Moving Forward On the Path of Global Studies

The Selected Academic Works of Bin Xia

Bin Xia

• Publisher: Page Publishing, Inc.
• Year: 2020
• ISBN:
  9781640820746
• Topic: Sciences sociales
• Subtopic: Dissertations en sociologie

Bin Xia is currently a PhD student in the State University of New York at Buffalo. During his undergraduate level, he served as the Speaker of the Senate at the Student Government Association of University of Wisconsin- Stevens Point (UWSP), becoming the firstinternational student to serve as this position over the history of UWSP. He used to work in a Congressman's office and an international business company respectively.

Overview of China’s Budgetary Management and Administration in the Fiscal Year of 2012-2013118

With rapid development of the contemporary Chinese economy, China’s budgetary management and administration has drawn attention from international community. This paper is focusing on the discussion of China’s budgetary management and administration in the fiscal year of 2012-2013. Meanwhile, how to constantly improve the transparency of China’s budget in 2013 will be also explicated in this paper.

A Crucial Economic Mission for the Entire Nation

--- Brief Introduction of China’s Budget

The budget is a quantified financial plan for an upcoming accounting period, offering a forecast of revenue and expenditure for central and local governments. Each nation’s budget plan is considered one of pivotal documents that government needs to deliberate and implement.

Approved by the 2nd plenary session of the 8th National People’s Congress on March 22nd, 1994, the Budget Law of the People’s Republic of China is a programmatic legislative document guiding the central and local budgetary affairs.119 In accordance with the Budget Law, the annual budget management is a crucial political and economic task for Chinese government to plan and implement. The implementation of 2012 central and local budgets as well as central and local budgets draft for 2013 must be provided by the State Council and approved by the National People’s Congress. Thus, the budget report is one of crucial agendas that delegates to the 1st plenary session of the 12th National People’s Congress of People’s Republic of China must deliberate.120 In China, the full name of annual budget is the report on the implementation of central and local budgets in 2012 and on the draft for central and local budget in 2013.121

The State Council of the People’s Republic of China is the chief executive authority in the People’s Republic of China headed by the Premier. A total of 25 ministries and commissions are composing departments in the State Council since the latest reform on governmental institutions has been approved by the 1st plenary session of the 12th National People’s Congress.122 Each ministry and commission is in charge of a specific sector such as finance, agriculture, national defense, and foreign affairs. The Ministry of Finance is a crucial composing agency in the State Council of the People’s Republic of China dealing with fiscal administration.

The responsibilities of the Ministry of Finance mainly include the following aspects such as formulating and implementing annual budget; preparing the annual budget report for the National People’s Congress; drafting laws and regulations on public fiscal administration and management; reviewing proposals on tax legislation and tax revenue regulations; monitoring the implementation of fiscal and tax policies such as laws and regulations, examining problems with the system and making changes; administrating the central government expenditures for economic development; monitoring the utilization of funds in the aspect of social security; managing expenditures for social management, appropriating the funds for projects on culture, health care, education, sports, as well as for technological innovation; managing national treasury;123 formulating and implementing funding distribution for state-owned enterprises; as well as administrating the central expenditures on governmental procurement and expenses.124

Taken as a whole, the Ministry of Finance of the People’s Republic of China is in charge of making and administrating annual national budget. The current Minister of Finance is Lou Jiwei, who served as the CEO of the China Investment Corporation. A total of four deputy ministers are assisting minister’s day-to-day work.125 The Ministry of Finance has a vigorous leadership. All minister and deputy ministers used to take on sectors related to fiscal management. With regards to their ages, Lou Jiwei and Li Yong are relatively older. Zhu Guangyao and Zhang Shaochun are middle-aged. Wang Bao’an is relatively younger. This unique arrangement indicates that China’s fiscal affairs will be passed on from older generation to younger generation all the time.

A Concerted Effort Is Important

--- Formation Process of China’s Annual Budget Report

The annual budget report usually starts drafting in fall and is approved in the plenary session of the National People’s Congress, which takes approximately 6 months to get all procedures done. The formation process for annual budget report is mainly divided into the following steps.

The Ministry of Finance should draft the report on the implementation of central and local budget in 2012 and central and local budget draft for 2013 by c...