The Chinese National Audit Office announced that the Ministry of Railways illegally held up 1.72 billion yuan (208 million US dollars) in 2003, in violation of China's budget law.

The National Audit audited the Ministry of Railways and its affiliated units at the end of 2003. The office found that the ministry applied for 23.88 billion yuan (2.9 billion US dollars) for railway construction in 2003. The amount was approved by the Ministry of Finance.

However, the Ministry of Railways reported using only 18.26 billion yuan (2.2 billion US dollars) to the State Development and Reform Commission for the planned projects during the same period, 5.62 billion yuan (some 690 million US dollars) less than its budget.

This action by the Ministry of Railways has violated the provisional method on railway construction funds issued by the Ministry of Finance, which stipulates that the Ministry of Railways should submit the budget report to the Ministry of Finance for audit after the projects were approved by the relevant ministries.

Meanwhile, the Ministry of Railways allocated 22.16 billion yuan to its subordinate units, detaining 1.72 billion yuan by the end of the year. This action failed to observe the regulation of budget law that "expenditure of all ministries and departments should comply with the budget."

The Ministry of Railways attaches great importance to the problems. It has submitted its budget report to add 308 million yuan for project changes and appropriated the rest of the detained funds, said the National Audit Office.