CHINA TOPIX

11/24/2024 06:44:34 am

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China's Central Government Cuts Public Expenses

Ministry of Finance

Amid the country's frugality campaign, the Ministry of Finance (MOF) on Friday said China's central government will cut spending on three public consumptions - travels abroad, vehicles and receptions- this year.

The ministry said the central government has earmarked 7.151 billion yuan (around US $1.15 billion) this year on the three items, or 818 million yuan (US $131 million) lesser than last year's budget.

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Based on the 2014 budget, the government will be spending 1.976 billion yuan (US $317 million) for overseas trips, 4.127 billion yuan (US $662 million) for government vehicle purchase and maintenance, and 1.048 billion yuan (US $168m) for official receptions.

A ministry official said the budget cut is implemented as part of the government's austerity rules, which bans public offices and officials from lavish spending, following criticisms from the public. The austerity rule was approved by the Central Committee of the Communist Party of China (CPC).

The CPC Central Committee, in December 2012, released the "eight-point rules" that ordered government officials to practice frugality and clean up their deeds and working styles.

In overseas visits, for instance, the new rules require government officials, including those handling state-owned institutions and enterprises, to clearly specify in details their number of travels, schedules and allowances.

The ministry official said it will be the tasked of the MOF to strictly monitor and control and the budget for the three public consumptions to ensure that spending for travel, vehicles, and reception will continue to decline in the coming years.

The government spending on these three areas has been the center of public debates due to reports that public funds allocated for these have been misuse. Since 2011, the government has been publishing figures of spending on the three items to promote transparency and accountability.

Most provincial governments across the country have also implemented budget cuts on official vehicles, overseas trips and banquets in response to the central government's frugality campaign.

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