Optimize spending structure to improve people’s livelihoods

The central government departments’ budgets for 2021 made public recently show that more than 100 departments have cut spending in keeping with austerity measures.

The budgets of various government departments, particularly for sangong expenses — that is, expenditure on official overseas visits, official vehicles and official hospitality — have been reduced, in some cases substantially.

Altogether 5.187 billion yuan ($790.75 million) has been earmarked for the sangong expenses of central government departments this year, a reduction of 330 million yuan or 6 percent year-on-year. The basis of the cut is a 31.9 percent budgetary slash over last year.

Objectively speaking, it is not possible to cut government operating and sangong expenses drastically. Such spending is often inevitable for the normal functioning of department. For example, a department dealing in international affairs will need to increase its spending on overseas trips.

The operating expenses of government departments and their sangong expenses comprise only a fraction of the country’s fiscal expenditure. If Party and government departments want to practice austerity, that should reflect in the overall budget arrangements.

This year’s budget rightfully shows all government departments have significantly reduced their budgets for non-rigid and non-key projects, as well as their public expenditure. But tightening the budget for various State departments should not be the ultimate goal. Instead, the government should optimize the spending structure to ensure the expenses to improve people’s livelihoods are not cut.

According to this year’s Government Work Report, the government will continue to increase expenditure on employment, education, social security and healthcare in order to improve people’s lives and livelihoods and reduce the budget for State departments in keeping with its people-centric philosophy.

Taxpayers’ money is precious, so the authorities must make expenditure more performance-based, establish a performance-based budget management system that covers all sectors, and ensure that those responsible for misusing money are held accountable.

The authorities’ insistence on tightening spending is not a shortterm measure, but a long-term policy, which should prompt them to help people pursue a better life.