The Central Committee of the Communist Party of China ("CPC") and the State Council have recently issued the Opinions on Adopting the Performance Management for Budgets in All Aspects (the "Opinions").
The Opinions state that, with the focus on the supply-side structural reform as the core mission, efforts will be made to innovate approaches for budget management, stay result-oriented to a larger extent, stress cost efficiency and tighten liability constraints; it is expected to form an all-round and all-process performance management system for budgets with full coverage, in the next three to five years, to realize the integration of budgets and performance management. Accordingly, the Opinions propose to form an all-round performance management landscape for budgets, create the whole-process performance management chain for budgets, optimize the full-coverage performance management system for budgets, improve the performance management system for budgets, and tighten constraints on the performance management for budgets. In addition, the Opinions require that budgets for revenues and expenditures of all levels of governments will be covered by the performance management regime, and budget outlays shall focus on the support of the country's major development strategies and reforms in major fields, so as to secure and improve people's livelihood; however, it is disallowed to set the excessively-high livelihood standard or expand the coverage of guarantees in private.