Abstract: Land consolidation plays an important role in keeping dynamic balance of amount of cultivated land, increasing land profit and improving ecological environment. Land consolidation was formally put forward and performed in the late stage of 1990s in China, and it is estimated that 2 billion Yuan would be invested every year. It is very important for reasonable use of the fund to rationally budget for the project of land consolidation. Based on about 200 projects in the year 2000, 2001 and 2002, problems and their producing reasons for these project budgets were deeply analyzed in this paper. At the same time, some suggestions and measures aiming at solving of these issues were put forward in the hope of providing scientific basis for reasonable and normal use of the project fund.