Transparency made key to govt financial reports

Editor: 管理员      Date:2015-01-05      Hit:3399
%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20Ministry%20of%20Finance%20requires%20that%20by%20the%20end%20of%202020%20all%20levels%20of%20government%20in%20China%20publicly%20release%20detailed%20financial%20reports.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EUnder%20the%20measure%20approved%20by%20the%20State%20Council%20on%20Wednesday%2C%20governments%20must%20disclose%20in%20these%20reports%20their%20assets%2C%20debts%20and%20operational%20costs%2C%20which%20currently%20are%20not%20included%20in%20their%20annual%20financial%20reports.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20approval%20of%20the%20regulation%20marks%20the%20official%20beginning%20of%20China%27s%20governmental%20financial%20report%20reform%2C%20which%20will%20help%20accelerate%20governmental%20transparency%20nationwide%2C%22%20the%20ministry%20said%20in%20a%20statement.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22At%20present%2C%20governmental%20financial%20data%20released%20to%20the%20public%20are%20incomplete%2C%20and%20thus%20cannot%20reflect%20the%20true%20financial%20situation%20of%20the%20governments%2C%22%20it%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20statement%20said%20there%20is%20good%20reason%20to%20adopt%20a%20new%20system%20of%20accounting%uFF0Daccrual-basis%20accounting%2C%20in%20which%20income%20is%20reported%20when%20it%20is%20earned%20and%20expenses%20when%20they%20are%20incurred%uFF0Din%20government%20financial%20reports%20because%20through%20this%20they%20will%20give%20the%20whole%20picture%20of%20financial%20status%2C%20operational%20progress%20and%20middle%20and%20long-term%20sustainability.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EUp%20until%20now%2C%20government%20financial%20reports%20often%20did%20not%20list%20debts%2C%20assets%20or%20operational%20costs.%20Under%20the%20reform%2C%20the%20reports%20will%20include%20balance%20sheets%2C%20income%20and%20expenses%2C%20and%20comprehensive%20analyses%20based%20on%20the%20data.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20new%20system%20will%20be%20helpful%20in%20regulating%20and%20supervising%20governments%27%20management%20and%20will%20provide%20solid%20information%20for%20the%20credit%20rating%20of%20local%20debts%2C%20said%20an%20industry%20insider%20close%20to%20the%20ministry.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20reform%20will%20be%20carried%20out%20in%20three%20steps.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EFirst%2C%20the%20authority%20will%20build%20up%20a%20government%20accounting%20framework%20this%20year%20and%20collect%20data%20on%20local%20governments%27%20debts.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThen%2C%20in%202016%20and%202017%2C%20some%20local%20governments%20will%20start%20releasing%20accrual-basis%20financial%20reports%20as%20pilot%20projects.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EFinally%2C%20governments%20at%20all%20levels%20will%20be%20required%20by%202020%20to%20release%20the%20reports%20and%20financial%20analyses.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAt%20the%20national%20finance%20conference%20in%20Beijing%20last%20month%2C%20Finance%20Minister%20Lou%20Jiwei%20said%20that%20China%27s%20fiscal%20revenue%20will%20shift%20from%20rapid%20growth%20to%20medium-to-low%20level%20growth%20in%20the%20coming%20years%20and%20that%20fiscal%20management%20must%20be%20more%20strictly%20regulated%20and%20more%20scientific.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELou%20said%20local%20governments%20must%20set%20their%20revenue%20targets%20at%20a%20realistic%20level%20and%20promote%20a%20healthy%20development%20of%20the%20economy.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20government%20should%20avoid%20paying%20too%20much%20attention%20to%20the%20speed%20of%20financial%20revenue%20growth%2C%22%20he%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20asked%20authorities%20to%20focus%20on%20transforming%20the%20economic%20structure%20and%20achieving%20more%20balanced%20growth%20while%20implementing%20positive%20fiscal%20policies.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EReform%20of%20budget%20management%2C%20which%20began%20in%202014%2C%20will%20further%20expand%20governmental%20transparency%20in%20the%20coming%20year%2C%20he%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EFinancial%20priorities%20will%20include%20increasing%20the%20management%20of%20local%20government%20debts%2C%20while%20solving%20problems%20with%20existing%20debts%2C%20and%20strictly%20controlling%20the%20issuance%20of%20new%20loans.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China%20Daily%29%3CBR%3E%3C/FONT%3E%3C/P%3E