Opinions of the Central Committee of the Communist Party of China and the State Council on Adopting the Performance Management for Budgets in All Aspects
Opinions of the Central Committee of the Communist Party of China and the State Council on Adopting the Performance Management for Budgets in All Aspects
Opinions of the Central Committee of the Communist Party of China and the State Council on Adopting the Performance Management for Budgets in All Aspects
September 1, 2018
Adopting the performance management for budgets in all aspects is an intrinsic requirement on advancing the modernization of the state governance system and the state governance capacity, a significant part of deepening the reform of fiscal and tax systems and instituting the modern fiscal system, and also a critical initiative to optimize the allocation of fiscal resources and improve the quality of public services. The following opinions are hereby proposed, with a view to resolving existing prominent issues in respect of the performance management for budgets and forming an all-round, whole-process and full-coverage performance management system for budgets as rapidly as possible.
I. Necessity of Fully Implementing the Performance Management for Budgets
Since the 18th National Congress of the Communist Party of China ("CPC"), all regions and all departments have, under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, earnestly implemented decisions and plans made by the CPC Central Committee and the State Council, sped up the reform in the fiscal and tax systems, constantly improved the budget management system, and continually enhanced the effects of the use of fiscal funds, giving significant support to China's economic and social development. However, it is noteworthy that the current performance management for budgets still faces some prominent issues. For example, the performance concept has not been firmly established, as some regions and departments are stuck on the idea of attaching importance to inputs but neglecting management and paying attention to expenditures but ignoring performance; the width and depth of performance management are insufficient, because the current performance management does not cover all fiscal funds, leaving fiscal funds for some fields inefficient, ineffective, idle, or wasted, and issues of embezzling part of, misappropriating, illegally retaining and privately distributing, falsely reporting or claiming in others' name, fiscal funds, arise from time to time; and the role of incentives and restraints for the performance mechanism is not strong enough, and there is no mechanism to link performance assessment results to the budgeting and policy adjustments.
At present, the Chinese economy has transitioned from a phase of rapid growth to a stage of high-quality development and is now at the stage of breakthroughs in transforming development forms, optimizing the economic structure and shifting to other growth momentum, and building a modern economic system is urgent for expected breakthroughs and also a strategic objective of the country's development. Giving good play to functional roles of the finance requires, pursuant to requirements for fully deepening reforms, the establishment of a modern fiscal system as fast as possible, the formulation of a comprehensive, standard, transparent and scientific budget system with powerful constraints; also, with the focus on the performance management for budgets, as the key point, in effectively resolving prominent issues arising out of performance management, increasing the strengthened power and effects of fiscal funds, improving the quality of public service supplies and enhance the creditability and enforcement capability of the government.
II. General Requirements
1. Guidelines. With the guidance of Xi Jinping Thought on Socialism with Chinese characteristics for a New Era, fully implement the spirit of the 19th National Congress of the Communist Party of China ("CPC") and the Second and Third Plenary Sessions of the 19th CPC Central Committee, remain committed to and strengthen the all-round leadership of the CPC, maintain the general principle of making progress while keeping stability, uphold new development philosophy, closely focus on changes to major contradictions in Chinese society, firmly concentrate on moving forward with the Five-Sphere Integrated Plan and the Four-pronged Comprehensive Strategy for the purpose of achieving high-quality development, stay centered on the main task of the supply-side restructuring reform, innovate means of budget management, put heavier weight on results, place more emphasis on cost efficiency, solidify responsibility constraints, strive to basically build an all-round, whole-process and full-coverage performance management system for budgets in three to five years, realize the integration of budgets and performance management, spare no effort to make fiscal resources allocated more effectively and used more efficiently, reshape the constant layout for budget fund distribution, and raise the level of budget management and implementing results of policies, so as to solidly safeguard economic growth and social development.
2. Basic Principles
-- Persisting in the overall design and the consideration of all factors.
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