Regulation For The Implementation Of The Budget Law Of The People’s Republic Of China - 1995

(The Regulation for the Implementation of the Budget Law of the People’s Republic of China, which was adopted at the 37th executive meeting of the State Council on November 2, 1995, is hereby promulgated for implementation)

Li Peng, the Premier
November 22, 1995
Regulation for the Implementation of the Budget Law of the People’s Republic of China

Chapter 1 General Provisions

Article 1 The present Regulations are enacted in accordance with the Budget Law of the People’s Republic of China (hereinafter referred to as Budget Law).

Article 2 The detached agencies of the local governments at the county level and above shall carry out budget management according to the authorization of the governments at the corresponding levels, however, their budgets are not at separate levels from those of the said governments.

Article 3 The "departments of the central government as mentioned in the first paragraph of Article 4 of the Budget Law" refers to the state organs, military troops, political party organizations, and social organizations that have direct budgetary payment and appropriation relationship with the Ministry of Finance; the "entities directly under such departments" refers to the enterprises and public institutions that have direct budgetary payment and appropriation relationship with the Ministry of Finance.

Article 4 The "departments at the corresponding level" as mentioned in the third paragraph of Article 5 of the Budget Law refers to the local state organs, political party organizations, and social organizations that have directly budgetary payment and appropriation relationship with the department of public finance of the government at the said level; the "entities directly under such departments" as mentioned refers to the enterprises and public institutions that have directly budgetary payment and appropriation relationship with the department of public finance of the government at the said level.

Article 5 The budget of a department consists of the budgets of the entities affiliated to that department. The budget of official expenses of the department shall be included in the budget of that department.

Article 6 The "system of tax division between the central and local governments" as mentioned in Article 8 of the Budget Law refers to the financial management system in which the scope of expenditures of the central and local governments is determined on the basis of the division of responsibility between the said governments, and the budgetary revenues of the central and local governments are classified on the basis of tax types.
The concrete contents and implementation measures of the system of tax division between the central and local governments shall be in conformity with the relevant provisions of the State Council.

Article 7 A local government at the county level or above shall determine the financial management system with respect to the government at lower levels in accordance with the principle of the system of tax division between the central and local governments and the relevant provisions of the governments at higher levels.

Article 8 The budgetary revenues and expenditures take Renminbi yuan as the calculating unit. Where the budgetary revenues and expenditures are collected and paid in foreign currencies, such currencies shall be converted to Renminbi according to the basic exchange rate of Renminbi promulgated by the People’s Bank of China on the day of the collection or payment.

Chapter 2 Scope of Budgetary Revenues and Expenditures

Article 9 The "proceeds from the State-owned assets that should be turned in pursuant to the relevant regulations" as mentioned in the second paragraph of Article 19 of the Budget Law refers to the part of the proceeds that are derived by the departments and entities from possessing, using, and disposing of according to law the domestic and overseas state-owned assets and that shall be turned in as budgetary revenues pursuant to the relevant provisions of the state.
The "proceeds derived from special items" as mentioned in the second paragraph of Article 19 of the Budget Law refers to the revenues that are, according to special needs, established, collected, included in the budget management, and used for special purposes upon approval of the State Council or of the Ministry of Finance which is authorized by the State Council.

Article 10 The "expenditures for economic construction" as mentioned in the third paragraph of Article 19 of the Budget Law refers to the expenditures that are appropriated for infrastructure investment, for supporting the enterprises’ exploration of potential and reform, as enterprise working capital, as interest subsidies for loans for production, as special construction fund, for supporting agricultural production, and for other economic construction.
The "expenditures for the development of undertakings" as mentioned in the third paragraph of Article 19 of the Budget Law refers to the expenditures that are used in the undertakings of education, science, culture, public health, sports, industry, transportation, commerce, agriculture, forestry, environment protection, irrigation works, and weather, etc., concretely including the expenditures for infrastructure of public welfare, purchase of equipment, personnel, business, and the development of other undertakings.

Article 11 The "central budgetary revenues" as mentioned in the first paragraph of Article 20 of the Budget Law refers to the revenues that are brought into the central budget and that are not shared by the local governments according to the system of tax division between the central and local governments, including revenues at the central level, and revenues turned in by the local governments to the central government.
The "local budgetary revenues" as mentioned in the first paragraph of Article 20 of the Budget Law refers to the revenues that are brought into the local budgets and that are not shared by the central government according to the system of tax division between the central and local governments, including revenues at the local levels and revenues refunded or subsidized to the local governments by the central government.
The "budgetary revenues shared by the central and local governments" as mentioned in the first paragraph of Article 20 of the Budget Law refers to the revenues of the same tax types that are shared by the central and local governments according to certain division standards or proportions pursuant to the system of tax division between the central and local governments.

Article 12 The "central budgetary expenditures" as mentioned in the second paragraph of Article 20 of the Budget Law refers to the expenditures that are borne by the central government and included in the central budget pursuant to the system of tax division between the central and local governments, including the expenditures at the central level and the expenditures for refunding or subsidizing the local government.
The "local budgetary expenditures" as mentioned in the second paragraph of Article 20 of the Budget Law refers to the expenditures that are borne by the local governments and included in the local budgets pursuant to the system of tax division between the central and local governments, including the expenditures at the corresponding local levels and the expenditures turned in to the central government by the local governments pursuant to the provisions.

Article 13 The classification of revenue and expenditure items, and the specific measures for turning in, refunding, or subsidizing between the local budgets at two levels next to each other in hierarchical subordination shall be determined by the local government at the higher level, and shall be submitted to the standing committee of the people’s congress at the corresponding level for record.

Article 14 The special funds established upon approval of the State Council shall be subject to budget management; those not included in the budget management shall be brought there into step by step.

Chapter 3 Budget Making

Article 15 The "draft budgets" as mentioned in Article 24 of the Budget Law refers to the budgetary revenue and expenditure plans that are made by the governments, departments, and entities at various levels and that have not been examined and approved according to statutory procedures.

Article 16 Basis for the making of draft annual budgets by the governments at various levels:
1) Laws and regulations;
2) Plans on national economy and social development, middle- and long-term financial plans, and the relevant fiscal and economic policies;
3) The scope of budgetary revenues and expenditures determined according to the budget management authority and financial management system of the governments at the corresponding levels;
4) Execution of budget in the previous year and the factors of change to the budgetary revenues and expenditures in this year;
5) Directions and requirements of the governments at higher levels on the making of draft budget of this year.

Article 17 Basis for the making of draft budgets by the departments and entities:
1) Laws and regulations;
2) Directions and requirements of the governments at the corresponding levels, and arrangements of the departments of public finance of the governments at the corresponding levels;
3) Duties, tasks, and undertaking development plans of the departments and entities;
4) Personnel establishment and quota standards of the departments and entities;
5) Execution of budgets in the previous year and the factors of change to the budgetary revenues and expenditures in this year of the departments and entities.

Article 18 Contents of the central budget:
1) Budgetary revenues and expenditures at the central level;
2) Residual funds of the previous year to be used in the current year;
3) Expenditures for refunding or subsidizing the local governments;
4) Revenues turned in by the local governments.
The domestic and foreign debts incurred in this year by the central government and the amounts of repayment of principal and interest shall be separately listed in the central budget.

Article 19 Contents of the budgets of local governments:
1) Budgetary revenues and expenditures at the corresponding levels;
2) Residual funds of the previous year to be used in the current year;
3) Revenues refunded or subsidized by the governments at higher levels;
4) Expenditures for refunding or subsidizing the governments at lower levels;
5) Expenditures turned in to the governments at higher levels;
6) Revenues turned in by the governments at lower levels.

Article 20 The budgets of the local governments at various levels shall be made on the basis of the dual budget system, and be divided into the government public budget, the state-owned assets operation budget, the social security budget, and other budgets.
The making methods and implementing measures for dual budgets shall be provided by the State Council separately.

Article 21 In the budgets of the governments at various levels, the proportion of the reserve funds set up shall be determined by the governments at the corresponding levels within the range specified in Article 32 of the Budget Law.

Article 22 The "budgetary circulating funds" as mentioned in Article 33 of the Budgetary Law refers to the circulating funds set up by the governments at various levels in order to adjust the seasonally balance within a budgetary year and to guarantee timely use of the funds. The budgetary circulating funds of the governments at various levels shall be set up and supplemented with the budget balance of the governments at the corresponding levels, and the proportion shall gradually reach 4% of the total amount of budgetary expenditures of the governments at the corresponding levels.

Article 23 The balance of special funds of the previous year of the governments at various levels shall be used in the next year for the previous year's carry-over projects; the net balance of the previous year shall be used to supplement the budget circulating fund and the budgetary expenditures needed in the next year.

Article 24 The State Council shall, prior to November 10 of each year, distribute the directions on the making of draft budgets of the next year to the governments of the provinces, autonomous regions, municipalities directly under the Central Government, and the central departments, and present the principles and requirements on the making of draft budgets.
The Ministry of Finance shall, according to the directions of the State Council on the making of draft budgets of the next year, arrange for the specific matters concerning the making of draft budgets, specify the items of budgetary revenues and expenditures, the statement formats, the making methods, and shall work out the financial revenue and expenditure plan.

Article 25 The central departments shall, according to the directions of the State Council and the arrangements of the Ministry of Finance, and in light of the specific situations of their respective departments, present the requirements on the making of their own draft budgets and require their respective affiliated entities to make the draft budgets.
The central departments shall assume the examination of the draft budgets of their respective affiliated entities, and shall gather those drafts to make their own draft budgets, which shall be submitted to the Ministry of Finance for examination prior to December 10 of each year.

Article 26 The governments of the provinces, autonomous regions, and municipalities directly under the Central Government shall present the requirements on the making of draft budgets within their respective administrative areas according to the directions of the State Council and the arrangements of the Ministry of Finance, and in light of the specific situations of their respective areas.

Article 27 The departments of public finance of the local governments at the county level and above shall examine the draft budgets of the departments at the corresponding levels, make the draft budgets of the governments at the corresponding levels, and compile the general draft budgets at the corresponding levels, which shall be submitted to the governments at the next higher levels within the prescribed time limit.
The general draft budgets compiled by the departments of public finance of the governments of the provinces, autonomous regions, and municipalities directly under the Central Government shall be submitted to the Ministry of Finance prior to January 10 of the next year.

Article 28 The Ministry of Finance shall examine the draft budgets of the central departments and make the central draft budget; and shall gather the local draft budgets and compile the central and local draft budgets.

Article 29 The departments of public finance of the governments at the county level and above shall, in examining the draft budgets of the departments at the corresponding levels, correct any in conformity of the draft budgets with the requirements on the making of budgets; and shall, in compiling the general budgets at the corresponding levels, report any inconformity of the draft budgets of the governments at lower levels with the requirements of the State Council and the governments at the corresponding levels on budget making, and the governments at the corresponding levels shall correct such inconformity.

Article 30 The central draft budget shall become the central budget of the current year after being approved by the National People’s Congress. The Ministry of Finance shall give written official replies regarding the budgets of the central departments within 30 days from the day on which the National People’s Congress approves the central budget. The central departments shall give written official replies regarding the budgets of their respective affiliate entities within 15 days on which the Ministry of Finance approves their respective budgets.

Article 31 The draft budgets of the local governments at various levels shall be come the budgets of the governments at the corresponding levels after being approved by the people’s congress at the corresponding levels. The departments of public finance of the local governments at the county level and above shall give official written replies regarding the budgets of the departments at the corresponding levels within 30 days from the day on which the people’s congresses at the corresponding levels approve the government budgets. The local departments shall give written official replies regarding the budgets of their respective affiliated entities within 15 days from the day on which the departments of pubic finance at the corresponding levels approve their respective department budgets.

Article 32 The budgets approved pursuant to Articles 30 and 31 of the present Regulations shall be the department budgets and entity budgets of the current year.

Chapter 4 Budget Execution

Article 33 The government departments of public finance shall assume the concrete execution of the budgets, and their major tasks are:
1) Studying the measures for implementing fiscal and taxation policies, and thus supporting the healthy development of economy and society;
2) Formulating the systems and methods of collecting budgetary revenues and managing budgetary expenditures;
3) Urging the departments collecting and the entities paying budgetary revenues to complete their budgetary revenue tasks;
4) Rationally appropriating and paying budgetary funds according to the annual expenditure budget and the quarterly fund use plan, supervising and inspecting the departments and entities to well manage and use budgetary funds, and thus reducing expenditures and enhancing efficiency;
5) Directing and supervising the departments and entities to establish and perfect financial systems and accounting systems, and to use budgetary funds pursuant to the provisions;
6) Compiling and gathering the data of budget execution of different periods, analyzing budget execution, regularly reporting the budget execution situations to the governments at the corresponding levels and the departments of public finance of the governments at the next higher levels, and proposing suggestions on the increase of revenues and reduction of expenditures;
7) Coordinating the work of the departments collecting budgetary revenues, the treasuries, and other relevant departments.

Article 34 The "amount of the budgetary expenditures in the corresponding period of the previous year" as mentioned in Article 44 of the Budgetary Law refers to the necessary amount expensed for personnel and business for the normal function of the departments and entities as arranged in the budgets in the corresponding period of the previous year.

Article 35 The departments collecting budgetary revenues at various levels, such as the departments of public finance, taxation, and customs, etc., must actively collect the budgetary revenues pursuant to the laws, administrative regulations, and the relevant provisions of the Ministry of Finance, and turn in the budgetary revenues to the central treasury and local treasuries in good time pursuant to the financial management systems; no budgetary revenues may be deposited in any transitional accounts other than the treasuries without approval of the Ministry of Finance.
The reduction, exemption and suspension of any budgetary revenues must comply with the laws, administrative regulations, and the relevant provisions of the Ministry of Finance. No entity or individual may decide to reduce, exempt, or suspend the collectable budgetary revenues without authorization.

Article 36 Any department or entity with the task of turning in budgetary revenues must, pursuant to the relevant laws, administrative regulations, and the relevant provisions of the Ministry of Finance, turn in the budgetary revenues that should be turned in to the treasuries according to the budgetary levels, budgetary items, and the methods and time limits for turning in, and may not withhold, occupy, embezzle, or default on any such funds.

Article 37 The government departments of public finance shall strengthen the management of budgetary appropriations, and shall observe the following principles:
1) Appropriating the funds according to the budgets, that is, the departments shall appropriate the funds according to the approved annual budgets and fund use plans, and may not appropriate any fund that has not been specified in the budget or fund use plan, or that exceeds the amount specified in the budget or plan, and may not change the purposes of use of the funds without authorization;
2) Appropriate the funds pursuant to the prescribed budgetary levels and procedures, that is the departments shall, at the applications of the entities to use the funds, appropriate the funds on time according to the budgetary levels and approved fund use plans of such entities, and may not handle the budgetary appropriation by exceeding the levels;
3) Appropriation the funds pursuant to the schedules, that is the departments shall appropriate the funds according to the actual schedules of fund use and the status of the treasury fund.

Article 38 The governments, departments, and entities at various levels shall strengthen the management of budgetary expenditures, strictly execute the budgetary and financial systems, and may not expand the scope of expenditures or raise the standards of expenditures; shall use the funds in strict accordance with the purposes specified in the budgets; shall establish and perfect the financial systems and accounting systems, and assess, supervise, and increase the effects of fund use pursuant to the standards.

Article 39 The Ministry of Finance shall set forth the financial and accounting systems related to budget execution. The departments and entities shall strengthen the accounting management of the budgetary revenues and expenditures pursuant to the requirements of the government departments of public finance.

Article 40 Treasuries are the special bodies accepting, classifying, retaining, and appropriating the budgetary revenues. Treasuries are divided into the central treasuries and the local treasuries.
The business of the central treasuries is managed by the People’s Bank of China. With respect to the regions where there are no branches of the People’s Bank of China, the business shall be entrusted to the relevant banks after the People’s Bank of China consults with the Ministry of Finance.
The business of the local treasuries shall be managed by the branches of the People’s Bank of China. With respect to the regions where there are no branches of the People’s Bank of China, the business shall be entrusted to the relevant banks after the branches of the People’s Bank of China at the higher levels consults with the departments of public finance of the relevant local governments.
The townships, minority ethnic group townships or towns where conditions permit shall establish treasuries. The specific conditions and standards shall be determined by the departments of public finance of the governments of the provinces, autonomous regions, and municipalities directly under the Central Government.

Article 41 The business of the central treasuries shall be subject to the direction and supervision of the Ministry of Finance, and be conducted in a manner responsible to the central finance.
The business of the local treasuries shall be subject to the direction and supervision of the departments of public finance of the governments at the corresponding levels, and be conducted in a manner responsible to the local finance.
The business rules for local treasuries set forth by the provinces, autonomous regions, and municipalities directly under the Central Government shall be reported to the Ministry of Finance and the People’s Bank of China for record.

Article 42 The treasuries at various levels shall, pursuant to the laws, administrative regulations, and the relevant provisions of the Ministry of Finance and the People’s Bank of China, strengthen the management of treasury business, and handle the accepting, classifying, and retaining of the budgetary revenues, and the appropriation of budgetary expenditures in a timely and accurate manner.
The treasuries at various levels and the relevant banks must abide by the provisions of the state on the turning in of budgetary revenues to the treasuries, and may not default on or occupy the budgetary revenues and treasury funds that should be turned in to the treasuries.

Article 43 The treasuries at various levels must appropriate the funds on the strength of the certificates of appropriation issued by the departments of public finance of the governments at the corresponding levels on the day when such certificates are issued, and shall, in good time, transfer the money to the deposit accounts of the entities to use the fund.

Article 44 The "disposing in any other forms of the funds already put in the treasuries" as mentioned in the fourth paragraph of Article 48 of the Budget Law refers to that the departments, entities or individuals, without consent of the departments of public finance of the governments at the corresponding levels, appropriate, circulate, freeze, withhold, or refund the money that have been turned into the treasuries.

Article 45 The methods of refunding from the treasuries the central budgetary revenues and the budgetary revenues shared by the central and local governments shall be set forth by the Ministry of Finance. The methods of refunding from the treasuries the local budgetary revenues shall be set forth by the departments of public finance of the provinces, autonomous regions, and municipalities directly under the Central Government.
The power to examine and approve the refund of the budgetary revenues at various levels from the treasuries shall belong to the departments of public finance of the governments at the corresponding levels. The refund of the central budgetary revenues and the budgetary revenues shared by the central and local governments shall be subject to the approval of the Ministry of Finance or the agencies authorized thereby. The refund of local budgetary revenues from the treasuries shall be subject to the approval of the departments of public finance of the governments at the corresponding levels or the agencies authorized thereby. The specific treasury refund procedures shall comply with the relevant provisions of the Ministry of Finance.
The budgetary revenues refunded from the treasuries shall be directly returned to the applicant entities or individuals, and be used for the purposes specified by the state. No department, entity, or individual may withhold or embezzle the treasury refund.

Article 46 The governments at various levels shall strengthen the management and supervision of the treasuries at the corresponding levels, and the departments of public finance of the governments at various levels shall coordinate the work of the departments collecting budgetary revenues and the treasuries at the corresponding levels.

Article 47 Where the governments at various levels are to make any decisions or provide for any administrative measures, pursuant to their respective statutory authorities, that involve reduction of revenues or increase of expenditures, they shall do so before the budgets are approved and make the corresponding arrangements in the budgets. No new policies and measures concerning the reduction of revenues or increase of expenditures shall be formulated in the execution of the budgets as a general principle; where it is necessary to formulate such policies or measures, corresponding measures of increase of revenues and reduction of expenditures shall be employed.

Article 48 Where any regulations laid down by the departments under the State Council involve the reduction or exemption of payable budgetary revenues, the establishment or change of any charging items, the confiscation of property and money, the standards and scope of enterprise costs and expenses, the disposals of state-owned assets and the distribution of the proceeds derived from such disposals, and the standards of accounting and administrative expenses, such regulations must comply with the unified provisions of the state.

Article 49 The regulations and administrative measures laid down by the local governments pursuant to their statutory authorities may not involve the reduction or exemption of the central budgetary revenues, and the budgetary revenues shared by the central and local governments, and may not affect the collection of the above mentioned two kinds of revenues; in the event of any regulations or administrative measures conflict with the provisions, the relevant departments collecting budgetary revenues shall have the right to refuse to execute such regulations or administrative measures, and shall report to the departments collecting budgetary revenues at the higher levels and to the Ministry of Finance.

Article 50 The governments at various levels shall strengthen the leadership over budget work, regularly listen to the reports of the departments of public finance concerning budget execution, and study and resolve the problems arising in budget execution.

Article 51 The government departments of public finance shall have the right to supervise and inspect the budget execution of the departments at the corresponding levels and the entities affiliated thereto, and assess the status and effects of the budgetary revenues and expenditures.
The government departments of public finance shall have the right to supervise and inspect the collection of budgetary revenues of the collecting departments at the corresponding levels, and if any collecting departments reduce, exempt, suspend, or refund the budgetary revenues without authorization, the departments of public finance shall order them to correct such acts.

Article 52 The government departments of public finance shall report to the governments at the corresponding levels the budget execution every month, and the specific contents and methods of the report shall be provided for by the said governments.

Article 53 The departments of public finance of the governments of the provinces, autonomous regions, and municipalities directly under the Central Government shall report to the Ministry of Finance the budget execution within their respective administrative areas according to the following time limits and methods:
1) Ten-days budget reports shall be made according to the contents provided for by the Ministry of Finance, and be submitted to the Ministry of Finance within 3 days after the end of each ten days.
2) Monthly budget report shall be made according to the contents provided for by the Ministry of Finance, and be submitted to the Ministry of Finance within 5 days after the end each month.
3) The written explanations of monthly budget execution shall be submitted to the Ministry of Finance within 10 days from the end of each month; and the full analysis of the quarterly budget execution shall be submitted to the Ministry of Finance within 15 days after the end of each quarter.
4) The making of the annual reports, namely the annual final accounts, shall comply with the relevant provisions of the Budget Law and the present provisions.
The contents and the time limits for submission of the reports on budget execution by the departments of public finance of the governments of the cities divided into districts, the autonomous prefectures, and the governments at the county level, and the governments of the townships, minority ethnic group townships, and towns, to the departments of public finance of the governments at the next higher levels shall be provided for by the said governments at the next higher levels.

Article 54 The departments of public finance, taxation, and customs at various levels that collect budgetary revenues shall, pursuant to the time limits and requirements provided for by the departments of public finance, submit the execution information of the relevant plans on budgetary revenues, attached with explanations, to the departments of public finance and the departments in charge at higher levels every month.

Article 55 The central treasuries and the local treasuries shall, pursuant to the relevant provisions, submit to the departments of public finance the daily, quarterly, monthly, and annual reports on the acceptance and retaining of budgetary revenues, and the appropriation of treasury funds.

Article 56 The government departments of public finance, the departments collecting budgetary revenues, and the treasuries shall establish and perfect the system of check of budgetary revenues between them, check the acceptance of budgetary revenues and the appropriation of treasury funds in the budget execution on a monthly and yearly basis, and thus guarantee the collection of the budgetary revenues and the accuracy of the amount of the treasury funds.

Article 57 All departments shall, pursuant to the relevant laws, administrative regulations, and the relevant provisions of the state, supervise and inspect the budget execution of the entities affiliated to them.

Article 58 All departments shall, pursuant to the time limits provided for by the departments of public finance of the governments at the corresponding levels, submit to the said departments of public finance the statements and written explanations concerning the budgetary revenues and expenditures, and the turning in of fund by the enterprises, etc.

Article 59 The government departments of public finance shall strictly examine the matters that need to increase budgetary expenditures or to reduce budgetary revenues; and the matters that need to use the reserve funds must be subject to the approval of the governments at the corresponding levels.

Chapter 5 Budget Adjustment

Article 60 The schemes of budget adjustment shall be made by the government departments of public finance. The schemes on budget adjustment shall include the reasons, items, amount, and measures of the adjustment, and the relevant explanations, and those schemes shall be, after being examined by the governments at the corresponding levels, submitted to the standing committees of the people’s congresses at the corresponding levels for examination and approval.

Article 61 The local governments that accept refunds or subsidies from the governments at the higher levels shall use the funds according to the purposes provided for by the governments at higher levels, and may not change the purposes of use without authorization.
Where the relevant government departments appropriate special funds to the relevant government departments at lower levels from the funds arranged in their own budgets, such appropriation must be subject to the consent of the departments of public finance of the governments at the corresponding levels, and the said departments of public finance shall process the appropriation formalities.

Article 62 The budgetary expenditures of the departments and entities must be in conformity with the budgetary items and amounts approved by the departments of public finance of the governments at the corresponding levels, and may not be embezzled; where any adjustments are necessary, the consent of the departments of public finance of the governments at the corresponding levels must be obtained.

Article 63 Where any enterprise or public institution, after the annual budget has been determined, changes its subordinate relationship and thus causes the change of budget level and relationship, budget transfer shall be handled at the same time as the financial relationship is changed.

Chapter 6 Final Accounting

Article 64 The term "draft final accounts" as mentioned in Article 59 of the Budget Law refers to the results of annual budget execution that are made by the governments, departments, and entities at various levels and that have not been examined and approved according to statutory procedures.

Article 65 The Ministry of Finance shall, at the fourth quarter of each year, set forth the principles, requirements, methods, and time limits of submission of the draft final accounts, and formulate and distribute the statement formats of the final accounts of the central departments, the local final accounts, and other relevant final accounts.
The departments of public finance of the local governments at the county level and above shall, according to the arrangements of the Ministry of Finance, set forth the principles, requirements, methods, and time limits of submission of the draft final accounts of the government departments at the corresponding levels, and of the governments at lower levels.

Article 66 The departments of public finance of the local governments shall, according to the arrangements of the departments of public finance of the governments at higher levels, fix the specific methods of making the draft final accounts of their respective administrative areas and those of the departments at the corresponding levels. The departments shall, according to the arrangements of the departments of public finance of the governments at the corresponding levels, fix the specific methods of making the final accounts of their respective affiliated entities.

Article 67 The government departments of public finance, the other departments, and the entities shall, at the end of each budgetary year, sort out and verify the figures of budgetary revenues, expenditures, and transactions, and carefully check the figures of final accounts. The revenues and expenditures of the current year may not be accounted as the revenues and expenditures of the next year, or vice versa; the budgetary revenues and expenditures may not be accounted as extra-budgetary, neither may the transferred as budgetary without authorization.
The figures of the final accounts shall be based on the verified accounting figures that have been gathered by the basic-level entities, and may not be substituted by estimated figures or be falsified.

Article 68 The entities shall, according to the arrangements of the departments in charge of them, carefully make their respective draft final accounts, and submit them within the prescribed time limit.
The departments shall, on the basis of examining and gathering the draft final accounts of the their respective entities and combining the figures of revenues and expenditures of their own final accounts, make the draft final accounts of their respective departments, which shall be accompanied by detailed explanations of the draft final accounts, and after being signed by the administrative leaders of the departments, be submitted to the departments of public finance of the governments at the corresponding levels within the prescribed time limit.

Article 69 The departments collecting budgetary revenues at various levels shall, according to the requirements of the Ministry of Finance, make and submit the annual revenue reports and the relevant materials in good time.

Article 70 The Ministry of Finance shall, on the basis of gathering the draft final accounts of the central departments, make the draft central final accounts, which shall be, after being submitted to the State Council for examination and determination, submitted by the State Council to the Standing Committee of the National People’s Congress for examination and approval.
The departments of public finance of the local governments at the county level and above shall, on the basis of gathering the draft final accounts of other departments at the corresponding levels, make the draft final accounts at the corresponding levels, which shall be, after being examined and determined by the governments at the corresponding levels, submitted by the said governments to the standing committees of the people’s congresses at the corresponding levels for examination and approval.
The governments of the townships, minority ethnic group townships, and towns shall, on the basis of the results of annual budget execution supplied by the departments of public finance, make the draft final accounts at the corresponding levels, and submit them to the people’s congresses at the corresponding levels for examination and approval.

Article 71 The matters that, pursuant to the provisions, need to be liquidated between the departments of public finance at higher and lower levels during annual budget execution shall be settled in the final accounting.

Article 72 After the draft final accounts of the governments at the county level and above have been approved by the standing committees of the people’s congresses at the corresponding levels, the departments of public finance of the governments at the corresponding levels shall, within 20 days from the day of approval, give written official replies to the departments at the corresponding levels regarding their final accounts. The departments shall, within 15 days from receiving the official replies from the departments of public finance of the governments at the corresponding levels regarding their final accounts, give written official replies to their respective affiliated entities regarding the final accounts of those entities.

Article 73 The local governments at the county level and above shall, within 30 days from the day on which the standing committees of the people’s congresses at the corresponding levels approve their respective final accounts, gather the government final accounts at the corresponding levels and the final accounts submitted by the governments at the next lower levels for record, and submit them to the governments at the next higher levels for record.

Chapter 7 Supervision

Article 74 The governments at the county level and above shall subject themselves to the supervision of the people’s congresses at the corresponding levels and the standing committees thereof over the execution of the budgets and the final accounts, and the people’s governments at the township level shall subject themselves to the supervision of the people’s congresses at the corresponding levels over the execution of the budgets and the final accounts; the governments shall report budget execution according to the requirements of the people’s congresses at the corresponding levels or the standing committees thereof; shall carefully study, deal with, and make timely replies to the suggestions, criticism, and opinions regarding the improvement of budget management brought forward by the deputies to the people’s congresses at the corresponding levels, or by the members of the standing committees.

Article 75 The governments at various levels shall strengthen the supervision over the budget execution of the governments at lower levels, and shall stop and correct according to law the acts of the lower governments that violate the laws, administrative regulations, and the guidelines and policies of the state; and shall take timely measures dealing with the problems arising in the execution of the budgets at the corresponding levels.
The governments at lower levels shall subject themselves to the supervision of the governments at higher levels over budget execution; shall provide materials in good time according to the requirements of the governments at high levels, faithfully report the situations, and may not hide the facts or make falsified reports; shall strictly enforce the relevant decisions made by the governments at higher levels, and report the results of enforcement in good time.

Article 76 The departments and the entities affiliated thereto shall subject themselves to the supervision and inspection of the departments of public finance at the corresponding levels over their budgets; shall faithfully provide the relevant budget materials according to the requirements of the departments of public finance at the corresponding levels; and shall execute the opinions of those inspecting departments.

Article 77 The auditing bodies at various levels shall, in accordance with the Auditing Law of the People’s Republic of China and the relevant laws and administrative regulations, carry out auditing supervision over the execution and final accounting of the budgets of the departments at the corresponding levels and of the governments at lower levels.

Chapter 8 Supplementary Provisions

Article 78 The "treasury funds are arbitrarily drawn upon or the funds already put in the treasury are appropriated by other means" as mentioned in Article 74 of the Budget Law refers to that:
1) The departments collecting budgetary revenues refund money from the treasuries without the consent of the government departments of public finance or the agencies authorized thereby;
2) The departments collecting budgetary revenues deposit the collected taxes and other budgetary revenues in any transitional accounts, fund accounts, or any accounts other than the treasuries;
3) The banks managing treasury business draw upon the treasury fund or refund money from the treasuries without consent of the relevant government departments of public finance;
4) The banks managing treasury business embezzle the treasury funds for other purposes in violation of the provisions;
5) The budgetary revenues are not accepted or retained in good time, or the treasury funds are delayed in appropriating or are withheld;
6) The budgetary appropriations are not transferred in good time into the accounts of the entities using the money, or the budgetary funds appropriated by the government departments of public finance are embezzled.

Article 79 The present Regulation shall take effect as of the day of promulgation.

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