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Hu calls for stricter supervision of gov't budget

By WEI TIAN (chinadaily.com.cn)
Updated: 2012-11-13 19:51

China is expected to tighten its management of the government’s budget after President Hu Jintao called for stricter supervision from the National People’s Congress, experts said.

In a report delivered to the ongoing 18th National Congress of the Communist Party of China, which opened on Thursday, President Hu vowed to support and guarantee the supervising powers of the National People’s Congress, or China’s legislature, over the government’s budget and final accounts at all levels.

"Hu’s report has called for supervision at ‘all levels’, which suggests a larger scope of supervision of the government’s budget,” said Hu Yijian, a professor with the Shanghai University of Finance and Economics.

Professor Hu added that there is an increasing proportion of non-tax revenue in the government’s income, such as revenue from sales of land and other State-owned assets.

This part of the government’s income, if not put under the supervising scope of the National People’s Congress, can become a major obstacle in the development of a sound supervision system of the government’s budget, Professor Hu added.

The fiscal income of the Chinese government was 9.06 trillion yuan ($1.46 trillion) in the first three quarters of the year, including non-tax revenue of 1.31 trillion yuan, according to data from the Ministry of Finance.

Separately, Liu Huan, a tax expert and counselor of the State Council, said that the final accounts report, a summary of the execution of the government’s budget, could help analyze the financial details of the previous fiscal year.

"The final accounts report can help lessen random changes in the government’s budget plan, such as lavish spending at the end of the year, which has drawn much criticism from the public,” he said.

 
 
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