Implementing Regulations of the Budget Law of the People's Republic of China (Revised in 2020)
Implementing Regulations of the Budget Law of the People's Republic of China (Revised in 2020)
Implementing Regulations of the Budget Law of the People's Republic of China (Revised in 2020)
Order of the State Council of the People's Republic of China No.729
August 3, 2020
The revised Implementing Regulations of the Budget Law of the People's Republic of China are hereby promulgated for implementation from October 1, 2020.
Li Keqiang, Premier
Implementing Regulations of the Budget Law of the People's Republic of China (Revised in 2020)
(Issued by Order of the State Council of the People's Republic of China No.186 on November 22, 1995 and revised in accordance with Order of the State Council of the People's Republic of China No.729 on August 3, 2020)
Chapter I General Provisions
Article 1 The present Regulations are enacted in accordance with the Budget Law of the People's Republic of China (hereinafter referred to as the "Budget Law").
Article 2 The detached agencies of local governments at the county level and above shall carry out budget management according to the authorization of the governments at the corresponding level; however, their budgets are not at separate levels from those of the said governments, with their revenues and expenditures included in the budget at the same level.
Article 3 The social insurance fund budget shall realize sustainable operation on the basis of actuarial balance. The general public budget may appropriately arrange funds to supplement the social insurance fund budget according to needs and financial resources.
Article 4 The "departments as mentioned in Paragraph 2 of Article 6 of the Budget Law" shall refer to the State organs, military troops, political party organizations, public institutions, social organizations and other entities that have a direct budgetary payment and appropriation relationship with the department of public finance of the government at the said level.
Article 5 Budgets of the departments shall reflect all budgetary funds allocated to the departments and entities affiliated thereto by the general public budget, the government-managed fund budget, and the state-owned capital management budget.
The budgetary revenues of the departments shall cover revenues from budgetary appropriations and other revenues allocated to the departments and entities affiliated thereto by the departments of public finance at the corresponding level. The budgetary expenditures of the departments shall be the expenditures corresponding to the budgetary revenues thereof, including basic expenditures and item expenditures.
The "basic expenditures" as mentioned in Paragraph 2 of this Article shall refer to the expenditures incurred by the departments and entities to ensure their normal operation and completion of daily tasks, including personnel expenses and public expenses; the "item expenditures" shall refer to the expenditures incurred by departments and entities to complete their specific tasks and achieve the development goals.
The revenues from budgetary appropriations of the departments and entities affiliated thereto at the corresponding level and corresponding expenditures thereof shall be separately reflected in the departmental budget.
Specific measures for the preparation and execution of departmental budgets shall be formulated by the department of public finance of the government at the said level.
Article 6 The disclosure of general transfer payment to the public shall be broken down by region. Special transfer payments shall be broken down by region and project.
Government debts, government agency operating expenses, government procurement, and funds of special financial accounts shall be disclosed to the public in accordance with relevant regulations.
Basic expenditures and item expenditures shall be disclosed in the departmental budgets and final accounts. The disclosure of departmental budgets and final accounts expenditures shall be broken down by item according to the functional classification; and the disclosure of basic expenditures shall be broken down by each amount according to the classification of economic nature.
The budgets, final accounts and statements of entities affiliated to the departments shall be disclosed to the public by such entities within 20 days after the reply is obtained from the departments. Basic expenditures and item expenditures shall be disclosed in budgets and final accounts of such entities. The disclosure of budgets and final accounts expenditures of such entities shall be broken down by item according to the functional classification; and the disclosure of basic expenditures shall be broken down by each amount according to the classification of economic nature.
Article 7 The "system of tax division between the central and local governments" as mentioned in Article 15 of the Budget Law shall refer to the financial management system in which the scope of expenditures of the central and local governments is determined on the basis of the division of responsibility between the said governments, and the budgetary revenues of the central and local governments are classified on the basis of tax types.
The concrete contents and implementation measures of the system of tax division between the central and local governments shall be in conformity with the relevant provisions of the State Council.
Article 8 A local government at the county level or above shall determine the financial management system with respect to the governments at lower levels in accordance with the principle of the system of tax division between the central and local governments and the relevant provisions of governments at higher levels.
Article 9 The "general transfer payment" as mentioned in Paragraph 2 of Article 16 of the Budget Law includes:
1. balanced transfer payment;
2. financial subsidies for old revolutionary base areas, ethnic minority areas, border areas, and poverty-stricken areas; and
3. other general transfer payment.
Article 10 The "special transfer payment" as mentioned in Paragraph 3 of Article 16 of the Budget Law shall refer to the fact that governments at higher levels grant the budgetary funds to governments at lower levels that will arrange and use such budgetary funds in accordance with the purpose specified by the former, in order to achieve specific economic and social development goals.
The departments of public finance of governments at the county level and above shall, in conjunction with relevant departments, establish a sound mechanism for the regular evaluation and withdrawal of special transfer payments. The assessed special transfer payment shall be handled respectively in light of the following circumstances:
1. where it is necessary to continue to implement the special transfer payment in compliance with laws, administrative regulations and the provisions of the State Council, the special transfer payment may continue to be implemented;
2. where there are changes in established relevant requirements, or the actual performance is far from the target, or the management is not perfect, the special transfer payment shall be adjusted; or
3. where the basis for establishment is invalid or abolished, the special transfer payment shall be canceled.
Article 11 The budgetary revenues and expenditures take Renminbi yuan as the calculating unit. Where the budgetary revenues and expenditures are collected and paid in currencies other than Renminbi, such currencies shall be converted to Renminbi.
Chapter II Scope of Budgetary Revenues and Expenditures
Article 12 The "revenue from administrative charges" as mentioned in Paragraph 1 of Article 27 of the Budget Law shall refer to the revenue from the fees collected, in accordance with prescribed standards, from the specific target by State organs and public institutions, in accordance with laws and regulations, and approved according to the procedures stipulated by the State Council, during the execution of social public administration, and the period of providing specific public service for citizens, legal persons and other organizations.
The "revenue from paid use of state-owned resources (assets)" as mentioned in Paragraph 1 of Article 27 of the Budget Law shall refer to the revenue from the paid use of state-owned resources such as mineral resources, watercourses, sea areas, uninhabited islands, and forests and grasslands owned by the State by law, and the revenue from state-owned assets included in the management of general public budget as required.
The "transfer revenue" as mentioned in Paragraph 1 of Article 27 of the Budget Law shall refer to the revenue from tax returns and transfer payment by governments at higher levels, the revenue paid in by governments at lower levels, transfer-in funds, and the revenue from the non-reimbursable assistance from non-affiliated governments included in the transfer revenue in accordance with the provisions of the Ministry of Finance.
Article 13 Transfer expenditure includes expenditure caused by paying tax revenues to governments at higher levels, and tax refunds and transfer payments to governments at lower levels, transfer-out funds, and the expenditure from the non-reimbursable assistance from non-affiliated governments included in the transfer expenditure in accordance with the provisions of the Ministry of Finance.
Article 14 The revenues of the government-managed fund budget shall include various item revenues and transfer revenues of government funds.
The expenditures of the government-managed fund budget shall include various item expenditures and transfer expenditures corresponding to revenues of the government-managed fund budget.
Article 15 The revenues of the state-owned capital management budget shall include profit revenues, which are paid to the State by wholly state-owned enterprises and wholly state-owned companies, and which shall be included in the state-owned capital management budget in accordance with laws, administrative regulations and the provisions of the State Council, revenues from dividends and bonuses obtained from companies controlled or participated in by state-owned capital, revenues from the transfer of state-owned property rights, liquidation revenues and other revenues.
The expenditures of the state-owned capital management budget shall include capital expenditures, costs and expenditures, and transfer expenditures including the funds transferred from the general public budget, and other expenditures.
Article 16 The revenues of the social insurance fund budget shall include revenues from various social insurance premiums, interest revenues, investment revenues, revenues from subsidies for the general public budget, collective subsidy revenues, subsidy revenues from governments at higher levels, revenues paid in by governments at lower levels, and other revenues.
The expenditures of the social insurance fund budget shall include various social insurance benefit expenditures, transfer expenditures, expenditures caused by paying tax revenues to governments at higher levels, and other expenditures.
Article 17 The classification of revenue and expenditure items, and the specific measures for paying in, refunding, or transfer payment between the local budgets at two levels next to each other in hierarchical subordination shall be determined by the local government at the higher level, and shall be submitted to the standing committee of the people's congress at the corresponding level for the record.
Article 18 The classification of revenue and expenditure items, and the specific measures for paying in, or subsidizing between the local social insurance fund budgets at two levels next to each other in hierarchical subordination shall be determined by the local government at a higher level according to the levels of overall planning, and shall be submitted to the standing committee of the people's congress at the corresponding level for the record.
Chapter III Budget Making
Article 19 The "draft budgets" as mentioned in Article 31 of the Budget Law shall refer to the budgets that are made by the governments, departments, and entities at various levels and that have not been examined and approved according to statutory procedures.
Article 20 The "performance evaluation" as mentioned in Paragraph 1 of Article 32 of the Budget Law shall refer to the systematic and objective evaluation of the investment, utilization, output and effect of budgetary funds based on standardized procedures and according to the set performance targets.
The results of performance evaluation shall, according to the provisions, be used as the basis for improving management and preparing future annual budgets.
Article 21 The "standards for budgetary expenditures" as mentioned in Paragraph 3 of Article 32 of the Budget Law refer to standards for making expenditure budgets that reasonably classify budget items and stipulates them separately, including basic expenditure standards and item expenditure standards.
The departments of public finance of local governments at different levels shall, based on the standards for budgetary expenditures formulated by the Ministry of Finance and in combination with the economic and social development level and financial situation of their respective administrative areas, formulate the standards for the budgetary expenditures of their respective administrative areas or at the corresponding level.
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Order of the State Council of the People's Republic of China No.729
August 3, 2020
The revised Implementing Regulations of the Budget Law of the People's Republic of China are hereby promulgated for implementation from October 1, 2020.
Li Keqiang, Premier
Implementing Regulations of the Budget Law of the People's Republic of China (Revised in 2020)
(Issued by Order of the State Council of the People's Republic of China No.186 on November 22, 1995 and revised in accordance with Order of the State Council of the People's Republic of China No.729 on August 3, 2020)
Chapter I General Provisions
Article 1 The present Regulations are enacted in accordance with the Budget Law of the People's Republic of China (hereinafter referred to as the "Budget Law").
Article 2 The detached agencies of local governments at the county level and above shall carry out budget management according to the authorization of the governments at the corresponding level; however, their budgets are not at separate levels from those of the said governments, with their revenues and expenditures included in the budget at the same level.
Article 3 The social insurance fund budget shall realize sustainable operation on the basis of actuarial balance. The general public budget may appropriately arrange funds to supplement the social insurance fund budget according to needs and financial resources.
Article 4 The "departments as mentioned in Paragraph 2 of Article 6 of the Budget Law" shall refer to the State organs, military troops, political party organizations, public institutions, social organizations and other entities that have a direct budgetary payment and appropriation relationship with the department of public finance of the government at the said level.
Article 5 Budgets of the departments shall reflect all budgetary funds allocated to the departments and entities affiliated thereto by the general public budget, the government-managed fund budget, and the state-owned capital management budget.
The budgetary revenues of the departments shall cover revenues from budgetary appropriations and other revenues allocated to the departments and entities affiliated thereto by the departments of public finance at the corresponding level. The budgetary expenditures of the departments shall be the expenditures corresponding to the budgetary revenues thereof, including basic expenditures and item expenditures.
The "basic expenditures" as mentioned in Paragraph 2 of this Article shall refer to the expenditures incurred by the departments and entities to ensure their normal operation and completion of daily tasks, including personnel expenses and public expenses; the "item expenditures" shall refer to the expenditures incurred by departments and entities to complete their specific tasks and achieve the development goals.
The revenues from budgetary appropriations of the departments and entities affiliated thereto at the corresponding level and corresponding expenditures thereof shall be separately reflected in the departmental budget.
Specific measures for the preparation and execution of departmental budgets shall be formulated by the department of public finance of the government at the said level.
Article 6 The disclosure of general transfer payment to the public shall be broken down by region. Special transfer payments shall be broken down by region and project.
Government debts, government agency operating expenses, government procurement, and funds of special financial accounts shall be disclosed to the public in accordance with relevant regulations.
Basic expenditures and item expenditures shall be disclosed in the departmental budgets and final accounts. The disclosure of departmental budgets and final accounts expenditures shall be broken down by item according to the functional classification; and the disclosure of basic expenditures shall be broken down by each amount according to the classification of economic nature.
The budgets, final accounts and statements of entities affiliated to the departments shall be disclosed to the public by such entities within 20 days after the reply is obtained from the departments. Basic expenditures and item expenditures shall be disclosed in budgets and final accounts of such entities. The disclosure of budgets and final accounts expenditures of such entities shall be broken down by item according to the functional classification; and the disclosure of basic expenditures shall be broken down by each amount according to the classification of economic nature.
Article 7 The "system of tax division between the central and local governments" as mentioned in Article 15 of the Budget Law shall refer to the financial management system in which the scope of expenditures of the central and local governments is determined on the basis of the division of responsibility between the said governments, and the budgetary revenues of the central and local governments are classified on the basis of tax types.
The concrete contents and implementation measures of the system of tax division between the central and local governments shall be in conformity with the relevant provisions of the State Council.
Article 8 A local government at the county level or above shall determine the financial management system with respect to the governments at lower levels in accordance with the principle of the system of tax division between the central and local governments and the relevant provisions of governments at higher levels.
Article 9 The "general transfer payment" as mentioned in Paragraph 2 of Article 16 of the Budget Law includes:
1. balanced transfer payment;
2. financial subsidies for old revolutionary base areas, ethnic minority areas, border areas, and poverty-stricken areas; and
3. other general transfer payment.
Article 10 The "special transfer payment" as mentioned in Paragraph 3 of Article 16 of the Budget Law shall refer to the fact that governments at higher levels grant the budgetary funds to governments at lower levels that will arrange and use such budgetary funds in accordance with the purpose specified by the former, in order to achieve specific economic and social development goals.
The departments of public finance of governments at the county level and above shall, in conjunction with relevant departments, establish a sound mechanism for the regular evaluation and withdrawal of special transfer payments. The assessed special transfer payment shall be handled respectively in light of the following circumstances:
1. where it is necessary to continue to implement the special transfer payment in compliance with laws, administrative regulations and the provisions of the State Council, the special transfer payment may continue to be implemented;
2. where there are changes in established relevant requirements, or the actual performance is far from the target, or the management is not perfect, the special transfer payment shall be adjusted; or
3. where the basis for establishment is invalid or abolished, the special transfer payment shall be canceled.
Article 11 The budgetary revenues and expenditures take Renminbi yuan as the calculating unit. Where the budgetary revenues and expenditures are collected and paid in currencies other than Renminbi, such currencies shall be converted to Renminbi.
Chapter II Scope of Budgetary Revenues and Expenditures
Article 12 The "revenue from administrative charges" as mentioned in Paragraph 1 of Article 27 of the Budget Law shall refer to the revenue from the fees collected, in accordance with prescribed standards, from the specific target by State organs and public institutions, in accordance with laws and regulations, and approved according to the procedures stipulated by the State Council, during the execution of social public administration, and the period of providing specific public service for citizens, legal persons and other organizations.
The "revenue from paid use of state-owned resources (assets)" as mentioned in Paragraph 1 of Article 27 of the Budget Law shall refer to the revenue from the paid use of state-owned resources such as mineral resources, watercourses, sea areas, uninhabited islands, and forests and grasslands owned by the State by law, and the revenue from state-owned assets included in the management of general public budget as required.
The "transfer revenue" as mentioned in Paragraph 1 of Article 27 of the Budget Law shall refer to the revenue from tax returns and transfer payment by governments at higher levels, the revenue paid in by governments at lower levels, transfer-in funds, and the revenue from the non-reimbursable assistance from non-affiliated governments included in the transfer revenue in accordance with the provisions of the Ministry of Finance.
Article 13 Transfer expenditure includes expenditure caused by paying tax revenues to governments at higher levels, and tax refunds and transfer payments to governments at lower levels, transfer-out funds, and the expenditure from the non-reimbursable assistance from non-affiliated governments included in the transfer expenditure in accordance with the provisions of the Ministry of Finance.
Article 14 The revenues of the government-managed fund budget shall include various item revenues and transfer revenues of government funds.
The expenditures of the government-managed fund budget shall include various item expenditures and transfer expenditures corresponding to revenues of the government-managed fund budget.
Article 15 The revenues of the state-owned capital management budget shall include profit revenues, which are paid to the State by wholly state-owned enterprises and wholly state-owned companies, and which shall be included in the state-owned capital management budget in accordance with laws, administrative regulations and the provisions of the State Council, revenues from dividends and bonuses obtained from companies controlled or participated in by state-owned capital, revenues from the transfer of state-owned property rights, liquidation revenues and other revenues.
The expenditures of the state-owned capital management budget shall include capital expenditures, costs and expenditures, and transfer expenditures including the funds transferred from the general public budget, and other expenditures.
Article 16 The revenues of the social insurance fund budget shall include revenues from various social insurance premiums, interest revenues, investment revenues, revenues from subsidies for the general public budget, collective subsidy revenues, subsidy revenues from governments at higher levels, revenues paid in by governments at lower levels, and other revenues.
The expenditures of the social insurance fund budget shall include various social insurance benefit expenditures, transfer expenditures, expenditures caused by paying tax revenues to governments at higher levels, and other expenditures.
Article 17 The classification of revenue and expenditure items, and the specific measures for paying in, refunding, or transfer payment between the local budgets at two levels next to each other in hierarchical subordination shall be determined by the local government at the higher level, and shall be submitted to the standing committee of the people's congress at the corresponding level for the record.
Article 18 The classification of revenue and expenditure items, and the specific measures for paying in, or subsidizing between the local social insurance fund budgets at two levels next to each other in hierarchical subordination shall be determined by the local government at a higher level according to the levels of overall planning, and shall be submitted to the standing committee of the people's congress at the corresponding level for the record.
Chapter III Budget Making
Article 19 The "draft budgets" as mentioned in Article 31 of the Budget Law shall refer to the budgets that are made by the governments, departments, and entities at various levels and that have not been examined and approved according to statutory procedures.
Article 20 The "performance evaluation" as mentioned in Paragraph 1 of Article 32 of the Budget Law shall refer to the systematic and objective evaluation of the investment, utilization, output and effect of budgetary funds based on standardized procedures and according to the set performance targets.
The results of performance evaluation shall, according to the provisions, be used as the basis for improving management and preparing future annual budgets.
Article 21 The "standards for budgetary expenditures" as mentioned in Paragraph 3 of Article 32 of the Budget Law refer to standards for making expenditure budgets that reasonably classify budget items and stipulates them separately, including basic expenditure standards and item expenditure standards.
The departments of public finance of local governments at different levels shall, based on the standards for budgetary expenditures formulated by the Ministry of Finance and in combination with the economic and social development level and financial situation of their respective administrative areas, formulate the standards for the budgetary expenditures of their respective administrative areas or at the corresponding level.
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