Faces of China

This translation was made for information purposes only. The views expressed in the article are that of the author and him alone

Author: Southern Daily’s Yuan Cheng (袁诚) reporting from Shenzhen
Link to original article: http://www.infzm.com/content/41537

Translated by André Holthe

Adam Smith once said: Public finance is the mother of government. The variation in a country’s revenues shows the power of that country’s economic development and the distribution of wealth that follows ought to reflect the principles of fairness, openness and justice.

At the ongoing Guangdong Province Congress meeting, the Guandong Province’s financial chief Liu Kun responded to the province’s representative of the National People’s Congress plead for time by saying that making budgets public is “against the law” and “requires legal support.”

Is it really illegal to Make budgets public? We interviewed Wu Junliang – the founder of the volunteer organization “Public Budget Observers”.

1 Does citizens and taxpayers have a right to demand government budgets to be public?

To get comprehensive information about public budgets is the basic right of all taxpayers and citizens; it’s equally basic as people’s right to breath. From 01.05.2008 the “Public Information Regulations” were put into effect, clearly stating that all government from county level and up and its branches ought to make government information know to the public, including financial budgets and financial statements.

2. Which cities and departments make their budgets public in China?

Among the important ones in the Central Government in Beijing we have the Bureau of Environmental Protection, the Ministry of Health and the Ministry of Civil Affairs. On the local level we have the cities of Guangzhou, Shenzhen and Jiaozuo. Among the important districts we have the LongGang district in Shenzhen. It’s still an insignificant number, but we are making great progress.

3. You once said that public budgets “should become an instrument of the citizens”. Can you elaborate on this?

WJL: The importance of making budgets public is greater than anything else, because it’s only through public budgets that we can know what the government is planning to do. Those who agree can agree and those who disagree can demand changes. Those who want changes can raise their demands and make suggestions, thereby changing public policies.

4. October last year, the Guangzhou Fiscal Bureau published their yearly fiscal budget online, but it’s difficult to promote this in the country as a whole. What makes it so hard?

WJL: The problem is that the traditional mode of thought and the traditional system needs to be reformed. In the government there are a lot of people who believe that fiscal budgets should not be revealed to taxpayers and citizens. To change this deeply rooted thoughts is not easy. Because fiscal budgets are drafted within the system, reforming it will harm the interests of a few government officials.

5. How do you get the government to accept public budgets and public supervision?

WJL: The revision of the “Budget Law“requires implementation and supervision mechanisms. Public budgets ought to be geared to the needs of the public. The time to review the budget can’t be too short, it should allow representatives of the People’s Congress to fully consider and then have the right to challenge or even reject the budget.

6. Are there any countries we can draw lessons from?

WJL: You don’t have to go as far as other countries, just look at Hong Kong who are doing great by making their financial budget public. This conduct reflects 5 things: 1. They are open and transparent. During the whole process of drafting the budget the financial administration has to be open towards society and give them an understanding of the process. 2. When formulating the financial budget, it has to go through the strict control of legislators. 3. After making the financial budget public they put it right up on the web, making it accessible for those who are interested. 4. The financial administration publish their phone number and answer questions from the public. 5. The Legislative House is responsible for conducting a strict and scientific audit.

7. When companies report you can see if there are any problems, but when the government reports on the financial budget it’s indeed not comprehensible, why is that?

WJL: The government still doesn’t want people to understand. Because the announced budget is
all rough accounts, it lacks detailed sums and itemized accounts. The services the government provides to the representatives of the People’s Congress are not good enough. They need more assistance and explanation.

8. How can we improve the representatives’ understanding of the financial budget?

WJL: They should be provided with more time to examine the financial budget. Practically speaking, there should be held lectures on the how to understand the budget on the representatives yearly conference. it would also be possible to give them the opportunity to find professionals to assist them interpret the budget.
Furthermore, the Ministry of Finance should provide the representatives with comprehensive services, including a 24 hour hotline providing representatives with answers and explanations.

9. What can people do?

WJL: The People’s Political Consultative Conference could be like the Olympics or the Asian Games where you open for volunteers; allowing volunteers to help the representatives in understanding the budget.

10. You’ve been insisting on public budgets for the past 10 years, has there been any change?

WJL: In 2008 I requested the financial budgets of more than 50 government branches, including 16 in the central government and 35 at locals levels. Almost half of them replied, but most of they all refused to give it out on the basis of the information being “state secrets”. Only the city of Shenzhen agreed to publish it.

In 2009 we doubled the number of positive responses, the majority still refused, but only 10 % used the word “state secret”, they changed it to “we are in the process of improving our work and are awaiting the conclusion from higher authorities.”. This shows that the government has started to look into the issue.

Comments on the article online:

“Kill the corrupt dictatorship of the CCP!”

“They can’t make it public. How can the Master let the slave in on the expenses.”

“The government is afraid of supervision, so they try every means to not let the people know what they’re up to.”

“This is the last fig leaf of corruption, it’s an Iron Curtain. The people will have to tear it apart.”

“Hard or not, that depends on who has the final say.”

“If they make it public, how will they get their slush funds then? Harmonious society, right? But it’s only we common people who have to be harmonious”