Can constrained transfer payment curb ＂running money into the department＂

The revised budget law requires the establishment and improvement of a "regular evaluation and withdrawal mechanism" for special transfer payments. Where the market competition mechanism can effectively regulate matters, "special transfer payments shall not be established". In addition to the matters shared by the lower and higher levels of government, the higher level shall not require the lower level to support the special transfer payment.

The issue of fiscal transfer payment has always been a major focus of public concern about the revision of the budget law. In the previous deliberations of the budget law, members of the Standing Committee often pointed out that the proportion of special transfer payments is relatively large, even higher than that of general transfer payments. Then, what kind of provisions does the revised budget law make for the financial transfer payment system, especially the special transfer payment? After the implementation of the budget law on January 1, 2015, how much will it restrict the problems of low efficiency, lack of effective supervision and misappropriation of some special funds? Some highlights of the new budget law on fiscal transfer payment can answer these questions.

The reporter learned that transfer payment is an activity that governments at all levels transfer financial funds through certain forms and channels to supplement public goods and provide free expenses. It is also an important means for China to make up for the financial gap brought about by the financial system characteristics of "highly decentralized expenditure and centralized taxation". It seems that the central government’s transfer payment to local finance is far away from the people, and many livelihood funds such as education, medical care and social security, which are actually related to the well-being of the people, come from transfer payment. Too much special transfer payment will encourage the local atmosphere of "running the department to make money", lead to corruption and waste, and increase the burden of local supporting facilities, which will become a difficult problem for reform. However, there is no corresponding regulation and management in the current budget law, which also brings some problems, such as fund abuse, "running out of money" and inefficient use of funds.

Therefore, the revised budget law stipulates the financial transfer payment, and clarifies the legal status of the transfer payment for the first time, which is a great progress. In particular, the revision of the budget law is consistent with the policy tone of "increasing the general and reducing the special" proposed by the central government, emphasizing the exit mechanism of special transfer payments and legalizing the follow-up management of special transfer payments, which has become the highlight of the revision of the budget law. The revised budget law clearly stipulates the financial transfer payment system. According to the law, the state implements the financial transfer payment system. Financial transfer payment should be standardized, fair and open, with the main goal of promoting the equalization of basic public services between regions. Financial transfer payment includes the transfer payment from the central government to the local government and the transfer payment from the local higher-level government to the lower-level government, with the general transfer payment as the main body to balance the basic financial resources between regions and be arranged and used by the lower-level government as a whole.

The law also stipulates that special transfer payments can be set up to handle specific matters in accordance with laws, administrative regulations and the provisions of the State Council. Establish and improve the regular evaluation and withdrawal mechanism of special transfer payments. For matters that can be effectively regulated by the market competition mechanism, no special transfer payment shall be established. When arranging special transfer payments, the higher-level government shall not require the lower-level government to bear matching funds. However, in accordance with the provisions of the State Council, matters that should be shared by the higher and lower governments are excluded.

Moreover, the new budget law also makes detailed provisions on the budget preparation of transfer payments, and the general transfer payments are prepared according to a unified method. At present, the general transfer payment from the central government to the local government has been compiled according to the formula method, and the basic principles and methods have been formulated by the relevant departments of the central government, with a unified and open calculation formula. "All regions can know how many general transfer payments there are according to the same standards and methods. This way, the central budget can enter the local budget as soon as possible. " Liu Shangxi, deputy director of the Institute of Fiscal Science of the Ministry of Finance, said.

In terms of special transfer payment, the previous special transfer payment generally determined a special project first, and then assigned to provinces, cities and counties, and then operated after the budget was approved. Liu Shangxi said, "Because the special transfer is related to various departments, it is difficult to get in place in supervision, management and performance appraisal, and even lead to corruption." In this regard, the new budget law requires sub-regional and sub-project preparation. First, tell what projects to do, how much money is needed, where the money will be used specifically, and where it will be allocated. It must be clear in advance, and you can’t wait until the budget is compiled to find the project with money.

On August 31st, when answering a reporter’s question about financial transfer payment, Finance Minister Lou Jiwei said that comprehensive measures are needed to solve the problem of financial transfer payment, which has been comprehensively stipulated in the budget law. For example, the new budget law clearly requires that the budget must be complete and open. Except for confidential information, it should be made public in principle. "Openness is the best sunshine", because some special transfer payments have repeated objectives and little effect. The Third Plenary Session of the 18th CPC Central Committee proposed to clean up, integrate and standardize the special transfer payment. By opening the budget, some special transfer payments can be reduced, which is conducive to the merger of similar items. ?

For another example, the new budget law requires the establishment of a cross-year budget balance system, and it is necessary to make medium-and long-term budget planning. In the past, we used to make budgets on an annual basis, and fiscal revenue and expenditure, including income system and expenditure policy, are medium-and long-term policy tools. Therefore, the implementation of medium-and long-term planning, rolling budget and rolling planning can make the policy have long-term consideration, demonstrate scientifically, reduce fragmentation and randomness, and also help reduce special transfer payments.

"The next step is to standardize integration in accordance with the requirements put forward by the Third Plenary Session of the 18th CPC Central Committee. Generally speaking, the goal is clear, the means are clear, and don’t cut it too thin. Distinguish between the responsibilities of the central and local governments, and the central and local governments jointly arrange expenditures. The part of the special transfer payment that belongs to the local responsibilities is gradually cancelled and becomes a general transfer payment. Entrust local matters to minimize. " Lou Jiwei said. By taking the above measures, "special transfer payments will be reduced and general transfer payments will increase." (Text/reporter Wang Ping)