Experts urge clarification of govt spending

As government spending on overseas trips, cars and banquets continues to make headlines, some observers are lobbying lawmakers to clarify the expenditures in the Budget Law.

Supporters said the inclusion of clear explanations will help with keeping a closer watch on the government's wallet.

Government spending on overseas trips, car purchases and maintenance, and receptions - collectively known as "three expenses" - has been questioned over the amounts involved and lack of transparency.

Central government departments spent 9.36 billion yuan ($1.47 billion) last year on the three expenses, and several ministries and departments have exceeded their approved budgets on the items, the Ministry of Finance said in a report in June.

But the report did not give a breakdown of the total cost, such as how many cars the government owns or other details of how the money was used.

Liu Jiayi, head of the National Audit Office, said the reason governments did not disclose many details is a lack of agreement among officials about what the three expenses are.

Although a regulation published in 2008 has required governments to release annual reports on the three expenses, China's Budget Law does not specifically put forward such a requirement or a request to cut the cost.

Shi Zhengwen, fiscal law professor at China University of Political Science and Law, said that because the three expenses are not clearly defined in the Budget Law, people hold various understandings of the phrase and of what should be included in the expenses.

He also said the lack of standards has enabled governments to put off their obligation to release details of spending on the three expenses and just release a general figure.

Shi said he has found hope in the latest regulation introduced by the State Council that is meant to improve government management and also address the issue of standardizing the definition of the three expenses.

The rules, due to take effect in October, are the country's first legal documents that ask governments above the county level to include spending on the three expenses in budgets. It asks governments to regularly publish the numbers and types of official vehicles, to set up guidelines for official receptions, and to limit the number of officials making overseas trips.

Ren Xiaolan, a professor at the Law School of Tianjin University of Finance and Economics, however, dismissed the idea of writing an explanation of the three expenses into the Budget Law, saying it would not be cost-effective.

"To clarify what constitutes the three expenses is important, but not necessarily in the Budget Law, since legislation can be very difficult and it usually takes a long time," she said.

Ren suggested instead to include the clarification in a lower-level regulation.

zhaoyinan@chinadaily.com.cn