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April 19, 2014

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Greater transparency accompanies frugality plan

Source: Xinhua | April 19, 2014, Saturday | Print Edition

THE central government has cut more than 800 million yuan (US$128.6 million) from its budget for overseas visits, vehicles and receptions compared with last year amid a nationwide frugality campaign, the Ministry of Finance said yesterday.

Planned spending on the “three public consumptions” in 2014 is set at 7.151 billion yuan, which is only slightly less than actual spending in 2013, but 818 million yuan, or 10.3 percent, less than last year’s budget, the ministry said.

According to the 2014 budget, the government plans to spend 161 million yuan less on official receptions, 126 million yuan less on the purchase and maintenance of vehicles, but 284 million yuan more on overseas visits than was actually spent in 2013.

This year’s budget includes 4.127 billion yuan for vehicles, 1.976 billion yuan for overseas travel and 1.048 billion yuan for official receptions, the ministry said.

In 2013, actual spending in the three areas was 815 million yuan, or 10.2 percent, less than the budget figure.

A senior finance official said the budget cuts were in line with the austerity rules set by the Party.

In December 2012, the newly elected Party Central Committee issued its “eight-point rules” that require officials to strictly practice frugality and clean up undesirable work styles, including formalism and extravagance.

With regard to overseas travel, for example, officials from government departments, institutions and state-owned enterprises must now specify the number of trips, schedules and allowances in detail.

In 2013, all central government departments cut their “general spending” by 5 percent, the official said.

The finance ministry will strictly control the “three public consumptions” budget to ensure spending in these areas keeps falling, he said.

Most provincial-level governments have also slashed their budgets on official vehicles, banquets and overseas trips as a result of the frugality campaign.

Government spending in these areas has long been a hot topic because of frequent reports of the misuse of public funds. The central government first published its spending figures on the three items in 2011 and has been increasing transparency ever since.

Zhang Bin, a researcher at the Chinese Academy of Social Sciences, pointed to the publication of more detailed spending on vehicles as an example of the government’s enhanced transparency.

In previous years, the finance ministry published a single figure for the combined spending by government departments on vehicle purchase and maintenance. But this year, the two categories were separated.

The new format will help the public to better monitor government spending on vehicles, Zhang said.

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