Economy

Markets

Industries

Insights

Reports

Events

Financial reward for local governments that axe staff

By Yu Hongyan (chinadaily.com.cn)
Updated: 2008-09-09 17:42

Governments at the county and township level will get rewards from the central budget for departments or staff streamlining, and for expenditure on priority areas, according to the Ministry of Finance.

A document, published on the ministry's website on Sunday, on financial rewards and subsidies for fiscal difficulties in local governments, says that there would be a lump sum reward for governments at county and township level, with 500,000 yuan ($73,043) for the cancellation or combination of a county or district office in 2007.

A reward of 4,000 yuan will be paid to the township government for cut down one fiscal raised member. And a fine of 500 yuan per person will be imposed on the township government if their increase of staff exceeds the average level in China.

The ministry will assess the priority expenditure in the general budget of local governments, which includes education, medical and health care and issues related to agriculture, forestry and waters.

Rewards will be granted, on the basis of certain calculations and the local fiscal status, to counties with higher portions of expenditure on the priority areas in 2007 compared with 2006, as well as those boasting a portion above the average level nationwide.

The document urges that governments under the provincial level should adjust the fiscal relief procedure in accordance with the current situation in the operation of local finance, and allocate and use the rewards and subsidies properly to enhance their capacity in public serving.

Application materials and data submitted from local governments, and allocation and usage of the rewards and subsidies granted will be specially examined against accounting fraud and misuse. The local governments will see a deduction in rewards or subsidies if misuse is uncovered, or a suspension from the reward and subsidy list in serious circumstances.

The document also mentions rewards from the central budget to counties with a high output in grain or oil.