On August 3, Premier Li Keqiang signed Order No. 729 of the State Council, announcing the revised Regulations on the Implementation of the Budget Law of the People's Republic of China (hereinafter referred to as the Regulations), which will come into force on October 1, 2020. Regulations to xi jinping, the new era of socialism with Chinese characteristics as a guide, fully implement the party's in the 19th and the 19th session of 2, 3, plenary meeting spirit, adhere to and implement the revised budget law requirements, and promote the financial reform in recent years, cohesion, to further improve the budget management system and mechanism, in line with the current "proactive fiscal policy to be more positive for" requirement, is advantageous to the full to do a good job of "six stability", the full implementation of "six protect" task, is one of the important legislative budget legal system construction in China, It provides a legal guarantee for speeding up the establishment of a modern fiscal system that is compatible with the modernization of China's governance system and governance capacity, and giving better play to the role of finance as the foundation and an important pillar of national governance.

1. In accordance with the decisions and plans of the CPC Central Committee and the State Council, we deepened fiscal reform and budget management, laying a solid foundation for the revision of the Regulations

(1) Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and a series of major decisions and plans made by the CPC Central Committee have provided ideological guidance and fundamental compliance for the amendment of the Regulations.

Since the 18th National Congress of the CPC, the CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to fiscal work and made a series of major decisions and plans on deepening fiscal reform and establishing a modern fiscal system. The third plenary session of the 18 decision points out, "finance is the foundation of governance and the important pillar, the fiscal and taxation system of science is to optimize the allocation of resources, to safeguard the unity of the market, and promote social justice and the realization of the system of national security guarantee", and improve the budget management system, perfect the tax system, and establish the governance and expenditure responsibility system that adapt to specific deployment. The report to the 19th National Congress of the COMMUNIST Party of China pointed out that "we should speed up the establishment of a modern fiscal system and establish a fiscal relationship between the central and local governments in which powers and responsibilities are clearly defined, financial resources are coordinated, and regions are balanced. We will establish a comprehensive, standardized, transparent, standardized, scientific budget system with strong constraints, and fully implement performance management. Decided to further pointed out that the fourth plenary session of the party's 19 "standard and scientific, standardized transparent, constraints, and strong budget system", "optimization of powers between the government and financial division, the establishment of clear responsibilities, resources coordination, regional balance of the central and local financial relationship, form a stable government entities at all levels of the governance and expenditure responsibility and adapt to the financial system". The CPC Central Committee and the State Council on deepening the reform of fiscal made a series of major policy decisions, full implementation of the budget performance management, prevent dissolve the recessive debt risk of local government issued a series of important documents, such as clear to speed up to build all-round, whole process, the whole budget performance management system, to strictly control borrowing, resolutely curb the recessive debt increment, properly resolve the recessive debt stock.

Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Xi Jinping New Philosophy, New thinking and new strategy for comprehensively governing the country by law, consistent goals and major plans, have provided ideological guidance and fundamental guidance for our efforts to revise the Regulations.

(2) The deepening of fiscal reform and budget management has provided a practical basis and realistic conditions for revising the Regulations.

Since the revised budget law enforcement, in accordance with the legal requirements and the CPC Central Committee and the State Council decision deployment, our country launched a series of deepening the reform of fiscal and standardize new institutional mechanisms of budget management, financial management more standardized transparent, financial system more scientific and reasonable, improve the people's feeling and satisfaction. First, we vigorously promoted reform of the budget management system. We will improve the government budget system, and the budgets for general public budgets, budgets for government-managed funds, budgets for state capital operations, and budgets for social security funds are interconnected. We actively promoted the disclosure of budgets and final accounts, and governments and government departments at all levels have basically made their budgets and final accounts public as required. We will improve the way annual budgets are controlled, and the focus of budget review will be expanded from the balanced state and the size of the deficit to spending budgets and policies. We will establish a mechanism for balancing budgets across different years, implement medium-term fiscal planning and management, and make public finance more capable of allocating public resources in a scientific way. We will tighten the rules on living a tight life and strictly control general expenditures. Second, we will establish a standardized financing mechanism for local governments to borrow money. In accordance with the law, local governments were given appropriate authority to raise debt, and their debts were subject to limit and budget control. We will establish an accountability mechanism that holds people accountable throughout their lives and checks their liabilities backwards to effectively prevent and defuse financial risks. Third, reform and improve the transfer payment system. We will adjust and optimize the classification of transfer payments, clarify the functional orientation of all transfer payments, strengthen the management of transfer payments, and better align them with the reform of dividing fiscal authority and spending responsibility. Fourth, we will comprehensively implement performance-based budget management. We will establish an all-round, whole-process and all-inclusive budget performance management system to promote government effectiveness. Fifth, we will strengthen management of budget implementation. Government revenue and expenditure shall be collected and paid centrally by the Treasury. We will work hard to clean up and standardize special financial accounts and establish a long-term mechanism for managing special financial accounts. The central Treasury cash management operation has been normalized, and the local Treasury cash management has been carried out steadily. Sixth, new progress has been made in compiling final accounts and comprehensive government financial reports on accrual basis. The system of general and departmental final accounts has been improved and enriched. Steady progress was made in reforming the accrual basis system for comprehensive government financial reporting, and the government accounting standards system continued to improve.

The further advancement of fiscal reform and development and the detailed implementation of reform measures have provided rich practical experience and necessary practical conditions for the revision of the regulations.

2. The budget Law forms a new standard for budget management, which provides a detailed and practical basis for the amendment of the regulations

The original regulations, issued and implemented in 1995, played a very important role in further deepening the tax distribution reform, standardizing budget management and enhancing the scientific nature of budget preparation and implementation. With the revision of the budget Law in 2014, major breakthroughs have been made in many aspects of budget management. The original regulations are no longer compatible with the revised budget law, so it is in urgent need of revision. In revising the regulations, we adhered to the provisions of the Supreme Law, conscientiously implemented the decisions and arrangements of the CPC Central Committee and the State Council, and refined the relevant provisions of the Budget Law. The main contents of the modification include the following seven aspects:

(1) The scope and content of government budget revenues and expenditures will be further clarified to make the government budget system clearer and more complete. The regulations, in accordance with the authorization of the Budget Law, stipulate the scope of revenues and expenditures and the contents of the budgets for general public budgets, budgets for government-managed funds, budgets for state capital operations and budgets for social insurance funds. To explain the concept of income in the general public budget revenue in the budget law. Of governmental fund budget, the state-owned capital management budget, budget social insurance fund collection and payment scope make regulation, cohesion of the four budget rules, the general public budget can according to need and money appropriately allocate funds added social insurance fund budget, the state-owned capital operation budget can bring up to the general public budget money. The regulations also make detailed provisions on the specific contents of the four budgets. The above provisions are conducive to further improving the standardization and scientificity of government budget formulation and enhancing the effective linkage between the respective budgets within the government budget system.

(2) To further standardize department budget management and improve the integrity of budget preparation. Regulations, strictly implement the budget law established by the government of all income and expenditure shall be incorporated in the basic idea of the whole caliber of budget management, budget rules should reflect the general public budget, government departments budget funds budget and state-owned capital management budget to all departments and its subordinate units of the budget, the funding balance of payments of departmental budgets in the specification at the same time, further old-age "one department budget" management requirements, to further enhance the integrity of the department budget planning. The regulations also stipulate that the budgetary expenditures of a department include basic expenditures and project expenditures, and the budgetary appropriation income and corresponding expenditures of each department and its subordinate units shall be separately reflected in the departmental budget.

(3) We will further strengthen local government debt management and guard against debt risks. The regulations specify and clarify the budget law's provisions on government debt management. It calls for the establishment and improvement of an index system for assessing local government debt risks, organizing assessments of local government debt risks, providing early warning to regions with high debt risks, and supervising the resolution of debt risks. The State Council may extend loans to the governments of provinces, autonomous regions and municipalities directly under the Central Government for loans made by foreign governments and international economic organizations. Where the government of a province, autonomous region or municipality directly under the Central Government bears the direct responsibility for repayment, it shall be brought into the budget administration at the corresponding level. The governments of provinces, autonomous regions and municipalities directly under the Central Government may re-lend to the governments at lower levels loans made by foreign governments and international economic organizations on loan from the State Council. The above provisions are conducive to the establishment of a standardized financing mechanism for local governments to raise debt, further strengthening the management of local government debt, strengthening the supervision of all parties over local government debt, effectively preventing and defusing debt risks, and promoting the sustained and sound development of economic and social programs.

(4) Further standardize the budget implementation and strengthen the whole process management. In accordance with the relevant provisions of the Budget Law and the needs of budget management, the regulations have revised and improved the main duties and responsibilities of financial departments, departments and units in budget implementation, further clarified the division of duties and responsibilities of financial departments and budget units, and strengthened the principal position of departments and units in budget implementation. We will enrich the relevant provisions on budgetary revenues and budgetary allocations of organizations, and implement the budget Law's stipulation that the state should implement a system of centralized Treasury collection and payment. About specific special funds for refinement budget law can be in accordance with the provisions of the State Council set up fiscal revenue, the scope of the regulations has been clear about the specific special funds to open, change the fiscal revenue and withdraw fiscal revenue management procedures, required fiscal revenue funds managed by the financial department of the government at the corresponding level, and integrated in budget implementation and final accounts and government financial report reflects alone, these rules to consolidate the achievements of fiscal revenue clearing, fiscal revenue management into the standardization, the orbit.

(5) We will further improve the transfer payment system and standardize fiscal relations between governments. The regulations further detailed the budget law's contents on the regular evaluation and withdrawal mechanism of special transfer payments, and further enriched and improved the specific contents of transfer payment management. Strictly regulate transfer payment funds disbursed, strengthen transfer payment funds under centralized management, clear fiscal transfer payment budget issued and appropriated funds shall be handled by the financial department, other departments and units shall not be issued to lower government departments and units transfer payment total budget or transfer payment funds, improve transfer payment management of normative and effective. At the same time, the regulations stipulate that governments at or above the county level shall, in accordance with a certain proportion of the expected implementation of this year's transfer payments, transfer payments for the next year in advance to the government at the next lower level, and specify the proportion of general transfer payments and special transfer payments in advance respectively.

(6) Further deepen budget performance management and improve the efficiency of capital use. Act in compliance with the principles of budget law about budgets at various levels shall be particular about performance, the performance appraisal of expenditure of budget law about performance management by objectives, results and carry out the performance evaluation rules, on the basis of further defined the concept of performance evaluation, regulation performance evaluation results as the basis of improved after management and prepare the annual budget, financial sector to organize and guide the budget performance monitoring, performance evaluation, each department each unit to implement performance monitoring, regularly to the financial department of the government at the corresponding level to submit the budget performance evaluation report. The provisions of the regulations on the budget performance management, and further constructs the comprehensive budget performance management pattern, set up the budget establishment, execution, and final accounts of the whole process of performance management chain, is conducive to further savings, deal with the current financial revenue and expenditure gap, make financial fund allocation more focused, mass transfer efficiency, to improve the service efficiency of funds.

(7) We will make budget information more public and enhance budget transparency. Adhering to the basic concept of budget disclosure in the Budget Law, the Regulations adhere to the principle of openness as the norm and non-disclosure as the exception. The disclosure of general transfer payments to the public should be detailed to regions, and the disclosure of special transfer payments to the public 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 budgets and final accounts of departments shall disclose basic expenditures and project expenditures, and expenditures shall be disclosed according to their functions. Classified according to its economic nature, basic expenditure should be disclosed to the public. Regulations for public sector budget request refinement at the same time, further implement and promote each department subordinate unit budget public work, open to all departments subordinate unit budget time, degree of refinement also puts forward the specific requirements, to further enhance the department and its subordinate unit budget transparency, vigorously promote transparent government, honest government construction.

3. Implement the regulations with a high sense of responsibility and accelerate the establishment of a modern financial system

After the promulgation of the Regulations, financial departments and budget units at all levels should do a good job in implementing the regulations with a high sense of responsibility. To strengthen the publicity and training of the regulations, the majority of financial and financial workers should strengthen the understanding of the regulations, in the actual work of strict implementation of the budget law and regulations of the provisions of the regulations, the real implementation of the regulations into the financial management of all relevant areas and links. At the same time, we will accelerate the development of relevant supporting systems, vigorously promote fiscal reform, and accelerate the establishment of a modern fiscal system.

(1) Pay great attention to the publicity and training of regulations. General Secretary Xi Jinping has stressed the need to carry forward the socialist spirit of the rule of law and establish the authority of the rule of law through in-depth publicity and education. We should take the release of the Regulations as an opportunity to further strengthen the publicity and training of the budget legal system, so as to fully understand and accurately grasp the legislative spirit, revision principles and specific provisions of the regulations. Financial departments at all levels should, in accordance with the requirements of the accountability system of law enforcement and law enforcement, conduct their own training and study, and at the same time make use of "online and offline" to organize financial personnel of budget units for in-depth study, so as to learn and understand. The publicity should be intensified to enhance the awareness of all sectors of society to the content of the regulations and further enhance the awareness of the budget rule of law in the whole society.

(2) We worked hard to implement the regulations. General Secretary Xi Jinping has stressed that the vitality of law lies in its implementation and the authority of law lies in its implementation. The regulations make clear provisions on budget preparation, implementation, final accounts and legal responsibilities, and are a system that must be strictly implemented by financial departments and budget units at all levels in specific budgetary and financial management. We must act in strict accordance with the law, organize fiscal revenues, arrange fiscal expenditures in accordance with the law, make public budgets and final accounts in accordance with the law, and accept supervision in accordance with the law. We must prioritize strict financial and economic discipline over all aspects of our fiscal and financial work, and ensure that there are laws to follow, that they are observed, that law enforcement is strictly enforced, and that violations of the law are prosecuted.

(3) Efforts should be made to build supporting systems for the regulations. The decision of the fourth Plenary Session of the 19th CPC Central Committee pointed out that a complete system of laws and norms should be formed at a faster pace. The promulgation of the regulations indicates that China's budget management laws and administrative regulations have been improved with the development of The Times. In order to form a complete system of budget laws and regulations, the budget law and regulations should be gradually refined into specific operation methods and a systematic supporting system should be formed. On the one hand, we should actively study and formulate and improve regulations and rules on fiscal transfer payments, government debt management, budget performance management, Treasury management, and fiscal supervision. On the other hand, the current budget management rules and regulations should be sorted out in a timely manner, the provisions inconsistent with the regulations should be revised, the specific operating provisions and requirements of the relevant regulations should be detailed, and relevant systems and measures should be issued in a timely manner to ensure that all the provisions of the regulations are implemented.

(4) We will focus on fiscal reform. The decision of the fourth Plenary Session of the 19th CPC Central Committee put forward a series of requirements for deepening the reform of the fiscal and taxation systems, and we must pay close attention to them. In line with the implementation of the regulations, we will continue to deepen the reform of the fiscal system, the budget management system and other systems, and continue to deepen fiscal reform. We should adhere to the principle of integrating the long-term with the short-term, and making progress as a whole. We should strengthen system integration and coordination and efficiency, refine reform plans and measures, make clear timetables and road maps, accelerate the establishment of a modern fiscal system, and make new and greater contribution to the modernization of China's governance system and capacity.

Source: Ministry of Finance, PRC