Fiscal reforms beginning guns: a comprehensive clean-up within two years of the second treasury

Yesterday, the State Council issued the "Decision on Deepening the Reform of the budget management system" (hereinafter referred to as the "Decision"), requires improved budget management and control, the establishment of multi-year budget balancing mechanism, strive to build a standardized modern budget system, involving budget preparation, execution, public and all aspects of supervision, Xinhua News Agency will be hailed as a new round of fiscal reform, "the beginning of the gun."

"Decision" Aspect lot, some of these measures can be described as unprecedented intensity. Including promoting the final accounts open, public funding for all content "Three" in addition to classified information outside; establishment of assessment accountability mechanisms, the government debt as hard targets into the performance evaluation; comprehensive revamp financial accounts, in addition to the Ministry of Finance to review and State Council for approval shall be reserved exclusively outdoors, and the remaining accounts, such as phasing in two years.

Financial accounts is also known as the "second treasury", "Daily Economic News" has learned that the Ministry of Finance official said that since 2011, the Ministry of Finance for three consecutive years to organize local financial accounts rectification work, the cumulative withdrawal and local fiscal accounts over 74,000, the withdrawal rate was 32.4% households. This means that in the future, or a dozen ten thousand financial accounts to be cleaned up.

New Year's Eve made ​​clear financial planning

Third Plenary Session for the eighth made ​​on the establishment of long-term financial planning, "the decision" clear, "finance department in conjunction with the various departments to prepare three-year rolling financial planning, and strengthen the three-year rolling financial planning of the annual budget constraints. Prepared to promote sector three-year rolling plan to strengthen the project library management, sound project budget audit. various departments involved in planning fiscal policy and financial support to the three-year rolling financial planning phase of convergence. "

China is currently implementing a one year budget, that budget year from January 1 to December 31, but some expenses are multi-year, rolling, annual budget and the impact of fiscal policy on the economy can not be fully demonstrated.

Local financial sources, prepare rolling budgets, and long-term budget or multi-year budget, can make arrangements for spending more long-term and more systematic, can also be used to avoid spending all of a sudden can not afford or arrange supplementary budget in addition to budget.

"Decision" also proposed, according to the economic situation changes and counter-cyclical fiscal policy adjustment needed to establish multi-year budget balancing mechanism. Central budget implementation in the general public, such as occurs surplus, surplus revenue is used to offset a deficit, supplementary budget stabilization fund; such as short-closed, through redeployment budget stabilization fund, or additional deficit spending cuts and by the National People's Congress or its Treasury bonds balance of the balance of the Standing Committee approved limits.

As for the local general public budgets, implementation if there overcharges for the government to resolve the debt or supplementary budget stabilization fund; such as short-closed, through redeployment budget stabilization fund or other budgetary funds, spending cuts to achieve balance. Still not achieved after taking the above measures, such as balance, after the provincial government reported to the National People's Congress or its Standing Committee approved the inclusion of the deficit, and reported to the Ministry of Finance for the record, to be filled in next year's budget.

Tianjin University of Finance and Economics, Professor Lee Wai-kwong told the "Daily Economic News" reporter, said that the "decision" problem many scholars discussed taxation absorb into it, like a budget surplus or short collection problems, and now has to go through Congress to approve implementation, which implements the NPC on the budget oversight functions.

Comprehensive clean financial accounts within two years

"Decision" on the refinement of the government budget and final disclosure made ​​provision, in addition to classified information, the government budget and final refinement of all public expenditure to the functional classification of item-level subjects, special transfer payments by project budget and final accounts by region made ​​public.

For "Three" financial problems, "decision" called for increased "Three" public funding efforts to refine the disclosure, in addition to classified information, all financial resources arrangements "Three" funds should be made ​​public. Publication of final accounts process social concerns, to regulate the rectification, improve the system.

In terms of information disclosure, the problem is more prominent in recent years financial accounts. The so-called financial accounts, refer to the financial sector in order to fulfill the functions of financial management in the banking institutions to open bank settlement accounts for managing specific accounting of funds, where "certain funds" include pension funds, non-tax revenue, education charges. According to Caijing, the central bank said Treasury Secretary Zhang Guisheng, due to the large presence of non-tax revenue collection as well as defects in the way of financial accounts, which greatly limited the scope of treasury oversight, the current number of large national financial accounts, the larger amount, to become in fact the "second treasury."

"Decision" clearly requires standardized management and treasury funds to improve operational efficiency, "a comprehensive revamp financial accounts, will not be allowed around the newly established special financial accounts of expenditure shall be maintained, except for outdoor professionals and report to the State Council approved the Ministry of Finance, Audit, and the remaining professionals households in the two years phasing. "

May this year, the Treasury Department Office of Inspector spend 13 fiscal county commissioner to carry out basic financial guarantee mechanism and resolve the major outstanding issues of local financial subsidies special inspection, one of the county finance department appeared dozens of financial accounts of "spectacle" .

Lee Wai-kwong said that many corruption cases are out in the financial account, the funds involved in some cases to reach a billion dollars. If the state money into the treasury finances, no "second treasury," not through the accounts accounts, you can effectively block the part of the corruption loopholes.

Financial Research Institute of the Central University of Finance Wang Jun Yong told the "Daily Economic News" reporter, said: financial accounts residence, hiding income, which is a loophole current treasury system. "Solution is to adhere to the treasury single account two direct. Two direct link is in the collection of direct treasury single account, payment link directly to suppliers account, this way, by the accounts and hidden income stranded, concealed income of ways to exterminate. "

Treasury officials on deepening the reform of budget management system answering a reporter when asked about the issues mentioned, since 2011, the Ministry of Finance for three consecutive years to organize local financial accounts rectification work, the cumulative merging local financial accounts over 74,000 , the withdrawal rate was 32.4% households. "The next step will be fully straighten out the financial accounts, the country will not be allowed special new spending next fiscal accounts shall be maintained, except for outdoor professionals and report to the State Council approved the Ministry of Finance, Audit, and the remaining accounts in the two years phased out."

Compression ratio of special transfer payments

In addition, the "decision" also proposed to optimize the transfer payment structure. Treasury data show that in 2013 the central place of general transfer payments 2.4 trillion yuan, special transfer payments up to about 1.9 trillion yuan. This year the central government work report compress the central third of the local special transfer payments, this "decision" further proposed "to increase the size and proportion of general transfer payments, and gradually increase the proportion of general transfer payments to more than 60 percent." .

     For special transfer payments "illness", Finance Minister Lou Jiwei had in July this year, said publicly: "too many items of special transfer payments, not easy to form a 'run ministries for money', 'sprinkle black pepper' phenomenon, caused by central departments unduly interfere with local powers through funding arrangements, and even became a breeding ground for corruption. "

Wang Yong-jun on the "Daily Economic News", told reporters that special transfer payments will normally be set specific purposes, there is no independent control over local government, because the project is too small too trivial, out of touch with the real needs of local more serious, resulting in a lot of wasted money.

Lee Wai-kwong said, what accounts for tens of percent is not a problem, because only they would understand where local governments need money, which needs more money. The special transfer can not solve this problem, "Public service is really good from the bottom up, first to meet the needs of basic financial resources."

Reasonable to spend money at the same time, we must strengthen the management of surplus funds carried forward, "carry-over balance of funds to establish mechanisms for regular cleaning of all levels of government budget carryover funds last year, next year should be carried over for expenditure items; unspent funds carried forward for two consecutive years, it shall be as surplus funds management, including the general public budget surplus funds should complement budget stabilization fund. "