New rules limit Chinese government spending

BEIJING - The Chinese central government on Monday promulgated a new regulation designed to reduce administrative costs for government and public institutions.

The regulation explicitly prohibits government agencies from purchasing luxury items, goods or commodities above certain standards, as well as defines a frugal working style for the country's civil servants.

For example, it says that government agencies should simplify protocols for public receptions and should not borrow cars from companies.

The regulation will also be implemented by public institutions, including legislative bodies, courts, procuratorates and political parties,according to an explanatory note released along with the regulation.

In addition, the regulation calls for greater supervision over the use of public funds for receptions, vehicles and overseas trips, also known as "the three public consumptions," as they have been deemed by the public as a major source of corruption and waste.

Authorities should integrate spending on these three areas into their budget plans, devise spending plans for the items and publicize their budgets and expenditures on a regular basis, the regulation said.

The government began to disclose information on the three items in 2011 following public calls for greater budget transparency.

In March 2011, the State Council, or China's cabinet, ordered 98 ministries and ministry-level government organs to publicize their budgets and expenditures on the three items. Many provincial governments also voluntarily disclosed their data.

However, the disclosures were not satisfactory, as many found the information released to be too vague, making it impossible to tell exactly how and where the governments were spending their money.

A recent briefing from the Finance Ministry showed that in 2011, the total administrative expenditures of agencies within the central government amounted to about 90 billion yuan ($14 billion), of which over 10 percent was spent on the three items.

Last November, authorities set a new standard for purchases of general service cars, limiting the price per unit to less than 180,000 yuan. However, this restriction did not apply to vehicles designated for high-ranking officials.

The new regulation, scheduled to go into force on October 1, also sets disciplinary penalties for officials who fail to follow the new "frugal" rules, with the possibility of being dismissed from one's post for significant offenses.

The public has voiced concerns over the effectiveness of the regulation's provisions. Chinese news portal Sina.com ran a story about the new regulation shortly after it was announced, attracting hundreds of comments.

Many of the posts urged the government to cut its operational costs and devote the money saved to education or health care.