Chen Wenjun:

The last question.

Xinhua News Agency:

Tightening the government's belt is both a solution in response to contemporary developments and a strategy with a far-reaching impact. How will the central government implement the requirement for Party and government organs to keep tightening their belts?

Liu Kun:

It is a very good question. In recent years, finance departments at all levels have implemented the guiding principle of hard work, plain living, and thrift in fiscal work. The effectiveness of fiscal funding has been enhanced to help the Party and government organs live on a tight budget. Take the central government, for instance. Central government departments have exercised strict management over departmental spending, cutting general expenditures for four consecutive years. In 2022, the budgetary spending of central government departments was planned to decrease by 2.1%, while the actual decrease reached 3.5% in budget execution. We have spent money where it can be used most efficiently to better ensure funding for key areas.

General Secretary Xi Jinping once pointed out that hard work, plain living, and thrift are important for continuing our journey to grow in strength and building on past success for new historic achievements. The remarks remind us that tightening the government's belt is a policy we must uphold as a long-term rather than a short-term measure. We should cut expenditures to reorient fiscal resources toward supporting local governments in their efforts to guarantee people's basic living needs and the interests of market players. The government should tighten its belt to let people live better lives. 

During the execution of the budget, an increase in government administrative charges and spending on official overseas visits, official vehicles and official hospitality will lead to a decrease in spending to meet basic living needs. Likewise, transfer payments to local governments may decline when central government expenditures rise. In this regard, we have stepped up efforts and balanced expenditure and revenue nationwide over the three years of the fight against COVID-19. We have spent money where it can be used efficiently and effectively and generally achieved good results. A decline in local revenues hasn't impacted national financial security.

Remaining committed to the instructions of General Secretary Xi Jinping, the MOF will continue to fully implement the requirement of living on a tight budget. We will be as "tight-fisted" and "calculating" as possible, and see that every cent is used where needed most.

First, tighten the budget. Second, strengthen budget execution. Third, make effective use of available fiscal funds. Fourth, carry out regular assessments.

Specifically, we will draw up a tighter budget, cut or cancel inefficient or ineffectual expenditures, and pool resources to ensure funding for tasks involving major national strategies.

We will tighten constraints on budgetary spending and keep additional items in budgets under strict control for which funds may be appropriated. In principle, we will not introduce new policies that increase spending, except for expenditures on emergency response and disaster relief items. Overspending and spending beyond the set standard are forbidden.

We will timely review and recall surplus funds to avoid funds sitting idle for a long period of time. The budget for projects with large carryover funds will be reduced.

We will conduct quarterly assessments of central government departments to evaluate their implementation of living on a tight budget and strengthen the application of assessment results. We will also urge local governments to actively advance the development of an assessment system in this regard to cut administrative costs. Thank you.

Chen Wenjun:

Thank you to Mr. Liu and all the other speakers. Thank you to all my friends in the media. Today's press conference concludes here. Goodbye.

Translated and edited by Zhang Liying, Wang Qian, Liu Jianing, Liu Sitong, Zhu Bochen, Zhang Junmian, Zhang Jiaqi, Wang Yanfang, Mi Xingang, Yuan Fang, Xu Xiaoxuan, Li Huiru, Yan Bin, Huang Shan, Xu Kailin, Ma Yujia, Li Xiao, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.