The policy of financial reward and compensation for the construction of village-level public welfare undertakings, which is determined by the CPC Central Committee and the State Council, is of great significance in improving farmers' production and living conditions, promoting the construction of new socialist countryside, promoting rural social management innovation and grassroots democratic political construction. Finance and rural comprehensive reform departments at all levels should attach great importance to it, organize it carefully, make careful arrangements, and implement it steadily, so as to ensure that the care of the CPC Central Committee and the State Council for the peasants is implemented.

Legal basis: Organic Law of Villagers' Committees of the People's Republic of China.

Article 1 This Law is formulated in accordance with the Constitution in order to ensure the autonomy of rural villagers, let them handle their own affairs according to law, develop rural grassroots democracy, safeguard their legitimate rights and interests and promote the construction of a new socialist countryside.

Article 2 Villagers' committees are grass-roots mass self-governing organizations for villagers' self-management, self-education and self-service, and implement democratic elections, democratic decision-making, democratic management and democratic supervision.

Villagers' committees handle public affairs and public welfare undertakings in their villages, mediate civil disputes, help maintain social order, and reflect villagers' opinions, demands and suggestions to the people's governments.

The villagers' committee shall be responsible and report its work to the villagers' meeting and the villagers' representative meeting.