Nine Problems in Reviewing and Approving the Budgets of Local People's Congresses

• Author: Gao Yunhan

1. The local People’s Congresses have been passive in approving budget plans. The financial department of the upper-level government sets revenue tasks and the local government complies with revenue targets. Local people’s congresses have to approve the budget plan as determined by the upper level government. There are often inconsistencies between budget plans and actual revenues because local People’s Congresses and governments have no autonomy in forecasting revenues.

2. Budget draft delays by upper level governments impact local People’s Congresses’ timely approval of budgetary revenue plans. Every year, upper level governments are unable to issue budgetary revenue plans in timely, causing local governments to be unable to compile drafts of their budgets on time. It is thus difficult for the main content of such drafts to be submitted to the standing committees of the local People’s Congresses for their preliminary review one month before those congresses hold their sessions.

3. Without any papers presenting results from the preliminary reviews, there are no clear directions to local governments on how to amend the budget drafts. Without any preliminary review information for local congresses’ representatives to consult in reviewing the budget drafts, the preliminary review loses its meaning. Without preliminary examiners from local People’s Congresses being able to participate in budget drafting, the quality of the preliminary review is not high.

4. There are no clear criteria and process for budget review. The current Budget Law has no provisions for the local People’s Congresses’ budget review procedure, content, or resolution of problems identified in the review.

5. Compiled budgetary revenue plans are very general and have no public transparency. The budgetary revenue plans submitted...