bureau of the Ministry of Finance.

Chapter 5   Budget Performance Management

Article 22 The forestry and grassland reform and development funds shall establish a full process budget performance management mechanism that includes "budget preparation with target budget execution and monitoring, budget completion with evaluation, evaluation results with feedback, and feedback results with application".

Article 23 The performance goals of forestry and grassland reform and development funds are divided into overall performance goals, regional performance goals, and project performance goals, mainly including indicators such as output and satisfaction with benefits.

Article 24 Basis for Setting, Reviewing, and Issuing Performance Objectives:

（1） Relevant national laws, regulations, and rules, major decisions and deployments in the forestry and grassland fields by the Party Central Committee and the State Council, and national economic and social development plans.

（2） The mid-term financial planning and annual budget of the finance department, as well as the budget management system formulated by the finance department.

（3） Forestry and grassland development plan, forestry and grassland industry standards, and other related key plans.

（4） The relevant forestry and grassland statistical data published by the statistical department or industry regulatory department, and the relevant data reflected by the financial department on fund management.

（5） Other evidence that meets the requirements of the Ministry of Finance and the National Forestry and Grassland Administration.

Article 25 Provincial financial departments shall organize forestry and grassland management departments to determine the annual key tasks of forestry and grassland reform and development funds, set regional performance goals, fill out regional performance goal declaration forms, submit them to the Ministry of Finance and the National Forestry and Grassland Administration, and copy them to the local regulatory bureau of the Ministry of Finance, based on the mid-term financial plan, forestry and grassland development plan, project inventory situation, and the actual work of the province, before February 15 each year. The Great Khingan Mountains Forestry Group Co., Ltd. submits relevant materials to the State Forestry and Grass Administration. The State Forestry and Grass Administration reviews and improves the regional performance objectives of each province within 15 days after the approval of the central budget by the National People's Congress every year, and submits them to the Ministry of Finance along with the fund allocation proposal.

The Ministry of Finance shall, within 30 days after the approval of the central budget by the National People's Congress each year, issue the regional performance goals along with the current year's capital budget, and copy them to the State Forestry and Grass Administration and the local regulatory bureaus of the Ministry of Finance.

The project performance goals shall be submitted along with the project text. After the performance goal table of the selected projects is reviewed by the National Forestry and Grassland Administration, it shall be submitted to the Ministry of Finance synchronously with the funding allocation proposal; The Ministry of Finance issues project performance targets synchronously with the project budget, and copies them to the National Forestry and Grassland Administration and the local regulatory bureau of the Ministry of Finance.

Article 26 Local financial departments at all levels, in conjunction with forestry and grassland authorities, shall implement budget performance monitoring in accordance with requirements. Forestry and grassland authorities are the main body responsible for implementing budget performance monitoring, focusing on monitoring whether the use of funds meets the performance goals set. When deviations are found between performance monitoring and expected performance goals, timely measures shall be taken to correct them.

Article 27 After the completion of budget execution, relevant units shall conduct performance self-evaluation against the determined performance targets. Provincial finance departments and forestry and grassland supervisory departments shall review and summarize the results, and submit the local performance self-evaluation report and self-evaluation form in a timely manner. They shall be responsible for the authenticity of the self-evaluation results and performance evaluation related materials. The Ministry of Finance conducts key performance evaluations of funds based on work needs.

Article 28 The basis for performance monitoring and evaluation includes:

（1） The basis for setting, reviewing, and issuing performance goals.

（2） Financial performance targets for forestry and grassland reform and development.

（3） Budget issuance documents, financial accounting information, and other relevant documents and materials.

（4） The report on the review results of the National People's Congress, inspection and audit reports and decisions, financial and accounting supervision reports, as well as project evaluation or completion acceptance reports, evaluation and assessment opinions issued by relevant departments or commissioned intermediary agencies.

（5） Formal documents, meeting minutes, etc. that reflect the work situation and project organization implementation.

（6） Other evidence that meets the requirements of the Ministry of Finance and the National Forestry and Grassland Administration.

Article 29 The performance evaluation results shall be in the form of a combination of scoring and rating, and the specific scores and grades shall be implemented in accordance with the relevant regulations of performance evaluation management. Establish a feedback and application mechanism for performance evaluation results, which serve as an important basis for improving the funding policy for forestry and grassland reform and development, improving management, and applying for, arranging, and allocating the next year's budget.

Article 30 For the part included in the scope of overall fund integration for key counties for national rural revitalization assistance, the indicators corresponding to regional performance targets shall be reduced according to the amount of integrated funds.

Chapter 6   Budget Execution and Supervision

Article 31 Local forestry and grassland competent departments and financial departments at all levels shall do a good job in the reserve of central forestry and grassland transfer payment funds, accelerate budget execution, and improve the efficiency of fund utilization. The forestry and grassland reform and development funds with surplus carried over shall be handled in accordance with the relevant regulations of the Ministry of Finance on the management of surplus carried over funds.

Article 32 The payment of funds for forestry and grassland reform and development shall comply with the relevant provisions of the centralized payment system of the national treasury. If it falls within the scope of government procurement management, it shall be implemented in accordance with the legal system of government procurement.

Article 33 When using funds for the reform and development of forestry and grassland management, various regions may explore and implement differentiated financial subsidy policies in accordance with work needs and regulations, such as using rewards instead of subsidies and loan interest subsidies. If the loan interest subsidy method is adopted, the bank credit inquiry should be included in the review process. Encourage various regions to carry out afforestation and other businesses in state-owned forest areas and state-owned forest farms through the purchase of services

Article 34 Information related to the use and management of funds for forestry and grassland reform and development shall be implemented in accordance with the requirements of budget disclosure.

Article 35 The supervisory bureaus of the Ministry of Finance in various regions shall supervise the management of the use of funds for forestry and grassland reform and development in accordance with their job responsibilities and the requirements of the Ministry of Finance

Article 36 If relevant departments and their staff at all levels of finance, forestry, grassland, etc. violate the provisions of these Measures in the allocation, use, and management of funds for forestry and grassland reform and development, as well as other violations of discipline and law such as abuse of power, dereliction of duty, and favoritism, they shall be held accountable in accordance with relevant national regulations such as the Budget Law of the People's Republic of China and its implementing regulations, the Civil Servant Law of the People's Republic of China, the Supervision Law of the People's Republic of China, and the Regulations on Punishing and Punishing Fiscal Illegal Acts. Those who commit crimes shall be held criminally responsible in accordance with the law.

Article 37 Units and individuals using funds for forestry and grassland reform and development who engage in illegal and irregular behavior shall be held accountable in accordance with relevant national regulations such as the Budget Law of the People's Republic of China and its implementing regulations, and the Regulations on Penalties and Punishments for Fiscal Violations. Those who commit crimes shall be held criminally responsible in accordance with the law.

Chapter 7   Supplementary Provisions

Article 38 The forestry and grassland reform and development funds used for central units shall be included in the annual budget of the central department to which they belong, and shall comply with the relevant provisions of central department budget management.

Article 39 Provincial financial departments, in conjunction with forestry and grassland authorities, shall formulate implementation measures based on these measures and the actual situation in the local area, submit them to the Ministry of Finance and the National Forestry and Grassland Administration, and copy the local regulatory bureau of the Ministry of Finance.

Article 40 These Measures shall be interpreted by the Ministry of Finance in conjunction with the National Forestry and Grassland Administration.

Article 41 These Measures shall come into effect from the date of promulgation. The Measures for the Management of Funds for Forestry and Grassland Reform and Development (Caizihuan [2022] No. 171) are simultaneously abolished. If the relevant documents on the reform and development of forestry and grassland issued by the Ministry of Finance and the former State Forestry Administration conflict with these Measures, these Measures shall prevail.