3. We need to work hard to ensure that key expenditures are met and
effectively standardize the management of dedicated funds. The central
government and local governments at all levels need to work hard to adjust the
pattern of expenditures strictly in accordance with the Scientific Outlook on
Development and with the requirement to build a harmonious socialist society.
Governments from the highest to lowest level must make a concerted effort to
ensure that all key expenditures identified by the Central Committee and the
State Council are met and fully reflected in the compilation and execution of
their budgets. We need to work hard to institute standardized management of
dedicated funds, making substantial progress as soon as possible. We must
strictly control the addition of new budgetary items earmarked for special
purposes, and any such new item in the central budget not specifically required
by law, regulation or decree of the State Council must be approved by the State
Council. We need to standardize special transfer payments and improve measures
for the handling of such funds to make their handling more open, transparent and
standardized. We need to review special transfer payments to eliminate overlap
and redundancy wherever possible and also ensure that such payments truly
realize their stipulated purpose. We need to improve the compiling of special
transfer payments in the budget, gradually incorporating them into local
budgets, and centralize expenditures from special transfer payments in the
treasury.
4. We need to work hard to ensure public finance is handled in accordance
with the law by tightening financial oversight and management. We need to fully
ensure that public finance is handled in accordance with the law by fully
implementing the Program for Advancing All Aspects of Government Administration
in Accordance with the Law issued by the State Council. We will continue working
diligently on financial and tax legislation such as regulations for implementing
the Law on Corporate Income Tax and the Government Procurement Law, the
Regulations for the Management of the Evaluation Industry, the Regulations for
Budgetary Management of the Management of State Capital in Enterprises and the
Regulations for the Management of Lottery Ticket Proceeds. We need to work hard
to ensure compliance with accounting and auditing norms and general financial
regulations, improve basic work such as accounting, auditing and asset
evaluation and work hard to develop a standardized system for internal control
in enterprises. We will step up the pace of research on reform of government
accounting. We will continue carrying out the program to produce more accounting
personnel and tighten certification and oversight to promote the sound
development of certified public accountants and the asset evaluation industry.
We need to improve the financial oversight mechanism to strengthen compliance
oversight for major fiscal policies, focusing on ensuring the proper use of
government funds affecting the vital interests of the masses. We must
conscientiously accept the oversight of the NPC, auditing and discipline
inspection departments, people's organizations and public opinion. We must
firmly establish the idea of administering public finance in accordance with the
law and for the people to prevent the occurrence of all types of problems that
contravene financial and economic laws and regulations.
5. We need to always be frugal and resolutely combat extravagance and waste.
Although the size of the economy has continued to grow and revenue has rapidly
increased in recent years, we must remain clear-headed, prepare for trouble in
times of peace and become more alert to the possibility of danger. China is the
world's largest developing country and will remain in the primary stage of
socialism for a long time to come. Furthermore, development in the country is
uneven, a large number of people lead very difficult lives, the average standard
of living is not very high and there are still many tasks to be accomplished in
the course of development. Therefore, we can never start spending money hand
over foot just because revenue has been relatively good recently. We must
strictly control increases in expenditures in accordance with the budget, paying
particular attention to increases in regular expenditures. The system of
receptions as part of official functions must be reformed and improved and
management of expenses for business trips and meetings must be tightened.
Persons incurring out-of-town travel and meeting expenses paid by state organs
should be required to use designated venues in accordance with the requirement
to develop a conservation-minded society and the "two imperatives." [It is
imperative to always be modest, prudent and free from arrogance and rashness in
work and it is imperative to continue following a principle of hard struggle and
plain living, Tr.] We need to tighten financial and economic discipline,
strengthen oversight, practice thrift and economy in handling all affairs and
resolutely combat extravagance and waste. Budgetary funds must be used only
where they are most needed and the use of such funds must be made more
standardized, safe and effective.
The year 2007 is an important year for efforts to thoroughly put into
practice the Scientific Outlook on Development and build a harmonious socialist
society. Satisfactorily implementing the budgets and all tasks in public finance
work will be an accomplishment of great significance. Under the leadership of
the Central Committee with Comrade Hu Jintao as General Secretary, we must hold
high the banner of Deng Xiaoping Theory and the important thought of Three
Represents. We must diligently put the Scientific Outlook on Development into
practice, meet all the requirements for economic and financial work set out at
the Fifth Session of the Tenth NPC, conscientiously accept the oversight and
guidance of the NPC for financial work and carefully listen to the comments and
suggestions of the CPPCC National Committee. We must shore up our confidence,
act in concert, strive for progress, work effectively and make greater
contributions to building a moderately prosperous society in all respects and
accelerating the building of a harmonious socialist society. Finally, we must
score even more achievements to welcome the successful convening of the
Seventeenth National Congress of the Party!
