Year-end splurges criticized
By Wang Qingchu |
November 24, 2011, Thursday
|
Print Edition
Print Edition
CHINESE government departments and institutions are set to embark on a 3.5 trillion yuan (US$551 billion) spending binge as the year end looms.
Money not used by the deadline cannot be carried over and must be handed back to higher financial authorities.
The fact that budgets for the following year are based on the previous year's spending provides further incentive to splurge cash.
The year-end spending frenzy leads to corruption and extravagance, China Youth Daily reported yesterday.
Experts are now calling for the revision of China's Budget Law to bring an end to year-end spending sprees.
According to Finance Ministry statistics, spending in December is set to top 3.5 trillion yuan - equivalent to Switzerland's 2010 GDP.
"Prudence doesn't benefit government institutions," Ye Qing, deputy director of the Statistics Bureau of central China's Hubei Province, said.
"On the contrary, it means the budget for the following year will be cut."
As officials rack their brains on how to use up budgets, money sometimes goes to unnecessary projects at inflated prices.
Chen Rong, a businessman in central China's Hunan Province, took the local government to court, alleging corruption in its procurement process, as at the end of 2010, it spent 30 million yuan buying goods worth half the sum.
Lavish year-end events, such as banquets and trips, are also common.
This month, a draft of a revised Budget Law was approved at a State Council executive meeting.
Money not used by the deadline cannot be carried over and must be handed back to higher financial authorities.
The fact that budgets for the following year are based on the previous year's spending provides further incentive to splurge cash.
The year-end spending frenzy leads to corruption and extravagance, China Youth Daily reported yesterday.
Experts are now calling for the revision of China's Budget Law to bring an end to year-end spending sprees.
According to Finance Ministry statistics, spending in December is set to top 3.5 trillion yuan - equivalent to Switzerland's 2010 GDP.
"Prudence doesn't benefit government institutions," Ye Qing, deputy director of the Statistics Bureau of central China's Hubei Province, said.
"On the contrary, it means the budget for the following year will be cut."
As officials rack their brains on how to use up budgets, money sometimes goes to unnecessary projects at inflated prices.
Chen Rong, a businessman in central China's Hunan Province, took the local government to court, alleging corruption in its procurement process, as at the end of 2010, it spent 30 million yuan buying goods worth half the sum.
Lavish year-end events, such as banquets and trips, are also common.
This month, a draft of a revised Budget Law was approved at a State Council executive meeting.
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