By Wang Yingying, Research Team on “Modernization-Oriented Fiscal and Tax Reform”, Research Department of Macro Economy, DRC

Research Report, Special Issue, No.46, 2019 (Total 1674) 2019-7-22

Abstract: This report analyzes budget review and supervision regulations of 17 provinces (autonomous regions and municipalities), 24 supervision reports on budget implementation and budget drafts in 4 provinces (autonomous regions and municipalities) over a six year period and 15 texts of preliminary review reports on draft final account in 3 provinces (municipalities). The results show that since the convention of the 18th CPC National Congress, China’s provinces have made great progress in improving laws on budget review and supervision, enhancing the capacity of supervision organizations and standardizing and fleshing out the supervision and review procedures. But these adjustments are mainly reforms on the technical and operational sides and the provincial people’s congresses’ supervision on government budgets is still not very effective. The budget review and supervision by provincial people’s congresses and their standing committees are just formality and their supervisory role in the planning and implementation stages of the budget cycle remains weak. In order to speed up the transformation of budget supervision by provincial people’s congresses from formality to the substantive change, it is proposed that we should promote real reform of budget supervision through pilot projects on certain places, expand the depth and width of budget supervision with technological methods, and shore up the team of budget review and supervision, so as to improve the implementation capability across the board.

Key words: budget supervision, budget implementation, reform