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Better public finance

(China Daily)
Updated: 2008-05-23 15:03

The decision by the State Council on Wednesday to require central government departments to cut spending by 5 percent this year to put aside the saved funds for quake reconstruction sets a good example for local governments and the general public as well.

The decision called on governments at all levels to reduce the number of meetings, the frequency for the use of public vehicles, and of domestic and overseas business trips in order to save money. Tighter control will be exerted on the procurement of public vehicles and the construction of government office buildings.

To be thrifty and to save for the reconstruction of the quake-devastated areas may be one of the practical ways to show sympathy for the survivors of the quake. People in the disaster-hit areas are badly in need of food, water and other daily necessities. Much more money is still needed to enable the homeless there to return to normal life despite of the rise in donations.

The State Council's decision at this moment has undoubtedly struck the right chord.

The 5 percent cut in their spending by departments directly under the State Council means 65 billion yuan (about $9.29 billion) from its reported budget of 1.3 trillion yuan. If local governments at all levels can cut their spending by that percentage, the total sum of money saved would be huge.

If detailed plans can be made and published on how that percentage of spending will be saved and what measures the central government departments will take to make up for the inconvenience that the cut will cause to their work, the repercussions of the example will be even greater. And it will also be easier for local governments to follow suit.

There have been calls for cutting spending on public vehicles and on cutting meetings even before the earthquake. But never has a reform been earnestly carried out on the mechanism for an efficient use of public vehicles and the reduction of meetings.

This decision, at the time when the misery of earthquake victims has touched the heart of every one, will hopefully push central government departments to make detailed plans for implementing the decision.

There is a need to earnestly implement the State Council's decision not only for the reconstruction of quake-hit areas but also for sustainable development of this country.