The meaning of changing appropriation to loan is as follows:

Changing appropriation to loan refers to the state changing the capital construction investment in the national budget from appropriation to loan in order to improve the efficiency of the use of financial funds. This policy was tried out from 1979 to 1989. "Appropriation instead of loan", which is the abbreviation of changing the state's allocation for capital construction investment into loan, is an important reform of the fixed assets investment management system. "Appropriation to loan" is the original capital construction investment that is included in the state's direct free allocation. Except for projects that can be repaid without compensation, it is changed to be solved by loans from the People's Construction Bank of China.

correspondingly, the loans recovered by CCB, which are arranged by the central budget, shall be handed over to the central finance; Belong to the local budget arrangement, in principle, to the local finance department. "Allocate to loan" implements differential interest rate. The interest on the "change from appropriation to loan" project shall be calculated by the Construction Bank on an annual basis. In principle, the borrower should use the enterprise's own funds first, and then use the profits before paying income tax according to the state regulations.

significance and function

after the founding of the People's Republic of China, capital construction investment was allocated by the state budget for free, which played a positive role in the establishment of the industrial system and the national economic system from scratch. In 1979, in order to further implement the economic responsibility system in capital construction departments and construction projects, enhance values and improve the investment effect, the pilot project of "changing appropriation to loan" was started.

It was fully implemented in p>1985. At the same time, it was stipulated that non-profit construction projects could be exempted from repayment of principal and interest after approval. In 1986, it was changed to: all non-business construction projects such as administrative institutions and institutions that have the ability to repay without compensation will be cancelled, and the system of free appropriation will still be restored. Since then, the capital construction investment directly arranged by the state budget has been divided into two parts: the investment allocated in the state budget and the investment of "changing from appropriation to loan" in the state budget.

loan method

First of all, the financial department will allocate the budgetary funds belonging to the "appropriation to loan" part to the Construction Bank at the same level according to the financial level, and then the Construction Bank, in conjunction with the competent authorities, will issue annual loan indicators to the construction units for the construction projects that implement the "appropriation to loan" according to the approved annual capital construction plan and the "appropriation to loan" investment plan, which will serve as the limit for borrowing during the year.