What Are Capital Projects Funds?

Capital construction funds are funds used for productive and non-productive capital construction in accordance with the state's capital construction investment plan. It is mainly used in the construction and installation of engineering, equipment, tools, appliances and other basic construction. The construction unit uses the capital construction funds in accordance with the approved design documents, and finally forms the property delivered, the investment transferred out, the investment that should be written off, and other expenses that should be written off. After the capital construction project is completed and transferred to the production or use unit, it belongs to the fixed asset part and constitutes the fixed capital of the enterprise unit; if it belongs to the current asset part, it constitutes the liquidity of the enterprise unit. The funds used for capital construction in China are theoretically derived from the accumulated funds in national income, depreciation funds for existing fixed assets, and some consumer funds that may be converted. In actual management work, they are classified into different management systems and channels. ^[1]