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SCIO press conference on fiscal revenue and expenditure in 2023

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Chen Wenjun:

The last two questions, please.

CNR Business Radio:

Performance-based budgetary management plays a crucial role in improving the efficiency of fiscal funds. What new progress and achievements have financial authorities made in this regard? What efforts will be made to further improve the efficiency of performance-based budgetary management in 2024?

Wang Jianfan:

Performance-based budgetary management is a crucial component in improving the modern budget system. In September 2018, the CPC Central Committee and the State Council issued a guideline to establish a performance-based budgetary management system, making specific arrangements for performance-based budgetary management. Following the guidelines, the MOF established and improved the performance -based budgetary management system, enhancing its quality and efficiency. As a result, a whole-process performance-based budgetary management mechanism has taken shape, guiding all regions and departments to develop a performance-awareness culture, and improving the efficiency of fiscal policies and the quality of public services.

In 2023, we stepped up our efforts to shore up weaknesses in a targeted and problem-oriented manner, and to improve the quality and efficiency of our work in key links. We have ramped up efforts in the following six aspects:

The first aspect involves efforts in conducting trials on performance evaluation prior to the implementation of programs and policies. By combining budget reviews with project approvals, we conducted ex-ante performance evaluations for major projects that are newly added or extended by central departments and ministries, as well as newly established transfer payments, to make the budget-making process more science-based from the very beginning.

The second aspect is to strengthen the management of performance targets. We achieved full coverage in managing performance targets for project expenditures by central departments and ministries, transfer payments under shared fiscal powers, and special transfer payments. Moreover, we provided guidance to ensure that central departments, ministries, and local financial departments set their performance targets in a scientific manner. We also made greater efforts to review performance targets for key projects, improving the quality of the performance targets set.

Third, we strengthened oversight of budget performance. During the budget execution, we relied on the integrated central budget management system to carry out oversight of budget performance, analyzed key projects' implementation progress and attainment of performance targets, as well as fixed performance deviations and fund management loopholes in a timely manner.

Fourth, we improved the quality and effectiveness of performance assessment. We have organized a comprehensive performance self-assessment of central authorities' project spending, integrated transfer payments under shared fiscal powers , and special transfer payments. In accordance with the principles of priority and quality, we assessed the performance of 52 projects in key areas such as education, sci-tech, and agriculture and rural areas.

Fifth, we stepped up the application of performance assessment results. Linking the assessment results with budget arrangements, we lowered to different extents the budget for central projects with lower scores in the key fiscal performance assessment in 2023. For regions with poorer performance, we reduced transfer payment allocation modestly.

Six, we worked to report and disclose performance information. The performance goal and assessment results of key projects were reported to the National People's Congress. Together with the public disclosure of the budget and final accounts of central authorities, we organized central authorities to disclose the performance goal of 811 projects and assessments results of 745 projects, increasing from the previous year. 

Next, the MOF will continue to improve the budget performance management system in accordance with the overall requirements for a sound and modern budget system and give better play to the role of budget performance management in optimizing the allocation of resources and improving the effective use of funds. Thank you.

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