Media Talk About China'S Current Budget Bill: Providing Hotbeds For Government Coffers

After ten years of game, the revision of budget law is coming to an end.

On the 25 day of ~31, the tenth session of the twelve NPC Standing Committee will hold fourth deliberations on the draft amendment to the budget law, and the possibility of the four trial is expected to be greater.

During the group deliberation on draft amendments to the budget law, the members of the conference said that the draft four reviewers fully absorbed the previous deliberations, responded to social concerns, and complies with the requirements of comprehensively deepening the reform, which has been relatively mature, and is in favour of voting at this meeting.

Yang Zhiyong, director of the Financial Research Office of the finance and Trade Institute of the Chinese Academy of Social Sciences, told the first financial daily (micro-blog) Daily reporter that in June 30th this year, the Politburo passed the "general plan for deepening the reform of the fiscal and taxation system". At present, China's major reforms should have legal basis.

I believe that the overall spirit of the plan will be reflected in the budget law.

Full calibre budget four books

On the 25 day of the National People's Congress, the draft amendment to draft budget law was published in four draft. In the four review, the "strengthening budget constraint" was added to the legislative purpose, and the definition and management of the full bore budget were more rigorous.

The previous three reviewers established four budget full caliber budget system.

The so-called four budget, that is, the general public budget, the government fund budget, the state capital operation budget and the social insurance fund budget, constitute all the revenue and expenditure of the government.

Although the four reviewers have not yet been released to the public, many experts interviewed by our reporter said that the four reviewers and the three reviewers will be further improved, but there will not be much change.

According to Xinhua news agency, four of the manuscripts clearly stated that all revenues and expenditures of the government should be included in the budget.

In fact, because the existing budget law does not include all the government revenue in the budget, the "extracorporeal circulation" financial funds have been given an opportunity to provide a hotbed of corruption for the existence of "small Treasuries" of many government units.

Although the extra budgetary revenue of the Chinese government has been included in budgetary management since 2011, the four budgets have been included in the budget report, but there are many deficiencies in the compilation and management.

For example, the state-owned capital budgets, at present, the state-owned capital budgets only include some state-owned enterprises' income, and do not cover all state-owned enterprises, such as banks and other state-owned financial institutions.

Therefore, it can not be regarded as a real full bore budget.

Yang Zhiyong told our reporter that once the new budget law is implemented, it means that all income and expenditure should be included in the NPC's deliberation and given its legal significance.

In the future, the four budgets of the government should be audited, submitted for approval, deliberated, implemented and supervised according to law.

At the same time, the budget law amendment will also define the four budget.

According to the three review, the general public budget is the revenue and expenditure budget which is mainly for fiscal revenue, which is used to protect and improve people's livelihood, promote economic and social development, safeguard national security, and maintain the normal functioning of state institutions.

The budget of a government fund is a collection, collection or other way of raising funds to specific objects within a certain period in accordance with the provisions of laws and administrative regulations. It is specially used for the budget of the development of specific public utilities, including the most famous "land sales income".

The budget of state capital operation is the budget of revenue and expenditure for the state capital gains.

The social security fund budget is to raise funds for social insurance contributions, general public budgeting and other means, and it is specially used for the budget of social insurance.

Government accounting system needs matching

The so-called "first level government level finance", the revision of the budget law ultimately affects the budgeting and management of governments at all levels.

The new budget law is coming soon. Are governments at all levels ready?

"From a technical point of view, how to adapt the new budgetary law to the budgeting and management of local governments is a really hard process."

A Finance Bureau official of a municipality directly under the central government told our reporter.

Although all the four budgets have been included in the budget reports, only the general public budgets are relatively mature, and much of the other three budgets are still not fully presented.

Moreover, compared with the public budget, the other three accounts are quite different in the way of audit, usage, capital injection and return balance.

The former Finance Bureau official told our reporter that taking the state-owned capital operation budget as an example, the enterprise is the accounting examination system of the accrual basis system, and the budget is the audit approval system of the payment realization system. The connection between the two needs to be more detailed.

The so-called payment and realization system, similar to the receipt of a sum of money today, whether or not the money is paid in advance or in arrears, should it be received today? As long as today's income is received, even today's expenditure is the same. No matter what is paid this year or next year, it is today's expenditure; the so-called accrual basis means that the money received today depends on whether it should be received today.

The academic circles believe that the pay as you go system is orderly, and the accrual basis system emphasizes efficiency more. It will better reflect the government's behavior. It is the reform direction of the Chinese government accounting system. However, it is difficult for China to turn it into a complete accrual basis at present.

On the other hand, there are differences between the social insurance fund budget and the public budget.

Unlike the simple budget requirements of public budgets, the social insurance fund has a problem of incomplete balance of payments.

For example, when the social security fund appeared to have more income and less expenditure, perhaps it was because of the large number of employed population and the small number of retirees in that year, and the acceleration of aging after five years, the increase of retirees in the region and the rapid increase in expenditure than income, which should give the NPC deputies and the social parties a clear concept.

"This is a medium and long term balance, requiring budget and final accounts to be more elaborate, and should be explained clearly when reporting to the NPC, which sets higher requirements for the government's budget level."

The Finance Bureau official told us this reporter.

Yu Zengbiao, a professor at the school of economics and management of Tsinghua University, told the first financial daily that budgetary revenues and expenditures were primarily a distribution of social wealth, but "how to divide" is a technical problem, which involves budgetary accounting system.

However, under the current accounting system, assets, debts, and some payables and receivables are not reflected in the budget, which makes the so-called "full caliber" greatly discounted.

Yu Zengbiao also believes that the current budgetary accounting system is cash receipts and payments system, that is, the actual cash income and cash expenditure must be included in the budget. It must be replaced by accrual basis.

Yang Zhiyong also told this newspaper that the implementation of the full caliber budget is a lot of work for financial departments at all levels.

But he believes that the budgeting capacity of the local financial sector does not affect the introduction of the new budget law.

"The executive ability of the financial sector is a process of practice and does not affect the advance of the law.

If the four instance is passed, it will be a good time to enter into force in 2015.

Yang Zhiyong told our reporter.

"Finance is the housekeeper of the government, and the housekeeper must listen to his parents."

A staff member of Nanchang Finance Bureau told our reporter.

In his opinion,

Path budget is not a problem at the technical level, mainly depends on the determination of the government.

At present, his area has not yet completed the establishment of the full aperture budget, but has begun to pilot the preparation of the accrual based government debt report.