China News Service, July 21. Liu Shihu, head of the Fixed Assets Investment Department of the National Development and Reform Commission, said on the 21st that the 2020 "Government Work Report" clearly plans to renovate 39,000 old urban communities, and the central budget has invested 54.3 billion yuan. All orders were completed, and the task of "double the transformation of old communities in cities and towns and double the investment arrangements within the central budget" was realized.

Data map: Old urban district. Photo by Jiang Xuelin

  On the 21st, the State Council Information Office held a regular policy briefing of the State Council to introduce the "Guiding Opinions on Comprehensively Promoting the Reconstruction of Old Urban Communities". Liu Shihu made the above statement when answering questions from reporters.

  According to Liu Shihu, in accordance with the deployment of the Party Central Committee and the State Council, the National Development and Reform Commission actively arranges investment within the central budget to support the transformation of old urban communities. With the approval of the State Council, starting from 2019, the transformation of old urban communities will be included in the affordable housing project, and the central government will provide financial subsidies.

  In 2019, it plans to renovate 19,000 old communities in cities and towns. The National Development and Reform Commission has allocated 25 billion yuan to support the investment in the central budget in the special affordable housing project in two batches; the 2020 "Government Work Report" clearly plans to renovate old urban communities 3.9 10,000, and the central budget’s investment arrangements of 54.3 billion yuan have all been issued so far, realizing "doubling the task of rebuilding old communities in cities and towns and doubling the investment arrangements within the central budget."

  In the transformation of old communities in cities and towns, the investment in the central budget mainly supports the construction of community-related supporting infrastructure such as water supply, drainage, and roads, as well as the construction of supporting public service facilities in the community and surrounding areas such as elderly care, childcare, barrier-free, and convenient services. Among them, the investment within the central budget will be tilted towards public welfare transformation such as drainage.

  Liu Shihu pointed out that the National Development and Reform Commission has issued special management measures in order to strengthen the special management of investment guarantee housing projects within the central budget, and will supervise and guide various localities to strengthen project reserves and accelerate the advancement of the preliminary work of the project, taking full consideration of local financial affordability and strict prevention Increase the risk of local government debt, carefully review and check, and decompose and implement the investment in the central budget to projects with a solid foundation for the preliminary work and conditions for starting and construction.

  After the investment plan is issued, continue to do a good job of supervision during and after the event, combine online monitoring and on-site investigation, guide the project unit to solidly promote the start and construction of the project, promote the formation of physical workload as soon as possible, avoid fund precipitation and idleness, and give full play to the central budget Investment returns.

  Liu Shihu said that according to preliminary statistics, since the 18th National Congress of the Communist Party of China, from 2013 to 2019, the cumulative total investment in urban affordable housing projects has exceeded 10 trillion yuan, and the average annual completed investment is about 1.4 trillion yuan, which is within the central budget. Central government subsidies such as investment are 1.4 trillion yuan, with an annual average of about 200 billion yuan. While improving the living conditions of people in need of more than 100 million people, the construction of affordable housing projects has played an important supporting role in stabilizing investment growth and playing a key role in investment.

  During the "14th Five-Year Plan" period, the National Development and Reform Commission will continue to give full play to the guiding and leading role of the central and local fiscal funds such as the central and local budgetary investment, effectively and orderly and comprehensively promote the transformation of old urban communities, improve people's livelihood, enhance the quality of living, and promote Urban renewal, promotion of urbanization of county towns, expansion of effective investment, stimulating consumption of residents, and promoting the formation of a strong domestic market.

  In response to the work done by finance at all levels in the transformation of old communities, Zhao Zhihong, head of the Department of Comprehensive Affairs of the Ministry of Finance, introduced that the transformation of old communities is of great significance for ensuring people's livelihood and promoting economic development. In accordance with the decisions and deployment of the Party Central Committee and the State Council, all levels of finance have attached great importance to the transformation of old communities, and actively supported them, and introduced a series of policy measures.

  In terms of funding, first, the central government has incorporated the transformation of old communities into the affordable housing project and provided financial support to local governments. In 2019 and 2020, 30 billion yuan and 30.3 billion yuan were allocated respectively to support local use for the transformation of old communities. Up to now, the subsidy funds for 2020 have been fully released. The central subsidy funds mainly support the basic transformation content. The basic transformation content is mainly used to meet the basic safety needs and basic living needs of residents.

  "On the second level, this guidance also puts forward clear requirements for financial support at all levels for the transformation of old communities. Provincial, city and county finance must provide corresponding financial support, and the transformation of old communities can be included in the sale of state-owned housing. The scope of use of income stock funds is to coordinate the use of various types of funds involving residential communities." Zhao Zhihong said.

  In terms of tax and fee policies, a series of policies to support the transformation of old communities have been introduced. The first is that for professional business units participating in the transformation of old communities organized by the government, the expenses incurred in the transformation of the facilities and equipment and other supporting assets that have obtained ownership can be deducted before tax according to regulations; maintenance and management expenses incurred , Can be included in the current expenses before tax deduction according to regulations.

  Second, in the transformation of old communities, for organizations that provide services such as elderly care, childcare, and housekeeping for the community, income from providing related services can be exempted from value-added tax according to regulations, and 90% of the taxable income is reduced.

  The third is that the real estate and land used to provide community pension, childcare, and housekeeping services can be exempted from deed tax, real estate tax and other taxes as required.

  In addition, Zhao Zhihong also stated that the current use of special bonds has also been extended to the renovation of old communities and supports local governments to raise funds for the renovation of old communities by issuing special bonds. The promulgation and implementation of these fiscal and tax policies are believed to play a positive role in supporting and promoting the transformation of old communities.