History
The Ministry of Finance of the People's Republic of China was formerly known as the Ministry of Finance of the Central People's Government,which was established on October 1,1949. [1] In September 1954,the First Session of the First National People's Congress was held in Beijing,at which the Constitution of the People's Republic of China and the Organic Law of the State Council were adopted. The former Ministry of Finance of the Central People's Government was transformed into the Ministry of Finance of the People's Republic of China,which took over the related work and became a constituent department of the State Council. [2]
On 1 July 1967,during the Cultural Revolution,the Central Committee of the Chinese Communist Party,the State Council and the Central Military Commission decided to implement military rule over the ministry;the Director of the Military Control Commission Yin Chengzhen became the head of the ministry. [3] In 1969,the State Council approved the consolidation of PBC's headquarters as a bureau within the Ministry of Finance. [4] : 38 Local PBC branches were merged into local government finance departments. [4] : 38 The Military Control Commission was replaced with a Revolutionary Committee on 22 June 1970.
The ministry was reorganized and restored its ministerial system in January 1975. [5] In 1978,the PBC was separated from the Ministry of Finance. [6] : 21
The Ministry held China's first bond auction in 1996. [6] : 35
In 2009,the Ministry converted its ownership of $200 billion of China Investment Corporation's debt into equity,a result which relieved CIC of interest payments on the special treasury bonds that had initially capitalized it and instead resulted in CIC paying an annual dividend to the Ministry. [4] : 110–111
The Ministry has sought to implement property taxes since the early 2010s,but has been opposed on this issue by the National People's Congress and many local governments. [7] : 60–61 As of at least early 2024,property taxes have been kept off the legislative agenda. [7] : 60–61
The Ministry is among the state entities which contribute to the China Integrated Circuit Industry Investment Fund,which was established in an effort to decrease China's reliance on foreign semiconductor companies. [8] : 274 The fund was established in 2014. [8] : 274
In 2015,the Ministry of Finance allocated 2 billion RMB to establish e-commerce centers in some of the least developed areas of rural China. [9] : 128 This approach has since inspired similar strategies in Egypt,India,and Vietnam. [9] : 128
Role
During the pre-Reform period of centrally planned public finance,capitalization of industrial and infrastructure projects has handled through public expenditure. [6] : 42–43 The State Planning Commission designated projects and the Ministry allocated revenue to them. [6] : 42–43
The main functions of the Ministry is to carry out the following duties of the state: [10]
| Number | Main Function | Description |
|---|
| 1. | Economic and public finance policies | Formulating and implementing strategies,policies and guidelines for economic development,public finance for government revenue sharing between the central and provincial governments. |
| 2. | Administration of public finance and external debt | Draft laws and regulations on public finance,financial,accounting management,external finance and debts. |
| 3. | Annual budget for Central People's Government | Preparing the annual budget of the central government,priority spending,balancing the budget |
| 4. | Revenue and Tax legislation reforms | Proposing tax legislation plans - reviewing proposals on tax legislation and tax revenue regulations. |
| 5. | Central People's Government expendituree | Administering the central expenditures - procurement,expenses |
| 6. | Government Revenue distribution | Formulating and implementing the policy of distribution between the state and government owned enterprises |
| 7. | Economic Development Expenditure | Administering the central government expenditures for economic development,the appropriation for central government financed projects,and funds for technological innovation |
| 8. | Social Security Expenditure | 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. | Domestic government debts | Formulating and implementing policies,rules and regulations on managing government's domestic debts;treasury bond issuance;formulating policies,rules and regulations on managing government's external debts |
| 10. | Accounting Regulations | Formulating and implementing accounting regulations - for government and private corporations and promoting accountability and transparency. |
| 11. | Fiscal and Tax Policies | Monitoring the implementation of fiscal and tax policies - laws and regulations,examining problems with the system and making changes. |
| 12. | Fiscal research and education | Research into fiscal policy and education resources to the wider community. |
| 13. | Other Duties as Directed | Undertaking other assignments of the State Council. |
The Ministry of Finance in involved the foreign aid process through making China's donations to multilateral financial institutions. [6] : 73
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