Page 49 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

the concept and approach of prioritizing performance throughout the process of
budget management. We will give priority to carrying out the major decisions and
plans of the Party Central Committee and the State Council in managing budget

performance, and conduct more rigorous performance evaluations prior to the
introduction of major policies and projects, so as to make fiscal policies more

practicable and public finance more sustainable. We will tighten the management
of performance targets, and make the framework for performance indicators more
systematic, precise, and practical. We will improve the performance-based budget

evaluation system for major policies and projects, and make full use of evaluation
results by regarding them as important reference points when refining policies,

formulating budgets, and enhancing management. We will further guide and
regulate third-party participation in performance-based budgetary management.

We will increase the transparency of performance-related information and
voluntarily accept public oversight in this regard.

4. Supporting primary-level governments in ensuring the three priorities
We will increase transfer payments from the central government to local
governments, make good use of the mechanism for the direct allocation of

government funds, and promote the unified management of fiscal resources at the
provincial level to see more funds flowing into primary-level governments. We

will guide localities in boosting monitoring of fiscal operations in county and
district governments to evaluate their fiscal operations more accurately and

comprehensively, seeing that dynamic monitoring and category-based
management are exercised and targeted measures are put in place. We will

leverage the role of local supervision bureaus under the Ministry of Finance to
promptly discover and defuse hidden risks. We will refine the integrated system
for budget management and strengthen technological support to guarantee full

funding for ensuring the three priorities. We will see that local governments fulfill
their responsibilities for ensuring the three priorities, and county-level

governments in particular, assume primary responsibility. For a few localities
confronted with the risk of failing to ensure the three priorities, we will urge local

governments to swiftly respond to and appropriately address and defuse such
risks.

48