At the executive meeting on July 27, the State Council urged taking measures to solve problems found in an audit, continue to streamline administration, and fight against sluggish governance and illegal charges to ease burdens on enterprises, break departmental interests and accelerate key projects with coordinated financial funds and increasing social capital.
Positive results have been made in reforms in administration streamlining and service optimization, while some problems were also found in the audit, according to the meeting.
The audit revealed that fiscal funds and government investment could not effectively flow to projects and enterprises or be well placed in the real economy to leverage investment.
Some insiders pointed out that diversified financing channels and fragmented and department-orientated distribution can limit fund integration. Some regulations could not work well with policies on fiscal funds, and grassroots governments are not willing to integrate funds due to various concerns.
Experts suggested that while activating and coordinating fiscal funds from government departments, related support mechanism and accountability should be established.
In response, the meeting asked to use carrots and sticks in the implementation of key policies and projects. Funds left unused for two years should be reallocated and diverted to ongoing undertakings, and related personnel will be held responsible.
Meanwhile, efforts should be made to break departmental interests in certain government organs, solve other problems affecting progress and efficiency of major projects, and promote healthy growth of the real economy.