New efforts try to make the Budget Law more practical to supervise government spending.
In recent years, China's fiscal revenues have shown leapfrog growth. According to the Ministry of Finance (MOF), the country's fiscal revenues grew 24.8 percent year on year in 2011 to hit a record high of 10.37 trillion yuan ($1.63 trillion), of which the central fiscal revenues reached 5.13 trillion yuan ($807 billion), up 20.8 percent from the previous year. Meanwhile, local governments collected 5.24 trillion yuan ($824 billion), a year-on-year increase of 29.1 percent.
However, accompanying the robust fiscal increase is the absence of a corresponding budget system. As more reports concerning huge government expenses appear in the media, calls for reforming the existing budget system have become louder.
"Since 1994, when China implemented a major fiscal reform redefining the distribution of fiscal incomes between central and local governments, the country has become a big power in finance. With changes in the national situation, the public has become more concerned about the openness of the government budget," said Lu Wei, a member of the Standing Committee of the National People's Congress (NPC), China's top legislature, adding that circumstances require revising the current Budget Law.
Read Full Article HERE