What are the key points for the implementation of the new regulation 11?

category:Finance
 What are the key points for the implementation of the new regulation 11?


Shi Wenwen, Professor of China University of political science and law, told the first finance and economics reporter that the budget law has made provisions in principle for the disclosure of information, but how to disclose and refine what information is not involved. This regulation solves the above problems and further increases the intensity of information disclosure, so as to ensure the publics right to know and the right to supervise.

The regulation requires that the general transfer payment should be made public to regions, and the special transfer payment should be detailed to regions and projects. Government debts, operating funds of government organs, government procurement and funds from special financial accounts shall be disclosed to the public in accordance with relevant regulations. The budget and final accounts of a department shall disclose the basic expenditures and project expenditures, and the expenditures shall be disclosed to the items according to their functions; and the basic expenditures shall be disclosed to the funds according to their economic nature.

Openness and transparency of the budget is conducive to social supervision, accountability to taxpayers, and a constraint on fiscal power. Shi Wenwen said.

Wang Yongjun, a professor at the Central University of Finance and economics, told first finance and economics that the regulation is expected to end a major defect of the departmental budget system for many years: the units to which financial funds of the department budget have gone to become a black box to a large extent. As early as 20 years ago, the world bank suggested that China should make it a high priority to decompose departmental budgets into organizational budgets. For various reasons, this reform has been lagging behind.

Liu Kun, Minister of finance, believes that while the regulations set forth detailed requirements for the disclosure of departmental budgets, the regulations should further implement and promote the budget disclosure of all departments subordinate units, and put forward specific requirements on the time limit and refinement degree of budget and final accounts disclosure of all departments subordinate units, which is conducive to further enhancing the budget transparency of departments and their subordinate units, and vigorously promoting transparent government and clean government Government building.

Key point 2: the local government debt management mechanism is more sound

As of the end of August this year, the balance of local government debt was about 25.1 trillion yuan, which was controlled within the limit approved by the National Peoples Congress, and the overall debt risk was under control.

However, in recent years, the scale of local government debt has risen rapidly, while the growth of local fiscal revenue is weak. Some local governments have committed illegal and illegal borrowing from time to time. In the early stage, the hidden debt growth of local government is too fast, the scale is too large, and the debt ratio in some areas is too high. Therefore, the debt risk of local government should not be underestimated.

In order to further strengthen the local government debt management and prevent debt risk. Regulations on the budget law on government debt management provisions to be refined and clear.

For example, the regulations require the establishment and improvement of local government debt risk assessment index system, the organization of assessment of local government debt risk status, early warning of high debt risk areas, and supervision and resolution of debt risk. Local government debt limit management has also been written into the regulations. The debt balance of provincial and municipal governments shall not exceed the limit approved by the State Council, which is conducive to limiting the excessive growth of local debt.

Liu Kun believes that the above provisions are conducive to the establishment of a standardized local government debt financing mechanism, further strengthen the management of local government debt, strengthen the supervision of all aspects of local government debt, effectively prevent and resolve debt risks, and promote the sustained and healthy development of economic and social undertakings.

Key point 3: further improvement of the transfer payment system involving RMB 8 trillion

In order to promote the equalization of basic public services, the central government transfers most of its financial resources to less developed areas such as the central and western regions through the transfer payment system. By 2020, the amount of transfer payments from the central government to local governments is expected to reach 8.4 trillion yuan.

The regulations refine the contents and concepts of general transfer payment and special transfer payment, establish and improve the regular evaluation and withdrawal mechanism of special transfer payment, and standardize the transfer payment budget.

For example, Article 48 of the Regulations stipulates: except for the transfer payment of special items such as settlement according to the facts, the proportion of the general transfer payment estimated in advance shall not be less than 90%; the proportion of the estimated amount of special transfer payment issued in advance shall not be less than 70%. Among them, the special transfer payment managed and allocated according to the project law shall also specify the projects to be implemented in the next year.

Wang Yongjun said that the significance of this regulation is to enhance the predictability of resource flow in the budget process. For lower level governments and expenditure departments, how much money can be spent in the future is always a question of special concern, because the formulation of government investment plans, medium-term financial regulations, annual budgets and even specific plans are highly dependent on the answer to this question. Considering that transfer payment is an important source of local fiscal revenue, this is especially true.

In addition, the regulations require that the transfer payment budget and fund allocation should be handled by the financial department. Wang Yongjun believes that this regulation aims to promote a centralized management transfer payment system, and make it coordinate with the relatively centralized intergovernmental financial system, thus reversing the long-standing and conflicting governance pattern of centralized financial system and decentralized financial management. However, given the deep-rooted sectoral nature of transfer payments, it is not easy to implement a centralized system. The regulations also further clarify the scope and content of government budget revenue and expenditure, and make the government budget system more clear and complete; further standardize budget implementation and strengthen the whole process management; further deepen budget performance management to improve the efficiency of fund use. The Ministry of Finance recently issued the notice on the implementation of the revised budget law implementation regulations, which requires all localities to conscientiously do a good job in the study and training of the regulations and the publicity of law popularization, do a good job in the organization and implementation, continuously improve the level of budget management, and comprehensively clean up the relevant system documents previously formulated. Source: Wang Xiaowu, editor in charge of Finance and Economics_ NF

In addition, the regulations require that the transfer payment budget and fund allocation should be handled by the financial department. Wang Yongjun believes that this regulation aims to promote a centralized management transfer payment system, and make it coordinate with the relatively centralized intergovernmental financial system, thus reversing the long-standing and conflicting governance pattern of centralized financial system and decentralized financial management. However, given the deep-rooted sectoral nature of transfer payments, it is not easy to implement a centralized system.

The regulations also further clarify the scope and content of government budget revenue and expenditure, and make the government budget system more clear and complete; further standardize budget implementation and strengthen the whole process management; further deepen budget performance management to improve the efficiency of fund use.