Leading Group office for Inspection of Implementation of Policy Pertaining to Expansion of Domestic Demand and Promotion of Economic Growth

Since the 4th quarter of 2008, the global financial crisis continued to spread and expand with a fluctuating financial market and a global economy in serious depression. Faced with the grave and complicated economic situation, the Chinese government has resolutely adopted an economic stimulus package including a series of positive financial policies and moderately easy monetary policies so as to offset the detrimental influence of international financial crisis on Chinese economy. In order to ensure a smooth implementation of those policies and measures, the central government has established a leading group for inspecting the implementation work (hereinafter referred to as the “leading group”) led by the Central Commission for Discipline Inspection of CPC and the Ministry of Supervision, with the National Development and Reform Commission, the Ministry of Finance and the National Audit Office and other departments as its members. In the past year, the leading group has resolutely implemented the decisions of the central government, conscientiously performed its duties, organized and coordinated relevant state organs and 31 provinces and Xinjiang Production and Construction Corps. As a result, remarkable achievements have been scored.

First, to formulate policies and regulations.

A series of documents of standardization have been formulated successively, clearly defining the principal responsible party, fund arrangement, project management, aims and requirements of fund use of all the newly-invested projects by the central government, and also the ranges, contents and focuses of supervision and inspection as well as responsibilities, missions and work procedures of the inspecting groups. All these efforts have provided explicit criteria and powerful guarantee for strengthening management of the central government’s new investment and promoting standardized and orderly inspection work.

Second, to conduct supervision and inspection.

From the end of November 2008 to the end of January 2009, from the end of March 2009 to the end of April 2009 and from mid-October 2009 to mid-November 2009, 24 inspection groups from the central government were sent respectively to 31 provinces, Xinjiang Production and Construction Corps, relevant state organs and enterprises owned by the central government to conduct a three-round inspection. They focused their work on whether project planning and registration complied with requirements of scientific development, whether the examination and approval of projects and construction procedures were legal, whether the fund was managed in a strict and standardized way, whether constructions met safety requirements, and how the relevant departments implement the criteria of “three 100%s” (100% of projects are started, 100% of local funds are allotted, 100% of problems discovered are rectified). During the third round inspection, focus was on projects with large amounts of investment and closely related to national economy and people’s livelihood, especially key projects in the fields of railway, communications, hydraulic power, civil aviation and electric power. 51 experts were invited to participate in the inspection.

At the same time, the National Development and Reform Commission sent successively more than 100 inspection teams to check more than 3,000 central-invested projects. The focus was on the implementation of plans, allocation of local supporting funds, construction progress and project quality; the Ministry of Finance seconded more than 10,000 person-times from financial departments at all levels and commissioner offices to inspect fund management of over 11,500 central-invested projects; the National Audit Office organized over 1,000 people and sent them to carry out special audits, which covered 17 provinces, the Ministry of Railway, part of state-owned commercial banks and enterprises. 31 provinces (regions, municipalities) and Xinjiang Production and Construction Corps also dispatched special inspection teams to conduct several rounds of inspection on the implementation of projects that were to expand domestic demand and investment.