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No. 28 of 2016 (General Serial No. 259):Real-time Audit Results of the Implementation of Major State Policies and Measures in the 2nd Quarter of 2016
2017-06-08日   Soure : 【来源:No. 28 of 2016 (General Serial No. 259):】 :

No. 28 of 2016 (General Serial No. 259):

Real-time Audit Results of the Implementation of Major State Policies and Measures in the 2nd Quarter of 2016

In the 2nd quarter of 2016, focusing on promoting supply-side structural reform, and paying extra attention to the implementation of 5 major tasks – reducing production capacity, cleaning up inventory, deleveraging, lowering cost, and overcoming shortages, the National Audit Office (CNAO) conducted an audit on overall planning and use of fiscal funds, implementation of poverty alleviation tasks, the reform of delegating powers, improving regulation and optimizing services, construction of major projects, and progress of trial of replacing business tax with value-added tax etc. by 1,633 projects of 1,077 units, involving RMB203.654 billion central funds, and paid attention to rectification of problems found in previous audit. As for the 182 problems involving RMB4.452 billion found in the audits of April and May, audit institutions had issued letters of recommendation on rectification to the audited units. By the end of the 2nd quarter, relevant units had rectified 72 problems among them, which involved RMB1.547 billion fiscal funds. As for problems yet to be fully rectified and those found in the audit in June, audit institutions are urging the rectification.

I. Relevant Departments and Localities Actively Promoted the Implementation of Major State Policies and Measures

Focusing on promoting supply-side structural reform, relevant departments and localities actively carried out work based on their actual situations, introduced supporting policies, measures and implementation plans in succession, made efforts to cultivate new developing momentum, improved quality and efficiency of supply system, and secured and improved people's livelihood. Major measures that the CNAO had learned about are as follow: 

u Promoting simplification of administrative procedures and delegation of powers, combination of the simplification and regulation, optimization of service reform, and decrease of systemic cost. The State Administration for Industry and Commerce focused on building a convenient and orderly market exit mechanism to reduce exit costs; 3 provinces and cities including Tianjin, Heilongjiang, and Guizhou had lowered operating costs for market players through deepening the reform of relatively centralized administrative permissions, accelerating implementation of technology industrialization policies, expanding the scale of directly-traded electricity etc. respectively; tax burden on some enterprises had significantly decreased after widely expanding the trial of replacing business tax with value-added tax.

u Strengthening the overall planning and use of agriculture-related fiscal funds for poor counties and other work involving people’s livelihood, and overcoming the constraints in economic and social development. Provinces and cities such as Jiangxi, Gansu, Chongqing, Hubei, and Hunan actively implemented the requirements for the overall planning and integrated use of agriculture-related fiscal funds for poor counties, and intensified the overall planning and integrated use of funds; Fujian Province introduced measures strengthening the accountability of use and management of special poverty alleviation funds; Jilin Province actively promoted the implementation of medical care insurance system for the disabled; Guangxi Zhuang Autonomous Region improved accuracy of subsistence allowance by building information platform of subsistence allowance verification.

u Intensifying rectification of problems found in the audit, and promptly solving problems including fund idleness, slow progress of projects, and irregular charges. By the end of June 2016, 38 counties, districts or departments of 17 provinces and cities had revitalized RMB607 million poverty alleviation funds, accounting for 72% of all idle poverty alleviation funds; an association of which the Ministry of Culture is in charge had stopped prize awarding activities set up on its own; Guangdong, Heilongjiang, Jilin, Shenzhen, Ningbo and other regions had revitalized RMB9.074 billion fiscal funds in stock for fields in urgent need etc.; Songpan County of Sichuan Province and Yunyang County of Chongqing City had promptly returned RMB726,400 funds that were irregularly assessed and charged; Liaoning, Henan, and Shandong had promptly promoted construction of sewage treatment, road, and water supply projects, and improved people’s accommodation and transportation conditions.

II. Major Problems Found in the Audit

u Some fiscal funds failed to be fully revitalized or promptly cleaned up. Firstly, RMB2.705 billion fiscal funds in stock failed to be planned for use or cleaned up and revitalized in time, specifically including accumulated funds for agriculture-related projects, debt service reserve from previous years, fiscal special funds accumulated for long, centralized income of administrative departments, central budget for investment projects, preferential funds for scientific and technical activities of overseas students etc. Secondly, RMB16.02 million margin for land disputes failed to be cleaned up and returned to local land departments.

u Some localities and units had problems in their poverty alleviation work, such as failure to fully implement tasks, irregular use of funds, slow progress of projects, and poor effect. Firstly, some localities failed to fully implement poverty alleviation policies and measures regarding poverty alleviation loan interest discount, industrial poverty alleviation, poverty alleviation via photovoltaic industry etc. Secondly, 3 poverty alleviation projects were slow in progress. Thirdly, RMB4.3347 million poverty alleviation funds were irregularly extracted or spent on irrelevant areas; RMB97.0682 million poverty alleviation funds were idle, failing to function. Fourthly, performance of 27 poverty alleviation projects was poor.

u Problems existed in the progression of the reform of delegating powers, improving regulation and optimizing services. Firstly, irregular charges, monopolistic business service charges, or repeated charges existed in sectors including duty fulfillment, intermediary service for administrative examination and approval, import & export etc., involving RMB201 million funds. Secondly, some administrative powers failed to be delegated, taken over, or managed well. Among them the preconditions of production license approval for some industrial products were quite a lot, and 7 items of examination, record, and qualification failed to be canceled; 9 items of administrative examination and approval and intermediary services, which included qualification review on designated retail pharmacies for basic medical insurance, failed to be effectively undertaken after clean-up and delegation; repeated or insufficient supervision existed in 3 areas including the subsequent supervision of first business license then permission. Thirdly, some systems of investment supervision and hospital information failed to be connected in time or had low rates of online processing, affecting the efficiency of government services and the collaboration of information resources.

u Some major projects had problems including slow construction progress and disconnection with relevant plans or supporting projects. Firstly, 1 coal power project was started for construction without being examined or approved, violating regulatory requirements by national coal power planning; 2 projects failed to construct domestic sewage treatment facilities on time, resulting in pollution of river water quality. Secondly, 6 projects were slow in progress, failing to deliver due performance, which involved the construction of public rental housing , urban rail transportation, homes for the elderly, education information systems, railway extension and canal locks.

Attachment:

I. Specific Measures Taken by Relevant Departments and Localities to Promote the Implementation of Major State Policies and Measures

II. Rectification of Problems Found in the Audit

III. Specific Problems Found in the Audit

Attachment I

Specific Measures Taken by Relevant Departments and Localities to Promote the Implementation of Major State Policies and Measures

I. On Promoting Simplification of Administrative Procedures and Delegation of Powers, Combination of the Simplification and Regulation, Optimization of Service Reform, and Decrease of System Cost

u The State Administration for Industry and Commerce (SAIC) focused on building a convenient and orderly market exit mechanism. To further facilitate business registration and reduce exit cost, the SAIC further expanded the pilot reform scope of simple cancellation of enterprises that had not been in operation or had no creditor's rights or debt obligations. By the end of June 2016, there had been 3 provinces and cities, which included Tianjin, Zhejiang, and Hainan, that had launched pilot projects in the entire provinces (cities). 14 provinces including Guangdong had launched pilot projects in some regions. For example, from January to April of 2016, 3,659 enterprises in Ningbo City had been canceled, among which 878 were processed via simple cancellation, accounting for 24% of the total number of cancelled enterprises.

u Tianjin City boosted the effect of the reform of examination and approval with one seal, and deepened the reform of relatively centralized power of administrative approval. After implementation of the pilot scheme of the examination and approval with one seal in Binhai New District, Tianjin City extended relevant solutions to all 16 districts and counties of the city. By regulating standardized service process of approval, building a unified administrative licensing service and performance management system, exploring merging similar administrative approval items and other means, Tianjin City compressed 155 items that were originally examined and approved by 26 departments on average to be handled by 1 unit of the Administrative Examination and Approval Bureau, becoming the first provincial region to implement the examination and approval with one seal in all districts and counties.

u Heilongjiang Province further intensified efforts on implementing the strategy of innovation-driven development. Since 2015, for the problem of difficulty in the application of scientific research achievements by local colleges, Heilongjiang Province had strengthened guiding and promotion. Financial departments on provincial and municipal levels, together with Harbin Institute of Technology (HIT), jointly offered funds to establish HIT Robot Group which mainly aimed at promoting the transformation of scientific and technological achievements. The group produced industrial robots in more than 20 categories and of more than 100 types, and realized RMB305 million sales revenue in 2015. Relying on scientific research resources of colleges, the group had successively introduced 34 incubator projects, and promoted the industrialization of 43 scientific and technological achievements.

u Guizhou Province expanded the directly-traded scale of electricity, and lowered the production costs for industrial enterprises. In April 2016, Guizhou Province established Guizhou Electric Power Trading Center Co., Ltd., and expanded the industrial enterprise users involved in direct trade of electricity to all users that reported installed capacity of more than 1000 kilovolt-ampere, reducing the electricity price for heavy industries of the province by RMB9.17 cents per kWh on average. By June 2016, all 22 thermal power enterprises of the province had signed contracts on direct power transaction with 943 industrial enterprises, involving transaction of 41.7 billion kWh of electricity.

u Tax burdens on some pilot taxpayers in catering industry had decreased significantly after the comprehensive implementation of pilot project of replacing business tax with VAT. For example, in May 2016, for Haihongda (Beijing) Food & Beverage Management Co., Ltd., the amount of tax payable was RMB4.6459 million based on business tax, and its VAT payable after the pilot project of replacing business tax with VAT was RMB2.5924 million, lowering tax burden by RMB2.0535 million, which was a 44.2% decrease in tax; in May 2016, for Jiangsu Xiaochuniang Food & Beverage Management Co., Ltd., the amount of tax payable was RMB450.6 thousand based on business tax, and its VAT payable after the pilot project of replacing business tax with VAT was RMB239.7 thousand, lowering tax burden by RMB210,900, a 46.8% decrease in tax.

II. Strengthening the Overall Planning and Use of Poverty Alleviation Funds and Other Work Regarding People’s Livelihood, and Overcoming the Constraints in Economic and Social Development

u Various localities actively promoted the overall planning and use of agriculture-related fiscal funds. In April 2016, the General Office of the State Council issued Opinions on Supporting the Implementation of Pilot Overall Planning and Use of Agriculture-related Fiscal Funds in Poor Counties (Guobanfa [2016] No.22). Various provinces actively implemented the deployment of the State Council. On the basis of overall planning and use of 20 central fiscal funds, 4 provinces and cities (Jiangxi, Gansu, Chongqing and Hubei) included local fiscal funds in the integration scope, and intensified overall planning and use of funds. Among them, Jiangxi Province included all 58 former soviet central regions and poor counties (cities, districts) of the whole province in the pilot area, and included 14 funds arranged by provincial finance in the integration scope; Gansu Province included all 58 contiguous districts and counties of the whole province that were especially poor in the pilot area, and included 14 funds arranged by provincial finance in the integration scope; Chongqing City included the city’s all 14 national key counties for poverty alleviation and development in the pilot area, included 24 funds arranged by municipal finance in the integration scope and clarified specific operating procedures; by June 2016, 4 districts and counties (Fuling, Nanchuan, Tongnan, Zhongxian) had started pilot work on the level of municipal finance; Hubei Province confirmed the regional scope for finance integration as all 37 poor counties of the province, other counties that had poor villages and people on file referred to it for implementation. Finance on county level available for overall planning and use not only included agriculture-related project funds of fiscal funds on central, provincial, municipal (prefecture), and county levels, but also non-agriculture project funds for economic construction, social development, and support for the development of enterprises etc..

u Yunan Province prioritized revitalized fiscal funds to poverty alleviation. In December 2015, the General Office of the People's Government of Yunnan Province issued Notice on Matters Regarding Raising Additional Special Funds for Poverty Alleviation, which required adjustment in expenditure structure of provincial projects, clean-up of accumulated funds, reduction of unnecessary special funds, and overall planning and optimization of fiscal funds for poverty alleviation. By the end of June 2016, the Finance Department of Yunnan Province had allocated RMB3.1 billion special poverty alleviation funds from provincial finance, which was RMB1.79 billion more than the amount allocated in the entire 2015.

u Fujian Province introduced measures strengthening the accountability of use and management of special poverty alleviation funds. In April 2016, Fujian Province introduced the Provisional Measures on Accountability of Use and Management of Special Poverty Alleviation Funds, which clarified division of responsibilities and accountability mechanisms, and identified 12 kinds of accountability situations, 5 kinds of accountability priorities and 11 kinds of accountability methods for matters regarding use and management of special poverty alleviation funds. Since the introduction of the measures, With respect to special poverty alleviation funds, Fujian Province had filed 36 new cases, involving 50 people, among which 2 had been given Party disciplinary action.

u Jilin Province actively promoted the implementation of medical care insurance system for the disabled. In May 2015, Changchun City began the implementation of medical care and insurance system for the disabled, and included 37 health care programs for long-term disabled people and temporarily disabled people due to diseases in the insurance coverage of medical care for the disabled, and stipulated an 80%-90% compensation rate. By May 2016, 3,892 disabled people of Changchun City had benefited from medical care insurance, and RMB26.19 million in the health care insurance fund had been spent. In 2016, on the basis of summarizing the experience of Changchun City, the People’s Government of Jilin Province expanded the medical care insurance system for the disabled to the whole province.

u Guangxi Zhuang Autonomous Region improved accuracy of subsistence allowance by building information platform of subsistence allowance verification. In June 2014, Guangxi Zhuang Autonomous Region integrated data managed by multiple departments including civil affairs, real estate and housing provident fund, built information platform of subsistence allowance verification, compared and verified the information of people planned to be included in subsistence allowance, and issued social assistance examination and approval opinion based on the verification result. During the 2 years when the information platform of subsistence allowance verification had been in service, it had examined 1.54 million families and 4.04 million people that applied for subsistence allowance, and had detected 160,000 people in total that were unqualified for subsistence allowance.

Attachment II

Rectification of Problems Found in the Audit

I. 38 Counties, Districts, or Departments of 17 Provinces and Cities Intensified Efforts on Revitalization of Idle Poverty Alleviation Funds

For the problem of RMB843 million idle poverty alleviation funds of 38 counties, districts, or departments of 17 provinces and cities found in the audit, all provinces attached great importance to it and ordered relevant localities, departments and units to rectify in a limited time. By the end of June 2016, RMB607 million had been revitalized (accounting for 72%), among which RMB431 million was accelerated in allocation or disbursement, and RMB176 million was planned and used for other poverty alleviation projects; relevant local governments and units had modified 23 policies and measures on strengthening the management of poverty alleviation funds.

II. The Ministry of Culture Urged the Association of which It Is in Charge to Stop Self-established Prize Awarding Activities

After the audit pointed out that China Entertainment Equipment Technology Association, of which the Ministry of Culture is in charge, had set up annual quality project competition of the entertainment equipment industry and annual powerful enterprise competition of the entertainment equipment industry, the Ministry of Culture attached great importance to the problem and actively urged the above-mention unit to rectify. The irregular self-established competition activities had been stopped.

III. Guangdong, Heilongjiang, Jilin, Shenzhen, Ningbo and Other Regions Accelerated the Revitalization and Disbursement of Funds in Stock

After the audit pointed out the problem that Guangdong Province arranged integrated fiscal special funds for the original project and had not spent it in time, the Finance Department of Guangdong Province recovered RMB1.5255 million funds which had not been disbursed.

After the audit pointed out the problem that RMB2.6 million subsidies for fine forage grass seeds for artificial grassland construction in Tongjiang City, Heilongjiang Province had been idle for 2 years without being integrated in time, the People’s Government of Tongjiang City recovered the above-mentioned funds and rearranged the funds for construction of rural drinking water projects for people and animals. All funds had been allocated by the end of June 2016.

After the audit pointed out the problem that RMB4.5 million central subsidies for the elderly health care building of the elderly rehabilitation center of Jilin City, Jilin Province had been idle for long, the People’s Government of Jilin City organized special meetings to study rectification and rearranged the idle funds for the relocation and construction project of Jilin Health School.

After the audit pointed out the problem that RMB8.874 billion funds for 5 districts of Shenzhen City, which were part of the invested by the city and disbursed on construction by districts program, had accumulated, the districts immediately made plans for revitalization of accumulated funds, and arranged the funds for increase of registered capital of state-owned enterprises directly under districts, repayment of government debt, settlement of arrears of historical projects, education and other fields involving people’s livelihood.

After the audit pointed out the problem that RMB191 million supplemental funds for low-rental housing of Ningbo City, Zhejiang Province had been in balance for more than 2 years and failed to be included in management of fiscal funds in stock as stipulated, on May 30, 2016, the Finance Bureau of Ningbo City turned in the RMB191 million balance to central finance for it to be included in public budget management.

IV. 2 Provinces (City) (Sichuan and Chongqing) Promptly Rectified the Problem of Irregularly Levying Charges and Held Those Involved Accountable

After the audit pointed out the problem that the office of the leading group of the construction and coordination of Chengdu-Lanzhou railway of Songpan County, Sichuan Province had levied RMB440,000 thousand vehicle rental fees pro rata on 5 construction units of Chengdu-Lanzhou railway, Aba Prefecture and Songpan County attached great attention to it and actively rectified. By the end of June 2016, the office of the leading group of the construction and coordination of Chengdu-Lanzhou railway of Songpan County had returned rented vehicles and refunded 5 construction units all the levied charges. The disciplinary inspection departments of Aba Prefecture and Songpan County filed cases against relevant responsible people for investigation.

After the audit pointed out the problem that the Construction Industry Association of Yunyang County, Chongqing City had irregularly charged RMB896,500 thousand through linking exams with training, the Urban and Rural Construction Committee of Yunyang County immediately revoked relevant authorization of the Construction Industry Association of Yunyang County. The association had returned the RMB286,400 surplus after deducting training costs, examination fees and related taxes to relevant enterprises.

V. 3 Provinces (Liaoning, Henan, Shandong) Promptly Promoted Project Construction, Ensuring Project Performance

After the audit pointed out the problem that the supporting pipe network project of Dongzhou sewage treatment plant of Fushun City of Liaoning Province had failed to go through handover procedures in time after acceptance, the People's Government of Dongzhou District held special meetings demandting project handover as soon as possible, and specially assigned personnel for implementation of relevant work. On March 16, 2016, project implementation unit and Dongzhou sewage treatment plant completed the handover and checking work, operation of the upgraded sewage pumping station officially started. By June 25, 2016, the project had treated about 15,000 tons of sewage, and reduced 4.50 tons of chemical oxygen demand and 0.23 tons of ammonia nitrogen in total.

After the audit pointed out the problem that the reconstruction project in the urban area of Huangchuan County of Henan National Highway G106 Line failed to start in time, and that RMB48.52 million central fiscal funds failed to function, Henan Province actively proceeded with the project construction. By the end of June 2016, RMB42.31 million project investment had been completed.

After the audit pointed out the problem that 4 water supply units of the continuously-built supporting project in Shandong Province of the eastern route phase I of the South-to-North Water Diversion had not been started for construction, and that 5 units were in slow progress, the People’s Government of Shandong Province supervised the handling of the project, and provided more policy and fund support. By the end of May 2016, RMB6.615 billion investment in total had been made in 9 water supply units, accounting for 78% of the approved total investment by rough estimate.

Attachment III

Specific Problems Found in the Audit

I. On Overall Planning, Revitalization, and Management of Fiscal Funds

u RMB21.1513 million funds for agriculture-related projects were accumulated without being planned for use. By June 25, 2016, the finance bureaus of Long’an County and Hengxian County of Guangxi Zhuang Autonomous Region had not planned and used fund balance of agriculture-related projects from previous years with the excuse that relevant funds should be earmarked, among which Long’an County accounted for RMB13.4646 million and Hengxian County RMB7.6867 million. Yet the funding shortfall in construction of the road to Xining Water Plant at Zhendong poverty alleviation and ecological resettlement area of Long’an County reached RMB14.25 million.

u RMB2.013 billion debt service reserve was accumulated at special fiscal account. Since 2015, the Finance Bureau of Nanjing City, Jiangsu Province had specially arranged budget funds for repayment of government’s maturing debt. However, debt service reserve of the city from 2014 and before remained at special fiscal account without being use for repayment of government’s maturing debt first as stipulated. RMB2.013 billion had remained in balance by June 25, 2016.

u RMB500 million funds for promoting development were accumulated in special fiscal account for more than 3 years. In October 2012, the Finance Bureau of Nanchang City, Jiangxi Province transferred RMB500 million funds for promoting development in 5 special accounts to one-year term deposit, and renewed the same term deposit at the end of each year. By June 25, 2016, the above-mentioned funds had been carried over for more than 3 years without being used.

u RMB135.945 million centralized income of administrative departments failed to be turned in and had carried over for more than 3 years. As required by non-tax revenue management, centralized income of administrative departments should be turned in to finance on the corresponding level and included in budget management. By June 25, 2016, in the unit accounts of the Bureau of Human Resources and Social Security and the Bureau of Civil Affairs of Shanghai City, there had been RMB43.45 million and RMB92.495 million centralized income respectively that had carried over for more than 3 years.

u RMB6.0654 million fiscal funds in stock had accumulated for more than 2 years. In 2012, the Finance Bureau of Wuhan City, Hubei Province transferred RMB7.5117 million balance after the cancellation of the special funding account for rural drinking water safety and the special funding account of self-raised infrastructure to state treasury. By June 25, 2016, RMB6.0654 million of the above-mentioned funds had not been arranged for use.

u RMB5 million construction funds for national cultural and natural heritage conservation facilities had carried over for more than 2 years. In August 2013, the Xianrendong site conservation project in Haicheng City of Liaoning Province received RMB5 million investment from central budget for construction of national cultural and natural heritage conservation facilities, with project duration being from March to November of 2013. The above-mentioned funds had remained in the Finance Bureau of the city by June 25, 2016.

u RMB24.1471 million fund balance of 2 projects including preferential funds for scientific and technical activities of overseas students failed to be cleaned up. By the end of June, 2016, the Ministry of Human Resources and Social Security had not promptly cleaned up RMB24.1471 million fiscal fund surplus of the 2 projects (preferential funds for scientific and technical activities of overseas students, and comprehensive statistics and special investigation of human resources and social security) formed in 2012 and before.

u RMB16.02 million margin for land disputes failed to be cleaned up and returned in time. In 2007, to solve villagers housing renovation, relocation compensation and other mining dispute issues at Panxian-Fuyuan border, land departments of these 2 counties of Guizhou Province and Yunnan Province respectively turned in RMB25 million margin to the Ministry of Land and Resources, and fund use was determined by a coordinating organization jointly founded by the Ministry of Land and Resources, Guizhou Province, and Yunan Province. In October 2010, identification and compensation work for solving the above-mentioned issues were completed and RMB9.6134 in total was expended. By the end of 2016, when the margin turned in by the 2 provinces had no subsequent use, the Ministry of Land and Resources had not returned RMB16.02 million of the remaining margin and interest in time.

II. On Management and Use of Poverty Alleviation Funds, Project Progression, and Policy Implementation

(I) Some localities failed to fully implement poverty alleviation policies and measures regarding poverty alleviation loan interest discount, industrial poverty alleviation, poverty alleviation via photovoltaic industry etc.. The details are as follows:

No.

Policies and Measures

Problem details

1

Interest discount for microcredit

From 2011 to 2015, the fiscal budget of Guangdong Province had arranged RMB325 million interest discount for poverty alleviation microcredit, and a pilot scheme of the poverty alleviation microcredit was launched in 14 counties. By the end of 2015, none of the 14 pilot counties had had any poverty alleviation microcredit service, and the pilot work failed to be expanded.

2

Industry loans for financial poverty alleviation

By the end of 2015, 121 units of the Inner Mongolia Autonomous Region that participated in the industry loans for financial poverty alleviation had repaid the principal and interest of RMB1.0485 billion loans on schedule, and the Finance Department of the Autonomous Region should have arranged RMB24.82 million interest discount. By June 2016, actually only RMB7.472 million interest discount had been arranged, and the remaining RMB17.348 million interest discount had not been in place. After the audit pointed out the problem, the Poverty Alleviation Office of the Inner Mongolia Autonomous Region issued documents requiring acceleration in examination and allocation of interest discount for poverty alleviation.

3

Poverty alleviation via walnut industry

From 2011 to 2015, Shuicheng County and Liuzhi Special District of Guizhou Province had arranged RMB78.7696 million and RMB74.094 million fiscal poverty alleviation funds, respectively, to implement the project of poverty alleviation via walnut industry. The project adopted the method of contiguous planning for planting and failed to distinguish poor and non-poor households, thus covering a low proportion of poor households. For example, among the 53,648 people whom the project of poverty alleviation via walnut industry of Liuzhi Special District had involved in 2014 and 2015, there were 12,388 poor people, accounting for only 23.09%.

4

Poverty alleviation via photovoltaic industry

In 2015, Shanxi Province arranged pilot project of poverty alleviation via photovoltaic industry in 5 counties, and construction of 68 photovoltaic power stations which had been approved was scheduled to be finished in the end of 2015. By the end of May 2016, because land had not been in place and other reasons, 4 projects had not been started for construction, and 17 projects of which construction had been started had not been completed.

In 2015, Gansu Province selected 6 counties for the first batch of pilot units of poverty alleviation via photovoltaic industry, and selected 200 households who had been filed on record from each county to build distributed photovoltaic power generation facilities. The construction was scheduled to be finished in 2015. By the end of May 2016, due to insufficient financing for construction, inadequate promotion by relevant departments and other reasons, 4 counties had not finished construction tasks. Although Qingshui County had finished the construction and started to generate power, 200 poor households of the county who had connected to the grid and started power generation since March 24, 2016 had not received RMB42,600 income from sale of power, because of failure to implement convenience measures including allowing affiliated enterprises of State Grid Corp to issue invoices for sales of power by households of distributed photovoltaic power generation.

According to the Pilot Scheme of Poverty Alleviation via Photovoltaic Industry of Ningxia Hui Autonomous Region for 2015 and amendments, 51.57 MW photovoltaic poverty alleviation project of Ningxia Hui Autonomous Region for 2015 should had been completed and connected to grid before the end of 2015. Due to deficient financing mechanism, poor motivation of enterprises in constructing on credit and other reasons, by June 25, 2016, 6.64 MW had actually been completed and connected to grid, accounting for 12.88% of the planned scale; 32.28 MW had been under construction, accounting for 62.59% of the planned scale; the remaining 12.65 MW had yet to be started for construction, accounting for 24.53% of the planned scale.

(II) 3 poverty alleviation projects were slow in progress. The details are as follows:

No.

Work task or project

Problem details

1

Rural broadband pilot project

In June 2014, 3 ministries including the NDRC issued notice of organizing implementation of pilot project (phase I) of rural broadband in 6 provinces and regions including Gansu. The project implementation period was from 2014 to 2016, and required realization of optical fiber cable connection in at least 95% administrative villages and at least 30% broadband penetration rate in rural households. Because the formulation, examination and approval of the project implementation plan of Gansu Province took a lot of time, project construction had not been started by late June 2016, and 44 subprojects were still in the stage of preliminary design.

2

Industrial poverty alleviation project of breeding famous and high-quality fishes

In November 2012, Raohe County of Heilongjiang Province arranged RMB10 million industrial poverty alleviation funds for construction of industrial poverty alleviation project of breeding famous and high-quality fishes, and planned to finish the projects construction in November 2013. Due to insufficient pre-feasibility studies of the project, slow progress of work by departments in charge and other reasons, the project had not been completed and put into operation by June 25, 2016.

3

Industrial poverty alleviation project of fish culture with net cage in Wusuli River

In October 2014, Raohe County of Heilongjiang Province arranged RMB1 million development funds for ethnic minorities for construction of poverty alleviation project of fish culture with net cage in Wusuli River, and planned to finish the construction in October 2014. Due to slow progress of work by departments in charge and other reasons, by June 25, 2016, 30 net cages of the project had not been completed, and the completed 70 net cages had not been put into use.

(III) RMB4.3347 million poverty alleviation funds were irregularly extracted or used for irrelevant purposes. The details are as follows:

No.

Funds

Problem details

1

Skills training funds for poor labor force 

In November 2015, Yangmadianzi Township, Jianchang County, Liaoning Province extracted RMB39,200 fiscal poverty alleviation training funds on the account of the township government by fabricating the list of trainees, issuing false invoices, and falsifying item of expenditure and other means.

2

Initial funds and poverty alleviation funds for poverty alleviation foundation

From 2013 to 2015, the Poverty Alleviation Foundation of Hebei Province had irregularly spent RMB201,100 initial funds allocated by provincial finance on purchasing mobile phones and vehicles, and had listed RMB36,400 business entertainment expense in the poverty alleviation funds.

3

Funds for poverty alleviation work

By the end December 2015, the Poverty Alleviation Office of Zijin County and of Dongyuan County, Guangdong Province had irregularly used RMB538,700 and RMB60,100 poverty alleviation funds, respectively, allocated by the Finance Bureau of the counties for business entertainment and personnel allowance.

4

Industrial poverty alleviation funds

From September 2013 to May 2016, Hezhang County of Guizhou Province had arranged RMB3.4592 million special poverty alleviation funds from central finance for construction of museums and squares.

(IV) RMB97.0682 million fiscal funds for poverty alleviation failed to function in time due to slow allocation of funds, inadequate project arrangement etc., among which RMB31.7455 million had been idle for more than two years. The details are as follows:

No.

Project/Special Funds

Idle amount (RMB10 thousand)

Details

Total

Idle for 1-2 years

Idle for more than 2 years

1

Yiminkangju project funds and fiscal special funds for poverty alleviation that should receive overall planning and use

826.6

514.3

312.3

Due to change of construction site, late implementation of project etc., RMB8.266 million fiscal funds for poverty alleviation of Jianchang County and Xingcheng City, Liaoning Province had been idle for more than 1 year by June 25, 2016.

2

Funds for ethnic crafts processing and ethnic amusement park projects

244

100

144

Due to slow progress of land acquisition and relocation, the project’s overall design scheme failing to be finished etc., RMB2.44 million fiscal funds for poverty alleviation of Raohe County, Heilongjiang Province had been idle for more than 1 year by June 25, 2016.

3

Funds for 4 industrial poverty alleviation projects including dairy goat farming

277.23

150

127.23

By the end of June 2016, during the implementation of 4 industrial poverty alleviation projects including dairy goat farming in 4 counties of Yunnan Province (Jiangcheng County, Weixin County, Weishan County, and Yiliang County), RMB2.7723 million fiscal funds for poverty alleviation had been idle for more than 1 year due to low participation of farmers, projects failing to be started etc..

4

Relocation funds for poverty alleviation via relocation for 2014

736

736

By the end of June 2016, due to insufficient preliminary work, need for scheme change etc., the relocation projects of poverty alleviation via relocation in Gantang Town of Jingzhou County and Huoshui Township of Zhongfang County, Hunan Province had been slow in progress, and RMB7.36 million poverty alleviation funds had been idle for more than 1 year.

5

Special fiscal funds for poverty alleviation via industrial development, loan interest discount, and Yulu Plan etc.

888.7

861.82

26.88

Due to inadequate arrangement and integration of funds, long examination and approval time in allocation of some funds, some projects being slow in progress and failing to meet conditions for payment etc., by June 25, 2016, RMB8.887 million special fiscal funds for poverty alleviation in Shaoyang County, Xinshao County and Pingjiang County of Hunan Province had been idle for more than 1 year.

6

Funds for poverty alleviation via relocation for 2014

794.94

794.94

Due to slow preliminary examination and approval work of the project etc., by June 25, 2016, RMB7.9494 million funds related to the relocation project of poverty alleviation via relocation in Zouma Village of Zouma Township, Liangyou Village and Ping’en Village of Beituo Town, Zhaoping County, Guangxi Zhuang Autonomous Region for 2014 had been idle for more than 1 year.

7

Funds for interest discount for poverty alleviation loans

216

216

By June 25, 2016, RMB2.16 million among the funds for interest discount for financial poverty alleviation loans in 3 counties (district) (Gangcha County, Datong Hui and Tu Autonomous County, and Ledu District of Haidong City of Qinghai Province) had been idle for more than 1 year.

8

Funds for advancement of the entire village, interest discount for microcredit etc.

1353.95

293.18

1060.77

By June 25, 2016, RMB13.5395 million among the poverty alleviation funds for Lantian County of Shaanxi Province had been idle for more than 1 year due to lack of poor households eligible for the development conditions of industrial support, the original poverty alleviation project failing to meet implementation conditions etc.

9

Management expense of poverty alleviation via walnut industry, and fiscal funds for poverty alleviation that failed to be settled in time

3613.49

2242.38

1371.11

Due to slow allocation of funds, late acceptance of completed projects etc., by June 25, 2016, Shuicheng County, Zheng’an County and Bijiang District of Tongren City of Guizhou Province had had RMB4 million, RMB23.3081 million, and RMB8.8268 million special fiscal funds for poverty alleviation that had been idle for more than 1 year, respectively.

10

Poverty alleviation funds for the project of changing manual ropeway to bridge and construction of new connecting lines.

755.91

623.65

132.26

Due to slow progress and late overall arrangement of project etc., by the end of June 2016, RMB1.3226 million of the poverty alleviation subsidies that Pingwu County of Sichuan Province received from upper finance in 2013 had remained accumulated in special fiscal account; RMB6.2365 million of the special provincial poverty alleviation funds received in October 2014 for the project of changing manual ropeway to bridge and construction of new connecting lines had been idle for more than 1 year.

Total

9706.82

6532.27

3174.55

(V) Due to insufficient pre-feasibility studies, or inadequate operation and management of projects etc., 27 poverty alleviation projects failed to realize the expected benefits, involving RMB13.1728 million. The details are as follows:

No.

Project

Problem details

1

Poverty alleviation projects of villages with ethnic minority features, and rice base construction

In 2012 and 2014, the poverty alleviation projects of villages with minority features, and rice base construction in Raohe County of Heilongjiang Province received RMB6 million and RMB540,000 fiscal poverty alleviation funds, respectively. By June 25, 2016, the project of village with minority features had been idle since completion in September 2014, and a solar greenhouse built for the rice base project had been idle since completion in August 2015, and 7 greenhouses had been rented to non-poor households for growing vegetables, failing to realize the expected benefits.

2

25 industrial poverty alleviation projects including pig farming

From 2013 to 2015, due to insufficient project research and loose examination by poverty alleviation, finance and other departments of the counties, 25 industrial poverty alleviation projects including pig farming in 13 counties including Malipo County in Yunan Province had had the problem of plants and livestock being sold or dead. RMB6.6328 million poverty alleviation funds failed to realize the expected benefits.

III. On Implementation of Policies of the Reform of Delegating Powers, Improving Regulation and Optimizing Services

(I) Some units had problems of irregular charges, monopolistic business service charges, or repeated charges in sectors including duty fulfillment, intermediary service for administrative examination and approval, import & export etc., involving RMB201 million.

Details of the problem of irregular charges:

No.

Department (unit)

Charges

Object of charges

Details

Time

Amount (RMB10 thousand)

1

Expressway brigade of traffic police detachment of the Public Security Bureau of Shangqiu City, Henan Province (former 3rd brigade of traffic police of the Public Security Bureau of Shangqiu City) and 4 people’s governments at grass-roots level

Working expenses for temporary use of land, fees for ensuring smooth traffic etc.

Some construction enterprises of Zhengzhou- Xuzhou Railway Passenger Special Line

Setting up charging items on their own

December 2012-September 2014

112.31

2

Police traffic detachment of the Public Security Bureau of Ya’an City, Sichuan Province

Traffic safety publicity expenses

9 units including Ya’an Driving School and Yucheng Driving School

Setting up charging items on their own

2013-June 2016

863.19

3

Sichuan Digital Certificate Management Center Co., Ltd. and its agency - Mianyang Yutai Trading Co., Ltd.

Personal digital certificate fees for institutional business

Enterprises that ran bidding business on the platforms of government services and public resources trading service center of Mianyang City

Charging fees without approval

2013-June 2016

193.54

4

Affiliated Science and Technology Centre of the Association of China Electric Power Enterprises

Training fees, fees for technical services

Institutions and units that provided management services for demand side of industrial power

Setting up qualification assessment items on its own and charging training fees and service fees.

2015

171.08

5

Thunder and Lightning Protection Testing Center of Shenyang City, Liaoning Province

Fees for evaluating design of lightning protection devices, fees for testing lightning protection devices

Units that entrusted the center for evaluating and testing lightning protection devices

Corresponding cost should be covered by the entrusted approval department, not the applicant.

April 2016-June 25, 2016

114.54

6

Urban and Rural Planning Research Center of Harbin City, Heilongjiang Province

Printing fees for publishing basic data of planning control line

Project units that transacted the business

Corresponding cost should be covered by the entrusted approval department, not the applicant.

January 2016 – June 25 2016

95.50

7

Association of Geological Disaster Prevention of Guangdong Province

Fees for review of program of geological environment protection & recovery management in mine area

Unit that formulated the program

The review cost should be covered by the entrusted approval department, not the applicant.

August 1, 2015- May 31, 2016

20.66

Details of operating service charges by affiliated economic entities or associated units of customs institutions relying on administrative power or resources

No.

Department (unit)

Charges

Object of charges

Time

Amount (RMB10 thousand)

1

Affiliated economic entities of China E-Port Data Center of the General Administration of Customs

Sales of 4 security products of the E-Port

Import & export enterprises using the China E-port platform

2015

6800.54

2

Dongfang Electronic Payment Co., Ltd.

Charges for the use of basic functions and additional functions of  third-party payment of customs duties electronic payment system,

Enterprises paying customs duties online

2015

8296.82

In addition, because land department and forestry department were on different basis of forest area demarcation during land acquisition, and these 2 departments of Shanxi Province failed to coordinate effectively, project units that undertook railway construction in Shanxi Province from 2008 to 2015 were repeatedly charged RMB34.8902 million compensation for land requisition.

(II) Some examination, record, and qualification matters failed to be canceled, and had many preconditions.

u Preconditions of production approval for some industrial products were quite a lot. It was required by the implementation details on production approval for relevant industrial products issued by the Administration of Quality Supervision that, enterprises applying for production license for industrial products should submit proof of environmental protection, land certificate and other material as preconditions for approval, which were not explicitly required by Regulations on the Administration of Production Licenses for Industrial Products in People's Republic of China, 20 categories and 50 types of products were involved, making procedures of administrative approval complicated and cumbersome for enterprises.

u In September 2015, Shenzhen Municipal Government made it clear that Shenzhen Transportation Commission shall stop implementing 5 types of work including quality and credit assessment of motor vehicle driver training institutions, and record of opening and cancellation of enrollment management offices (registration offices). By the end of June 2016, Shenzhen Transportation Commission had not stopped the above-mentioned work of assessment and record.

u 20 safety pre-evaluation reports of construction projects were still on record. In 2015, the Administration of Work Safety issued measures requiring that except for construction projects stipulated in the 7th article of the measures, safety conditions and written report of comprehensive facilities analysis of production units are eligible for future reference. However, Guizhou Province had not accordingly modified the Measures for the implementation of the "three simultaneous" supervision and management of safety facilities of construction projects of industrial enterprises including metallurgy industry in Guizhou Province. From May 1, 2015 to June 25, 2016, production safety supervision and management departments of Guizhou Province, Zunyi City, Gui’an New District, Guiyang City and a subordinate district had still put 20 safety pre-evaluation reports of construction projects on record or numbered and registered them, and had issued replies to some reports.

u The troubleshooter of QC group activities professional qualification had actually not been canceled. In 2014, the State Council issued document to cancel troubleshooter of QC group activities. Investigation indicated that the professional qualification was actually replaced by troubleshooter of mass quality management activities of national machinery industry in January 2007 by China Machinery Industry Quality Management Association, which was managed by the State-owned Assets Supervision and Administration Commission. In 2015, the association continued to certificate and register troubleshooter of mass quality management activities of national machinery industry and train new applicants of the professional qualification.

(III) Some administrative examination and approval and intermediary services failed to be effectively undertaken after clean-up and delegation

u Supporting security measures failed to be introduced in time after the clean-up of 6 types of intermediary services for administrative examination and approval including confirmation of foreign pilot licenses. In February 2016, the State Council required that 6 types of intermediary services for administrative examination and approval of the Civil Aviation Authority including confirmation of foreign pilot licenses should no longer be entrusted by applicants to be handled by intermediary institutions, and that approval departments should entrust relevant institutions to conduct technical services. By June 26, 2016, the Aviation Authority had not introduced specific security measures supporting the above-mentioned reform. Therefore, some entrusted institutions used self-raised funds to conduct technical services.

u The administrative approval matter of qualification of human organ transplant practitioners failed to be undertaken smoothly after delegation. In July 2014, the State Council require that qualification of human organ transplant practitioners should be delegated to provincial administrative departments of health and family planning. Because relevant documents guiding the undertaking work of the administrative approval matter had not been introduced, by June 25, 2016, only 6 provinces, regions and cities (Shaanxi, Gansu, Sichuan, Chongqing, Guangxi, and Hainan) had formulated documents, plans or procedures for the management of qualification of human organ transplant practitioners during the transition period, and had undertaken corresponding work; the remaining 25 provinces had not made clear effort on relevant work.

u After the cancellation of qualification examination of designated retail pharmacies of basic medical insurance, and qualification examination of designated medical institutions of basic medical insurance (hereinafter referred to as qualification examination of 2 designations), undertaking work was insufficient. In October 2015, the State Council issued documents that canceled the qualification examination of 2 designations, and instructed all regions and departments to earnestly strengthen supervision during and after the matter. By late June 2016, 15 medical pooling regions including provincial level of Henan Province had not formulated and published administration measures for service agreements of medical institutions, and had suspended applications of all types of medical institutions. From October 2015 to June 25, 2016, no new medical institution had been subsumed into agreement management, making it inconvenient for people on medical insurance to seek medical service.

(IV) Coexistence of repeated supervision and insufficient supervision during and after the matter.

u Repeated supervision by commercial departments and food and drug supervision departments existed in the distribution of liquor industry. As stipulated by the Measures for the Administration of Food Business License (No.17 decree of 2015 by the China Food and Drug Administration), food business license should be obtained for liquor distribution; while the Administration of Liquor Distribution (No.25 decree of 2005 by the Ministry of Commerce also required that operators registration system and traceability system be applied to liquor distribution, resulting in repeated supervision. By the end of June 2016, except for 3 provinces (Sichuan, Guangdong and Hainan) which had transferred all management functions of liquor distribution to food and drug administration departments, other provinces still required that liquor operators to apply for liquor distribution record registration or administrative approval after obtaining food business license.

u Some pharmaceutical enterprises were not included in collaborative supervision after the first business license then permission reform. From January to May of 2016, among the pharmaceutical enterprises registered and set up by means of the first business license then permission by the trade and industry bureaus of Longhua District and Haikou City, Hainan Province, there had been 19 pharmaceutical enterprises whose partial operating activities needed to obtain drug production or business license from food and drug administration departments. The department of industry and commerce failed to fulfill the two notifications duty as stipulated by the State Council, and did not promptly notify food and drug administration departments of the registration situations of enterprises. By June 2016, 5 enterprises had not been included in the business supervision scope of food and drug administration departments.

u Supervision was not in place, and 2 cement companies produced 571,500 tons of cement without any license using outdated equipment which should have been scrapped. Since 2013, Yunan Cement Co., Ltd. and Hongqi Cement Co., Ltd. of Yunyang County of Chongqing City had produced 571,500 tons of cement without any license using 5 cement mills which should have been scrapped. While in May 2015, the People’s Government of Yunyang County of Chongqing City was aware that the production license of Hongqi Cement Co., Ltd. of Yunyang County had already expired yet it privately started production at night, the government failed to take effective regulatory measures to stop the act of production with no license by the above-mentioned enterprises.

(V) Information platform construction was not in time or had low rates of online processing, affecting the efficiency of government.

u 63 administrative approval matters failed realized the required one-window acceptance and online processing, and the sunny examination and approval failed to be fully implemented. In December 2014, since the launch of the government service hall of the National Energy Administration at the NDRC and online processing system of administrative examination and approval, the National Energy Administration had handled 84 administrative approval matters, among which 63 matters were not accepted and handled via the government service hall of the National Energy Administration at the NDRC and the online processing system of administrative examination and approval, and situations regarding progressing process were not made public on its initiative.

u 13 counties (cities) failed to be included in management by regulatory platform of online examination and approval of investment projects. In December 20124, the State Council required that the regulatory platform of online examination and approval of investment projects should realize nationwide vertical connection, cover the whole country and speed up online handling, and also required trial operation before the end of 2015. By June 25, 2016, the Jiangsu Provincial regulatory platform of online examination and approval of investment projects had not realized comprehensive vertical connection on 3 levels of province, cities and counties, and 13 counties (cities) including Binhai County had not been included in management by Jiangsu Provincial regulatory platform of online examination and approval of investment projects.

u Construction of electronic medical record system by 14 hospitals failed to be completed, which counted against promotion of regional collaboration in medical and health information resources and services. The State Council required active promotion by hospitals in construction of hospital information system which focused on hospital management and electronic medical records, to be completed before the end of 2015, and gradual realization of data exchange and share in basic hospital business information system. By June 25, 2016, among the 75 hospitals of Jilin Province which had participated in the reform of public hospitals on county levels, 14 hospitals still had not built the electronic medical record system.

IV. On Construction of Major Projects

u The 2×1 million KW ultra-supercritical coal-fired power generation project in Bohe, Maoming was started for construction without being approved. At present, for coal power projects, China implements the management measure of state controlling volumes and local governments selecting and deciding projects following the construction plan made by state based on total volume control. From December 2011 to May 2013, Guangdong Provincial Development and Reform Commission had applied for approval of the 2×1 million KW ultra-supercritical coal-fired power generation project in Bohe, Maoming to the National Energy Administration for 3 times but failed to obtain it. In February 2014, Bohe Coal Power Co., Ltd. of Guangdong Yudean Group started construction of the project without any approval. By June 2016, RMB3.273 billion in total had been invested.

u Several affordable housing projects were not equipped with supporting domestic sewage treatment facilities, causing pollution of river water by domestic swage. The audit spot-checked 5,861 sets of affordable housing built in Chaoyang District of Changchun City between 2009 and 2012. By the end of June 2016, 4,178 sets had been allocated for residence without going through environmental impact assessment or completion acceptance. Because the Administrative Committee of Chaoyang Economic Development Zone of Changchun City failed to promote construction of supporting domestic sewage treatment facilities, domestic sewage of the above-mentioned residents was directly discharged into sewer network and affected the water quality of nearby river.

u Expansion projects of several sewage treatment plants were slow in progress, leaving a lot of sewage directly discharged into rivers. In April 2013, Gansu Provincial Development and Reform Commission approved the expansion project of Longxi County sewage treatment plant with a planned investment of RMB67 million and set to be completed in 2014. Due to insufficient work in promoting land acquisition and relocation and lack of timely raise of construction funds by the People's Government of Longxi County, project construction was not started until September 2015. By June 2016, only RMB33 million had been invested. Meanwhile, due to insufficient sewage treatment capacity, each day 2500 to 3000 tons of domestic sewage in Longxi County were directly discharged into rivers without any treatment.

u Public rental housing projects of 4 districts of Beijing City had relatively low completion rates and allocated residence rates. In 2015, according to the Notice on Implementation of Targets Management of Allocated Residence of Public Rental Housing (Jianbanbaohan [2015] No.213) by the General Office of the Ministry of Housing and Urban Construction, “for public rental housing of which construction is started before the end of 2012, in principle, 90% of the housing should be allocated for residence before the end of 2015.” In 2012, construction of 16,560 sets of public rental housing in 4 districts of Beijing City (Chaoyang, Haidian, Fengtai, and Shijingshan) was started. By late June 2016, among these public rental housing, 5,012 sets had been completed in construction, and 3,419 sets had been allocated for residence, with a completion rate and allocated residence rate of merely 30.27% and 20.64%, respectively.

u Operating performance of project phase I of line 6 of Kunming urban rail transportation was poor. In September 2009, Kunming Rail Transportation Group Limited started project phase I of line 6 without obtaining approval, and started trial operation after completion in June 2012. Construction of project phase II was started in July 2014 after obtaining approval from Yunnan Provincial Development and Reform Commission. By the end of June 2016, project phase II had not been completed, making it unable for project phase I to directly connect the airport with urban areas. As a result, it was inconvenient for passengers to transfer and passenger traffic continued to decline. The operation was suspended in March 2016, and there had been a RMB461 million cumulative loss in the trial operation.

u Construction of a few nursing homes was 3 years overdue. In 2012, the National Development and Reform Commission (NDRC) allocated RMB4 million investment from central budget for the new nursing home project in Fengming Town, Yunyang County, Chongqing City and required RMB2.5 million supplementary funds for project construction to be raised by locality and completion of construction in 2013. Due to poor project management, and insufficient supplementary funds etc., structural work of the project had been in a suspended state since January 2014, and the invested fiscal funds failed to function in time.

u Construction of railway extension project of Kemen Port of Fuzhou was 4 years overdue. The railway extension project of Kemen Port of Fuzhou had a total investment of RMB1.364 billion and was planned to be completed in October 2011. By June 2016, because the original plan of earth-rock excavation treatment scheme could not be implemented, 3.2-kilometer railway of Guishan part of the project had not been completed, and construction of railway extension project of Kemen port had been 4 years overdue.

u Construction of the project of service system of basic education resources was slow. In accordance with planning of Opinions on Implementation of Construction of the Three Connections and Two Platforms for Basic Education Informatization in Tianjin, construction of major infrastructure for the Three Connections and Two Platforms should have been completed in 2014. By June 2016, subproject of the Three Connections and Two Platforms - the service system of basic education resources of Tianjin, had merely finished bidding invitation for phase I and not been started for construction, leaving RMB30 million fiscal funds which had been in place since 2014 idle.

u The double-lined ship lock project of South Weishan-Yicheng part of Beijing-Hangzhou Canal failed to be started for construction due to failure of land supply. The double-lined ship lock project of South Weishan-Yicheng part of Beijing-Hangzhou Canal was divided into 2 projects – Hanzhuang double-lined ship lock and Wannian double-lined ship lock, and was approved by the NDRC in November 2014. The estimated investment was RMB1.217 billion and construction was supposed to start in 2015. By the end of May 2016, RMB109 million and RMB173 million funds needed for land acquisition and relocation, which should have been implemented by the people’s government of Jining City and Zaozhuang City of Shandong Province – the departments in charge of land supply for the project, had not been implemented. Therefore, land was unable to be supplied for the project as scheduled and construction failed to be started on time.