Vice-Premier Wang Yang called for stricter inspection of funds set aside for agricultural development in a meeting on April 14.
In some cases the funds are being misused, including being wasted or through fraud, as the government has been investing more over recent years to help rural areas, farmers and generally develop agriculture, Wang said.
Consequently, the government has carried out a nationwide program to overhaul the use of the funds.
The overhaul aims to detect and address problems, establish regulations and fix loopholes, said Wang, adding that the overhaul will focus on areas where there is a serious problem of misuse, and will punish those who use the funds for fraudulent purposes.
He also said that the authorities should take the overhaul as an opportunity to carry out a pilot program to reform the management of agricultural funds, to ensure that such funds are operated legally and efficiently.