2. We need to work hard on reform of the budgetary management system to make it more scientific and modern. We will be carrying out a timely review of our experience in the classification of government revenue and expenditure items. In order to address new situations and problems, we need to improve the arrangement of budget items and work out a budgetary management model under the new classification system. On the basis of a sound system of standards for expenditures, we will launch a trial formulation of budgets for 14 central government departments and enterprises, including the Ministry of Agriculture. To make these budgets more detailed, expenditure items will be organized according to economic classification. In addition, we will thoroughly study the issue of how to improve the report format for the government budget so that the budget truly gives a complete picture, is more open and transparent, and is easier to oversee. We need to continue to strengthen the management of surplus revenue, energetically carry out performance evaluation trials and set up a sound system of standards for expenditures. Public service institutions subject to the Civil Service Law will be incorporated into the trial to set funding according to the number of employees in order to replace the practice of setting the allowable amounts for in-kind expenditures with the method of setting funding according to number of employees. We will work out a mechanism for organically integrating asset management and budgetary management. We need to expand the reform to centralize expenditures in the treasury at the level of the central and provincial governments to incorporate all lower-level organs that compile budgets, central government funds, retirement funds, and government funds held at the provincial level. All prefecture and city governments should strive to carry out this reform, and county governments should energetically work for progress in this reform. All organs under central government departments and revenue-collecting organs will carry out reform of the collection and disposal of non-tax income, the scope of funds included in the reform at the provincial level will be expanded to cover all non-tax income, and the reform should also be energetically promoted below the provincial level. We need to further improve the government procurement system. The scope of items subject to government procurement will be expanded and greater use will be made of special allocations for particular purchases to give full play to the function of government procurement policy and to standardize government procurement procedures. We need to tighten management of the state-owned assets of administrative bodies and public service institutions. We will review the assets of these bodies and institutions, introduce rules and regulations on the management of such assets and set up the basic elements of a dynamic national information system to monitor and manage these assets. We need to accelerate work to set up the Government Financial Management Information System, make better use of advanced information technology in budgetary management and raise the level of budgetary compilation and management.

3. We need to work hard to ensure that key expenditures are met and effectively standardize the management of dedicated funds. The central government and local governments at all levels need to work hard to adjust the pattern of expenditures strictly in accordance with the Scientific Outlook on Development and with the requirement to build a harmonious socialist society. Governments from the highest to lowest level must make a concerted effort to ensure that all key expenditures identified by the Central Committee and the State Council are met and fully reflected in the compilation and execution of their budgets. We need to work hard to institute standardized management of dedicated funds, making substantial progress as soon as possible. We must strictly control the addition of new budgetary items earmarked for special purposes, and any such new item in the central budget not specifically required by law, regulation or decree of the State Council must be approved by the State Council. We need to standardize special transfer payments and improve measures for the handling of such funds to make their handling more open, transparent and standardized. We need to review special transfer payments to eliminate overlap and redundancy wherever possible and also ensure that such payments truly realize their stipulated purpose. We need to improve the compiling of special transfer payments in the budget, gradually incorporating them into local budgets, and centralize expenditures from special transfer payments in the treasury. (More)