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the Mandate of the Ministry of Finance


1. Formulating and implementing strategies, policies and guidelines, medium-and-long-term development plan and reform programs of public finance and taxation; participating in macroeconomic policy making; providing policy advice on macroeconomic regulation and balanced allocation of public fund with fiscal instruments; formulating and implementing policies regarding income distribution between the central and local governments and between the state and enterprises.


2. Drafting laws and regulations on public finance and financial and accounting management; laying down and implementing regulations and rules on fiscal, financial and accounting management; organizing negotiations concerning external finance and debts and signing related agreements/accords.


3. Preparing the draft annual budget of the central government and its final accounts; organizing budget implementation; presenting reports on the central and local budgets and the implementation to the National People’s Congress and reports on the final accounts to the Standing Committee of the National People’s Congress on behalf of the State Council; administering the public revenue, the extra-budgetary fund and the special accounts of the central government; administering other governmental funds.


4. Proposing tax legislation plans; reviewing proposals on tax legislation and tax collection regulations with the State Tax Administration before reporting to the State Council; formulating tax collection plans according to the budget; proposing adjustments on tax items, tax rates and tax incentives, including those temporary and special tax incentives that have a major bearing on the central finance; participating in foreign-related tax negotiations and international tariff negotiations; signing foreign-related tax agreements/accords; formulating model tax agreement and convention; performing the secretariat functions for the Tariff/Tax Regulation Committee of the State Council.


5. Administering the central expenditures; formulating and implementing government procurement policies; managing the budgetary non-trade-related foreign exchange of government agencies, public institutions and social organizations as well as budgetary balance of payment; promulgating national uniform standards and policies of some expenditures; formulating and implementing “Accounting Regulation for Public Institutions” and “Accounting Regulation for Government Agencies”; formulating financial regulations on capital construction.


6. Formulating and implementing the policy of distribution between the state and enterprises, managing expenditures from the central coffers to support enterprises; promulgating and implementing “General Principles of Enterprise Accounting”; supervising financial management of the enterprises directly affiliated to the central government and managing the return of state-owned capital; consolidating and analyzing the final annual financial accounts of national enterprises.


7. Administering and supervising the central government expenditures for economic development, the appropriation for central government financed projects, and funds for technological innovation and new product testing; managing central government funds for comprehensive development of agriculture; formulating and supervising implementation of “General Principles on Enterprise Accounting”.


8. Managing the social security expenditures from the central government; formulating the accounting management rules on social security funds; monitoring the utilization of the social security funds.


9. Formulating and implementing policies, rules and regulations on managing government’s domestic debts; preparing plans for treasury bond issuance; formulating policies, rules and regulations on managing government’s external debts; undertaking external negotiations/consultations on loans from foreign governments, World Bank, Asian Development Bank and Japan Bank for International Cooperation; participating in international financial organizations on behalf of the Chinese Government.


10. Formulating and implementing accounting regulations and “Enterprise Accounting Standards”; formulating and monitoring the implementation of the government’s overall budget and accounting regulations governing the government agencies, public institutions and industries; guiding and monitoring the business of certified public accountants and accounting firms; guiding and regulating the auditing business; reviewing and approving the establishment of representative offices and branches of foreign accounting firms in China.


11. Monitoring the implementation of fiscal and tax policies, laws and regulations; identifying the main problems in the management of fiscal revenues and expenditures; proposing policy suggestions on strengthening fiscal management; administering resident offices of Fiscal Supervision Commissioners.


12. Formulating fiscal research and education plans; organizing fiscal training; promoting fiscal information dissemination.


13. Undertaking other assignments of the State Council.