Cabinet orders reports on misused money (China Daily) Updated: 2006-07-06 08:38
Nearly 50 government departments have been ordered to explain how 5.51
billion yuan (US$689 million) of government funds were misused last
year.
The State Council, China's cabinet, which yesterday demanded an
explanation for the misuse of funds, will report to the legislature by the end
of the year.
Premier Wen Jiabao called for the probe in a drive to
correct budget problems.
The council urged departments to
"conscientiously analyze their problems and immediately correct wrongdoing to
give the Chinese people a serious, responsible and satisfactory reply."
A
release from the State Council's meeting, in Beijing, said budgeting and budget
implementation were "an important duty entrusted by the Constitution to the
State Council" and all departments must rigidly enforce the central budget
approved by the Standing Committee of the National People's Congress, China's
legislature.
A source at the meeting said the State Council stood by the
annual audit report, delivered by the National Audit Office in June, on misused
central funds last year and the rectification orders of the
legislature.
State councillors agreed the closure of loopholes in the
budget management system was a high priority and told central government
departments to improve transparency in their budgets and make revenue
forecasts more realistic.
The release said the State Council was
deliberating measures to bring revenue from the transfer of land use rights into
the central budget, as well as a package of fiscal and taxation policies
targeting economic development zones.
The central government will reform
investment mechanisms to ensure the tasks and responsibilities of local
governments are separated from those of businesses.
The State Council
also agreed to impose tighter controls on expenditure and to improve the
auditing of central budget funds.
It reiterated that departments and
officials who breach regulations or misappropriate funds will be held
responsible for their actions.
The State Council urged all departments to
fully support auditors and take the initiative on self-discipline.
The
meeting also discussed, and approved in principle, an outline for China's
cultural development between 2006 and 2010 and a draft regulation on the
management of Yellow River water resources. (For more biz stories, please visit Industry Updates)
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