Local governments must use 10 percent of their land sales revenues for the creation of water conservancy projects starting from July 1, the Ministry of Finance said on Friday.
The move is in line with the central government’s efforts to boost the construction of water conservancy infrastructure in rural areas, as inadequate irrigation facilities have affected agricultural production and undermined food security.
The funds will tilt in favor of the country’s major agricultural areas. Provincial-level authorities have the right to decide how they will manage their funds in order to develop water conservancy infrastructure in their jurisdictions, the ministry said in a statement on its website.
Local governments must establish an accounting system for the funds and create an effective monitoring system to ensure that the funds will not be misappropriated, the statement said.
China plans to invest 4 trillion yuan in water conservation over the next 10 years in order to harness the resources of its numerous rivers and lakes.
