Governments will step up the use of electronic governance and
improve transparency to achieve efficiency and rein in soaring
expenditure.
A report from the Legislative Affairs Office (LAO) of the State
Council released yesterday shows that since the reform and opening
up, administrative expenditure has risen at an annual average of
17.7 percent, 5.4 percentage points more than the 12.3 percent
increase in total fiscal expenditure.
In 1978, administrative expenditure accounted for only 4.7
percent of fiscal expenditure, but in 2005 the figure reached about
24 percent, the report said. In other countries, the rate is
usually 3 to 6 percent, according to media reports.
"Excessive expenditure has marred governments' image and lowered
efficiency," said Li Yuede, director of the LAO's research center.
"The problem demands quick resolution, otherwise the improvement in
government functions and administrative reform would be in
vain."
Li made the remarks yesterday at the International Symposium on
China's Rule of Law in Beijing.
Redundant officials, lavish banquets and tours, unnecessary
meetings and private use of public cars are all reasons behind the
rising cost, according to the report.
Although government restructuring had led to a drop in the
number of government departments, the number of people dependent on
government expenditure remained about the same, the report
said.
"Those 'laid off' were simply transferred to institutions where
they continue to live on taxpayers' money."
Official figures show that in 2000, 43 million people were paid
by the government, 10 million employed directly and the remaining
in affiliated institutions. At an average annual pay of 10,043 yuan
(US$1,304), more than 430 billion yuan (US$$55.8 billion) was
spent, accounting for 32 percent of the fiscal expenditure that
year.
To reduce costs, Li said the central government will further
promote electronic administration and strengthen supervision over
public budgets.
"With modern information technology and the Internet,
governments can boost efficiency, and streamline their structure
and staff," he said, adding that stricter controls over budgets
would help reduce waste of public money.
Also at the symposium, LAO Deputy Director Wang Yongqing said
the country will set up a more transparent administration to allow
greater public participation in shaping legislation.
He said there would be more public hearings and expert
consultations.
Arthur Mitchell, general counsel of the Asian Development Bank,
which organized the symposium, agreed that greater transparency was
necessary to realize rule of law in China.
(China Daily May 16, 2007)