china revises law to better manage government money
Last Updated : GMT 00:33:47
Arab Today, arab today
Arab Today, arab today

China revises law to better manage government money

Arab Today, arab today

Arab Today, arab today China revises law to better manage government money

Chinese government money
Beijing - XINHUA

China's top legislature on Sunday adopted a revision to the Budget Law which clears ambiguity and closes loopholes in managing the trillions of yuan involved in fiscal revenue and spending.
This is the first time the Budget Law has been revised since it took effect in 1995.
As the law is closely interrelated with China's ongoing fiscal reform, it took the country an unusually long time to revise it -- seven years to draft a bill for the first reading in 2011 and four readings to get it passed.
Members of the Standing Committee of the National People's Congress (NPC) adopted the bill through a vote at the bi-monthly legislative session, saying that the revision has responded to improvement in the fiscal system and the most controversial and concerning problems.
In 2014, China's fiscal revenue is budgeted to be 13.9 trillion yuan (2.26 trillion US dollars) and government spending to be more than 15 trillion yuan.
The management of such a huge amount of public funds and supervision of its use remain key challenges for the Chinese government.
The revision to the law is a big move to further the fiscal reform and establish a modern fiscal system, said Zhang Dejiang, chairman of the NPC Standing Committee, at the closing meeting of the session.
The revised law will help establish a complete and transparent budgetary system, transform government functions and modernize governance, Zhang said.
The revision of the law laid the foundation for fiscal reform in the next step, Prof. Liu Jianwen with the Law School of Peking University told Xinhua.
"The first revision took such a long time because a number of disputes concerning the direction of fiscal reform had not been settled then," Liu said.
"If the current fiscal reform measures were not acknowledged by legislation, new moves would be held back."
LOCAL GOVERNMENT BONDS
One of the most controversial issues is local government bonds. The old version of the law banned local governments from issuing bonds, but in practice some local governments have sought back doors to raise funds, mostly to fund infrastructure. The money has remained unsupervised.
To tackle this situation, the revision green-lights bond sales by provincial-level governments but places them under strict conditions. It not only restricts the amount of bonds but also regulates how to issue them and use funds raised through bonds.
Under the new version, provincial governments are allowed to issue bonds within a quota set by the State Council, China's cabinet, and approved by the NPC or its standing committee.
Money raised by the bonds can only be used for public services, and not for government operations.
The debts must be included in the provincial budget and supervised by provincial people's congresses.
The central government will assess risk in local debt. If the risk is out of control, it has promised warnings, a fast response and punishment for those responsible.
Finance Minister Lou Jiwei told a press conference here that local governments across the country had about 12-trillion-yuan debts by the end of last June.
"As far as I know, the size of local government debts has not increased notably in the past year and the risks are under control," he said.
The revised law has helped clarify several important principles on how to manage local debts, setting rules and dividing liabilities, he said.
FULLY BUDGETED GOVERNMENT FUNDS
The old Budget Law was adopted when the country was still strongly influenced by planned economy concepts and at an early stage of applying budget management. It had only a very general definition of what the government budget covered, leaving huge room for interpretation by governments.
The revised law, on the other hand, defines the government budget in four parts: the general budget, the budget for government-managed funds, the budget for state-owned assets and the budget for social insurance funds.
For years, China's government budgets only included the general budget, largely made up of tax revenue and spending on public services and government operations.
The revenue gained through transactions in use rights of state land, accounting for a large part of local government revenues, and finances of state-owned enterprises were not budgeted nor supervised by legislatures.
Under the revised law, the revenue from land transactions is covered by the budget for government-managed funds, while the financial situations of state-owned enterprises are supervised through the budget for state-owned assets.
In 2013, the central government for the first time included these four parts in its annual budget submitted at the NPC annual session.
GREATER TRANSPARENCY IN BUDGET
The revised law introduces detailed provisions to ensure the public's access to government budget information.
"The old law did not have any provisions about public supervision. The provisions to improve budget transparency is another highlight of the revised law," said Wang Chaoying, head of the economic laws division with the Commission for Legislative Affairs of the NPC Standing Committee, at Sunday's press conference.
It asks government financial departments to publish their budgets and final account reports within 20 days after they are adopted by the legislature. It also gives the public access to information about local government debts, purchases, budgets and audits.
The new law also clearly regulates how the legislature to examine the government budget report and what to examine. It specifically asks the legislature to examine major expense items and big investments as well as to inspect the development and efficiency of such projects.
Lawmakers also adopted several other important bills at the week-long bi-monthly session, including minor revisions to five laws facilitating the central government's ability to cancel or decentralize administrative approvals and a revision to the workplace safety law.
They adopted three resolutions. One was the decision on the election methods of the chief executive of the Hong Kong Special Administrative Region (HKSAR) and its Legislative Council.
The other two were about setting Sept. 30 as Martyrs' Day and setting up special courts for intellectual property rights in Beijing, Shanghai and Guangzhou.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china revises law to better manage government money china revises law to better manage government money

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china revises law to better manage government money china revises law to better manage government money

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Jordanian journalist happy of her career

GMT 17:37 2017 Thursday ,23 November

Jordanian journalist happy of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday