Report of the Finance and Economic Committee of the 14th National People's Congress on the Review Results of the 2022 Central Final Account Draft Fund | Budget | Central

Xinhua News Agency, Beijing, June 28th

Report of the Finance and Economic Committee of the 14th National People's Congress on the Review Results of the Central Final Account Draft for 2022

——On June 26, 2023, at the Third Session of the Standing Committee of the 14th National People's Congress

Shi Yaobin, Vice Chairman of the Financial and Economic Committee of the National People's Congress

The Standing Committee of the National People's Congress:

The Third Plenary Session of the Finance and Economic Committee of the 14th National People's Congress listened to the "Report on the Central Accounts for 2022" commissioned by the State Council by the Ministry of Finance and the "Audit Work Report on the Implementation of the Central Budget and Other Financial Income and Expenditure for 2022" commissioned by the State Council by the National Audit Office, and combined with the audit work report, conducted a preliminary review of the draft central accounts for 2022 and proposed preliminary review opinions on the draft central accounts. The Ministry of Finance has conducted research and feedback on the preliminary review opinions of the Finance and Economic Committee, and the report on the handling of the preliminary review opinions and feedback has been issued to the meeting. The review results are now reported as follows.

The draft of the 2022 central final accounts reflects that firstly, the general public final accounts revenue of the central government is 9488.7 billion yuan, which is 100% of the budget, an increase of 3.8% compared to the previous year. In addition, a total revenue of 10755.2 billion yuan is transferred from the central budget stability adjustment fund, central government funds budget, and central state-owned capital operation budget, totaling 1266.5 billion yuan; The central general public final accounting expenditure was 13251.3 billion yuan, accounting for 98.9% of the budget, an increase of 13.1%. In addition, the supplementary central budget stability adjustment fund and the transfer of funds from the central government fund budget amounted to 153.9 billion yuan, resulting in a total expenditure of 13405.2 billion yuan; The total amount of revenue and expenditure is balanced, with a central fiscal deficit of 2650 billion yuan, which is in line with the budget. The central government transferred 9694.2 billion yuan to local governments, accounting for 98.9% of the budget, an increase of 16.9%. Among them, general transfer payments amounted to 8081.1 billion yuan, accounting for 98.4% of the budget, an increase of 7.1%; Special transfer payments amounted to 759.7 billion yuan, accounting for 96.9% of the budget and an increase of 1.5%. At the end of 2022, the balance of the Central Budget Stability Adjustment Fund was 255.6 billion yuan. The second is that the final settlement income of central government funds is 412.4 billion yuan, which is 97.8% of the budget, an increase of 3%. In addition to the carried over income, transferred funds, and profits paid in by specific state-owned financial institutions and specialized institutions, the total revenue is 2272.9 billion yuan; The final expenditure of the central government's funds was 633 billion yuan, accounting for 78.4% of the budget, an increase of 60.7%. It was transferred to the central general public budget of 900 billion yuan and carried forward to continue using 739.3 billion yuan next year. The third is the final revenue from the operation of state-owned capital by the central government, which is 234.3 billion yuan, accounting for 103.3% of the budget, an increase of 17.2%. With the transfer of revenue, the total revenue is 269.9 billion yuan; The final expenditure on state-owned capital operation by the central government was 171 billion yuan, accounting for 99.2% of the budget, an increase of 60.6%. Transferred 90 billion yuan from the central general public budget and carried forward 8.9 billion yuan from next year's expenditure. The fourth is that the final settlement income of the Central Social Insurance Fund is 35 billion yuan, which is 82% of the budget, a decrease of 60.7%; The final expenditure of the Central Social Insurance Fund was 37.3 billion yuan, accounting for 75% of the budget, a decrease of 58.2%; Implement the national pooling system for basic pension insurance for enterprise employees, with local governments contributing 244 billion yuan and the central government allocating 244 billion yuan; At the end of the year, the accumulated balance was 9.2 billion yuan. By the end of 2022, the balance of treasury bond of the central government was 25869.276 billion yuan, the balance of general debt of local governments was 14396.167 billion yuan, and the balance of special debt was 20669.124 billion yuan, all within the limits approved by the National People's Congress.

Compared with the execution of the central budget reported to the first session of the 14th National People's Congress, the 2022 draft of the central final accounts showed an increase of 216 million yuan in general public final accounts revenue, a decrease of 20.202 billion yuan in final accounts expenditure, and a total increase of 20.418 billion yuan in revenue and expenditure savings. The Central Budget Stability Adjustment Fund has been supplemented; The budget of government funds and the final accounts of revenue and expenditure of state-owned capital operation budget are the same as the executed amount; The final settlement income of the social insurance fund decreased by 2.661 billion yuan, and the final settlement expenditure increased by 933 million yuan.

The National Audit Office has continuously strengthened its initiative in serving the overall situation of the Party and the country, based on the positioning of economic supervision, and conducted audits in accordance with the law on central financial management, departmental budget execution, major projects and key livelihood funds, state-owned asset management, etc. in the preparation of the central final accounts draft for the year 2022. Relevant problems and clues related to major violations of discipline and law have been discovered, and audit suggestions have been put forward, playing an important role in promoting the implementation of the Party Central Committee's decision-making arrangements and improving the financial budget system. According to relevant laws and regulations, the State Council shall report to the Standing Committee of the National People's Congress on the rectification of audit issues before the end of this year.

The Finance and Economic Committee believes that the overall situation of the central final accounts in 2022 is good and in line with the provisions of the Budget Law. It is recommended that the Standing Committee of the National People's Congress approve the draft of the 2022 central final accounts proposed by the State Council. Relevant departments and localities should attach great importance to the problems identified through auditing and the suggestions put forward, and conscientiously and solidly carry out rectification work.

The Financial and Economic Commission believes that the 2022 Central Accounts and Audit Work Report also reflects some issues in budget preparation, budget execution, and financial management. There are mainly: some key expenditure policies are not fully implemented, and some key livelihood funds are intercepted and fraudulently obtained; Some of the transfer payment projects of common fiscal powers are not connected enough with the allocation of expenditure responsibilities, and some transfer payment projects have overlapping and overlapping; Some project performance indicators fail to reflect the implementation of central policies and guidelines, while others have low quality self-evaluation of performance; Some local fiscal revenue and expenditure contradictions are prominent, and the operation of grassroots finance is relatively difficult; Some cities and counties have higher debt risks, and new implicit debts still occur; The enforcement of financial discipline is not strict enough; Some of the funds transferred in and out between the four budgets are not standardized enough, and there are more funds transferred from government fund budgets and central department budgets.

In order to thoroughly implement the decisions and deployments of the Party Central Committee, fully implement the Supervision Law, Budget Law, strengthen the central budget review and supervision decisions, and the budget resolutions of the National People's Congress, and further do a good job in financial budgeting and audit supervision, the Finance and Economic Committee puts forward the following opinions and suggestions:

1. Standard Budget Final Accounts Compilation

The budget is prepared in accordance with the functional orientation of the budget law on the four budgets, the transfer of funds between various types of budgets is strictly controlled, and the presentation and use of funds is regulated. When preparing departmental budgets, full consideration should be given to the balance of funds carried forward from the previous year, and the use of funds carried forward should be accelerated in the implementation of the budget. Strictly follow the budget approved by the National People's Congress, and report to the Standing Committee of the National People's Congress for review and approval if budget adjustments are involved. It is necessary to actively respond to the concerns of deputies and committee members and study the addition of a regional table of general and special debts of local governments to the draft final accounts. Studying the establishment of a tax-based expenditure system and regulating tax incentives. Strengthen the construction of the government's comprehensive financial reporting system, and do a good job in asset inventory, accounting and information construction and other basic work.

2. security major policy implementation

Strengthen macro-policy control, strengthen the coordination and cooperation of various policies, and form a joint force to promote high-quality development. Strengthen fiscal and taxation policy measures support and financial guarantees for key areas such as building a modern industrial system, restoring and expanding domestic demand, and promoting employment. We will increase the proportion of transfer payments, especially the central capital construction expenditure budget, to local governments in advance, and promote the timely use of funds. Increase financial supervision, strengthen the implementation of major projects and the use of key livelihood funds to track and supervise, to ensure the implementation of major policies.

3. Strengthen Budget Performance Management

Focus on the implementation of major national strategic tasks and major policies, and carry out key performance evaluation. Improve the scientificity and rationality of budget performance goals and indicators, link up with national strategic goals and medium and long-term plans, and match the main responsibilities and tasks of the department. Broaden the scope of performance management and promote the performance management of overall departmental expenditure and fiscal revenue. Improve the quality of performance evaluation, increase the verification of self-evaluation results, guide and standardize third-party institutions to participate in budget performance management, and ensure that the evaluation results are objective, true and fair. Strengthen the construction of the mechanism linking the results of performance evaluation with the improvement of policies and budget arrangements. Improve the performance information disclosure system.

4. Preventing and Resolving Local Government Debt Risks

Combined with the tracking and judgment of economic development trends and regional fiscal revenue and expenditure, scientifically determine the scale of China's medium-and long-term local government debt and the level of sub-regional debt limits. Guide the local government to do a solid job in the construction of the project library and preliminary preparations, and improve the efficiency and effectiveness of the use of bond funds. Establish a government debt service reserve system to prevent the risk of debt payment. Steadily promote the consolidation of local government hidden debt and statutory debt supervision. It is strictly forbidden to add new projects and new stalls through new hidden debts, and to be seriously accountable for illegal and illegal debt financing. Strengthen the comprehensive management of local financing platform companies, accelerate the market-oriented transformation of platform companies, and strictly regulate government-social capital cooperation projects. Further strengthen the construction of a market-oriented and rule-of-law debt default disposal mechanism. Promote local governments to report government debt to the people's congresses at the same level in accordance with regulations.

5. Pushing to Solve Grassroots Financial Difficulties

We will further rationalize the financial relations between governments below the provincial level, so that the distribution of financial resources is relatively balanced and grass-roots security is more powerful. Accelerate the construction of the local tax system, push forward the consumption tax collection link and lower the local reform. To meet the needs of the rapid development of the digital economy, we will study and improve the relevant tax system and optimize the tax collection and management mechanism. Urge local authorities to organize revenue in accordance with the law and improve the quality of fiscal revenue. Support local governments to speed up the development of county economies, cultivate and expand tax sources and financial resources, and enhance the "blood-making" capacity of grass-roots finances. Optimize the distribution of balanced transfer payments and strengthen the management of special transfer payments. The relevant departments of the central government should earnestly strengthen the examination and control of the scope and standards of local basic public service expenditure, so as to prevent the expansion and bid raising behavior that is divorced from the local reality. Resolutely implement the requirements of living a tight life and strictly control general expenditures.

6. to increase audit supervision

In accordance with the Party Central Committee's policies and deployment requirements, increase the audit of major investment projects, central transfer payments, local government debts, and key livelihood funds. The audit of the implementation of the central budget should fully reveal the problems in the approval, adjustment and implementation of the budget. In-depth analysis of the causes of the problems identified by the audit to enhance the pertinence of audit recommendations. Do a good job in the audit rectification "second half of the article", compaction rectification of the main responsibility. The departments responsible for rectification and reform should strengthen management, plug loopholes, improve the long-term mechanism of rectification and reform, and seriously pursue accountability for violations of laws and regulations. Strengthen the application of audit results and do a good job in the announcement of audit results.

Please review the above report.