Budget Law of the People's Republic of China

Budget Law of the People's Republic of China

Order of the President [1994] No. 21

(Adopted at the Second Session of the Eighth National People's Congress on March 22, 1994)

Chapter I General Provisions

Article 1 This Law is formulated in accordance with the Constitution with a view to strengthening the distribution and supervisory function of budget, improving the budget management of the State, intensifying the macroscopic regulation and control of the State, and ensuring the sound development of economy and society.

Article 2 The State shall establish budget at each level of the government, namely, at the five levels: the Central Government; the provinces, autonomous regions and municipalities directly under the Central Government; the cities divided into districts and autonomous prefectures; the counties, autonomous counties, cities not divided into districts, and municipal districts; the townships, nationality townships and towns. Townships, nationality townships and towns where conditions do not permit the establishment of budget, subject to the determination by the people's governments of the respective provinces, autonomous regions or municipalities directly under the Central Government, may temporarily not establish budget.

Article 3 Budget at various levels shall maintain a balance between revenues and expenditures.

Article 4 The budget of the Central Government (hereinafter simplified as the central budget) consists of the budgets of its different departments (including the units directly under them, similarly hereinafter). The central budget includes revenues turned over by the local governments to the Central Government and revenues refunded or subsidies granted by the Central Government to the local governments.

Article 9 The budget approved by the people's congress at the corresponding level shall not be altered without going through the procedures prescribed by law.

Article 10 A budgetary year begins on January 1 and ends on December 31 according to the Gregorian calendar.

Article 11 The budgetary revenues and expenditures take Renminbi yuan as the calculating unit.

Chapter II Functions and Powers for Budget Management

Article 12 The National People's Congress examines the central and local draft budgets and the reports on the implementation of the central and local budgets, approves the central budget and the report on the implementation of the central budget and alters or annuls inappropriate resolutions made by the Standing Committee of the National People's Congress on budget and final accounts.
The Standing Committee of the National People's Congress supervises the implementation of the central and local budgets, examines and approves the adjustment plan for the central budget, examines and approves the final accounts of the Central Government, annuls administrative rules and regulations, decisions, or orders of the State Council on budget or final accounts, which contravene the Constitution or laws, and annuls local regulations or resolutions made by the people's congresses or their standing committees of the provinces, autonomous regions or municipalities directly under the Central Government on budget or final accounts, which contravene the Constitution, laws or administrative rules and regulations.

Article 13 A local people's congress at or above the county level examines the draft general budget at the corresponding level and the report on the implementation of the general budget, approves the budget and the report on its implementation at the corresponding level, alters or annuls inappropriate resolutions made by the standing committee of the people's congress at the corresponding level on budget or final accounts and annuls inappropriate decisions and orders made by the government at the corresponding level on budget or final accounts.
The standing committee of a local people's congress at or above the county level supervises the implementation of the general budget at the corresponding level, examines and approves the adjustment plan for the budget at the corresponding level, examines and approves the final accounts of the government at the corresponding level (hereinafter simplified as the final accounts at the corresponding level), and annuls inappropriate decisions, orders and resolutions made by the government at the corresponding level or by the people's congress at the next lower level and its standing committee on budget or final accounts.
The people's congress of a township, nationality township or town which has established budget examines and approves the budget at the corresponding level and the report on the implementation of the budget at the corresponding level, supervises the implementation of the budget at the corresponding level, examines and approves the adjustment plan for the budget at the corresponding level, examines and approves the final accounts at the corresponding level, and annuls inappropriate decisions and orders made by the government at the corresponding level on budget or final accounts.

Article 14 The State Council compiles the drafts of the central budget and final accounts, makes report to the National People's Congress on the drafts of central and local budgets, submits for the record to the Standing Committee of the National People's Congress reports on the totaled budgets submitted for the record by the governments of provinces, autonomous regions and municipalities directly under the Central Government, organizes the implementation of the central and local budgets, makes decisions to draw on reserve funds of the central budget, works out the adjustment plan for the central budget, supervises the implementation of the budgets of the departments of the Central Government and of the local governments, alters or annuls inappropriate decisions and orders made by the departments of the Central Government or by the local governments on budgets or final accounts, and makes report to the National People's Congress or its Standing Committee on the implementation of the central and local budgets.

Article 15 A local government at or above the county level compiles the draft budget and draft final accounts at the corresponding level, makes report on the draft general budget at the corresponding level to the people's congress at the corresponding level, submits for the record the totalized general budget submitted by the next lower level to the standing committee of the people's congress at the corresponding level for the record, organizes the implementation of the general budget at the corresponding level, makes decisions to draw on reserve funds of the budget at the corresponding level, works out the adjustment plan for the budget at the corresponding level, supervises the budget implementation by the departments at the corresponding level and by the government at the next lower level, alters or annuls inappropriate decisions and orders made by the departments at the corresponding levels and the government at the next lower level on budget or final accounts, and makes report to the people's congress at the corresponding level or its standing committee on the implementation of the general budget at the corresponding level.
The government of a township, nationality township or town compiles the draft budget and draft final accounts at the corresponding levels, makes report to the people's congress at the corresponding level on the draft budget, organizes the implementation of the budget at the corresponding level, makes decisions to draw on reserve funds of the budget at the corresponding level, works out the adjustment plan for the budget at the corresponding level, and makes report to the people's congress at the corresponding level on the implementation of the budget at the corresponding level.

Article 16 The financial department under the State Council compiles the specific draft of the central budget and draft of the final accounts, practically organizes the implementation of the central and local budgets, puts forward proposals for drawing on reserve funds of the central budget, works out the specific adjustment plan for the central budget, and regularly reports to the State Council on the implementation of the central and local budgets.
The financial department of a local government at any level compiles the specific drafts of budget and final accounts at the corresponding level, practically organizes the implementation of the general budget at the corresponding level, puts forward proposals for drawing on reserve funds of the budget at the corresponding level, works out the specific adjustment plan for the budget at the corresponding level, and regularly reports to the government at the corresponding level and the financial department of the government at the next higher level on the implementation of the general budget at the corresponding level.

Article 17 The various departments compile the drafts of their own budgets and final accounts, organize and supervise the budget implementation by their own departments, and regularly report to the financial departments of the governments at the corresponding levels on their budget implementation.

Article 18 The various units compile the drafts of their own budgets and final accounts, turn over budgetary revenues as prescribed by the State, manage the budgetary expenditures, and accept supervision of the relevant departments of the State.

Chapter III Scope of Budgetary Revenues and Expenditures

Article 19 A budget consists of budgetary revenues and budgetary expenditures.
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