(Adopted at the Second Session of the Eighth National People's Congress on March 22, 1994 and promulgated by Order No. 21 of the President of the People's Republic of China on March 22, 1994)

Contents

Chapter I General Provisions

Chapter II Functions and Powers for Budget Management

Chapter III Scope of Budgetary Revenues and Expenditures

Chapter IV Budget Compilation

Chapter V Examination and Approval of Budgets

Chapter VI Budget Implementation

Chapter VII Budget Adjustment

Chapter VIII Final Accounts

Chapter IX Supervision

Chapter X Legal Responsibility

Chapter XI Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is formulated in accordance with the Constitution with a view to strengthening the distribution and supervisory function of budget, improving the budget management of the State, intensifying the macroscopic regulation and control of the State, and ensuring the sound development of economy and society.

Article 2 The State shall establish budget at each level of the government, namely, at the five levels: the Central Government; the provinces, autonomous regions and municipalities directly under the Central Government; the cities divided into districts and autonomous prefectures; the counties, autonomous counties, cities not divided into districts, and municipal districts; the townships, nationality townships and towns.

Townships, nationality townships and towns where conditions do not permit the establishment of budget, subject to the determination by the people's governments of the respective provinces, autonomous regions or municipalities directly under the Central Government, may temporarily not establish budget.

Article 3 Budget at various levels shall maintain a balance between revenues and expenditures.

Article 4 The budget of the Central Government (hereinafter simplified as the central budget) consists of the budgets of its different departments (including the units directly under them, similarly hereinafter).

The central budget includes revenues turned over by the local governments to the Central Government and revenues refunded or subsidies granted by the Central Government to the local governments.

Article 5 The local budget consists of the general budgets of the various provinces, autonomous regions and municipalities directly under the Central Government.

A local general budget at any level consists of the budget of the government at the corresponding level (hereinafter simplified as budget at the corresponding level) and the totalized general budget at the next lower level. Where the next lower level has only the budget of the government at the corresponding level, the totalized general budget at the next lower level means the budget of the government at the corresponding level. In the absence of the budget at the next lower level, the general budget means the budget of the government at the corresponding level.

The budget of a local government at any level consists of the budgets of the various departments at the corresponding level (including the units directly under them, similarly hereinafter)

The budget of a local government at any level includes revenues turned over by the governments at lower levels and revenues refunded or subsidies granted by the governments at higher levels.

Article 6 The budget of a department consists of the budgets of the units subordinate to it.

Article 7 The budget of a unit refers to the budget for revenues and expenditures of a State organ, social organization or any other unit which is listed in the budget of a department.

Article 8 The State practises a system of tax division between the Central and local governments.

Article 9 The budget approved by the people's congress at the corresponding level shall not be altered without going through the procedures prescribed by law.

Article 10 A budgetary year begins on January 1 and ends on December 31 according to the Gregorian calendar.

Article 11 The budgetary revenues and expenditures take Renminbi yuan as the calculating unit.

Chapter II Functions and Powers for Budget Management

Article 12 The National People's Congress examines the central and local draft budgets and the reports on the implementation of the central and local budgets, approves the central budget and the report on the implementation of the central budget and alters or annuls inappropriate resolutions made by the Standing Committee of the National People's Congress on budget and final accounts.

The Standing Committee of the National People's Congress supervises the implementation of the central and local budgets, examines and approves the adjustment plan for the central budget, examines and approves the final accounts of the Central Government, annuls administrative rules and regulations, decisions, or orders of the State Council on budget or final accounts, which contravene the Constitution or laws, and annuls local regulations or resolutions made by the people's congresses or their standing committees of the provinces, autonomous regions or municipalities directly under the Central Government on budget or final accounts, which contravene the Constitution, laws or administrative rules and regulations.

Article 13 A local people's congress at or above the county level examines the draft general budget at the corresponding level and the report on the implementation of the general budget, approves the budget and the report on its implementation at the corresponding level, alters or annuls inappropriate resolutions made by the standing committee of the people's congress at the corresponding level on budget or final accounts and annuls inappropriate decisions and orders made by the government at the corresponding level on budget or final accounts.

The standing committee of a local people's congress at or above the county level supervises the implementation of the general budget at the corresponding level, examines and approves the adjustment plan for the budget at the corresponding level, examines and approves the final accounts of the government at the corresponding level (hereinafter simplified as the final accounts at the corresponding level), and annuls inappropriate decisions, orders and resolutions made by the government at the corresponding level or by the people's congress at the next lower level and its standing committee on budget or final accounts.

The people's congress of a township, nationality township or town which has established budget examines and approves the budget at the corresponding level and the report on the implementation of the budget at the corresponding level, supervises the implementation of the budget at the corresponding level, examines and approves the adjustment plan for the budget at the corresponding level, examines and approves the final accounts at the corresponding level, and annuls inappropriate decisions and orders made by the government at the corresponding level on budget or final accounts.

Article 14 The State Council compiles the drafts of the central budget and final accounts, makes report to the National People's Congress on the drafts of central and local budgets, submits for the record to the Standing Committee of the National People's Congress reports on the totaled budgets submitted for the record by the governments of provinces, autonomous regions and municipalities directly under the Central Government, organizes the implementation of the central and local budgets, makes decisions to draw on reserve funds of the central budget, works out the adjustment plan for the central budget, supervises the implementation of the budgets of the departments of the Central Government and of the local governments, alters or annuls inappropriate decisions and orders made by the departments of the Central Government or by the local governments on budgets or final accounts, and makes report to the National People's Congress or its Standing Committee on the implementation of the central and local budgets.

Article 15 A local government at or above the county level compiles the draft budget and draft final accounts at the corresponding level, makes report on the draft general budget at the corresponding level to the people's congress at the corresponding level, submits for the record the totalized general budget submitted by the next lower level to the standing committee of the people's congress at the corresponding level for the record, organizes the implementation of the general budget at the corresponding level, makes decisions to draw on reserve funds of the budget at the corresponding level, works out the adjustment plan for the budget at the corresponding level, supervises the budget implementation by the departments at the corresponding level and by the government at the next lower level, alters or annuls inappropriate decisions and orders made by the departments at the corresponding levels and the government at the next lower level on budget or final accounts, and makes report to the people's congress at the corresponding level or its standing committee on the implementation of the general budget at the corresponding level.

The government of a township, nationality township or town compiles the draft budget and draft final accounts at the corresponding levels, makes report to the people's congress at the corresponding level on the draft budget, organizes the implementation of the budget at the corresponding level, makes decisions to draw on reserve funds of the budget at the corresponding level, works out the adjustment plan for the budget at the corresponding level, and makes report to the people's congress at the corresponding level on the implementation of the budget at the corresponding level.

Article 16 The financial department under the State Council compiles the specific draft of the central budget and draft of the final accounts, practically organizes the implementation of the central and local budgets, puts forward proposals for drawing on reserve funds of the central budget, works out the specific adjustment plan for the central budget, and regularly reports to the State Council on the implementation of the central and local budgets.

The financial department of a local government at any level compiles the specific drafts of budget and final accounts at the corresponding level, practically organizes the implementation of the general budget at the corresponding level, puts forward proposals for drawing on reserve funds of the budget at the corresponding level, works out the specific adjustment plan for the budget at the corresponding level, and regularly reports to the government at the corresponding level and the financial department of the government at the next higher level on the implementation of the general budget at the corresponding level.

Article 17 The various departments compile the drafts of their own budgets and final accounts, organize and supervise the budget implementation by their own departments, and regularly report to the financial departments of the governments at the corresponding levels on their budget implementation.

Article 18 The various units compile the drafts of their own budgets and final accounts, turn over budgetary revenues as prescribed by the State, manage the budgetary expenditures, and accept supervision of the relevant departments of the State.

Chapter III Scope of Budgetary Revenues and Expenditures

Article 19 A budget consists of budgetary revenues and budgetary expenditures.

The budgetary revenues include:

(1) tax receipts;

(2) receipts from the State-owned assets that should be turned over in accordance with relevant regulations;

(3) receipts from special items; and

(4) receipts from other sources.

The budgetary expenditures include:

(1) expenditure for economic construction;

(2) expenditure for the development of undertakings in education, science, culture, public health and physical culture;

(3) the administrative expenditure of the State;

(4) expenditure for national defence;

(5) expenditure for various subsidies; and

(6) other expenditures.

Article 20 The budgetary revenues are divided into the central budgetary revenues, the local budgetary revenues and the budgetary revenues shared by the central and local governments.

The budgetary expenditures are divided into the central budgetary expenditures and the local budgetary expenditures.

Article 21 Specific measures for the division of items for revenue and expenditure between the central budget and the local budget, the turning-over of revenues by the local governments to the Central Government and the refundment of revenues or the grant of subsidies by the Central Government to the local governments shall be prescribed by the State Council and reported to the Standing Committee of the National People's Congress for the record.

Article 22 The budgetary revenues shall be used in a manner of overall consideration and arrangement. The establishment of any fund for a specific purpose, where really necessary, shall be subject to the approval by the State Council.

Article 23 No government at a higher level may allocate, beyond its budget, any budgetary funds of the government at a lower level. No government at a lower level may use or intercept budgetary funds belonging to the government at a higher level.

Chapter IV Budget Compilation

Article 24 The governments, departments and units at various levels shall compile their respective draft budgets within the period of time prescribed by the State Council.

Article 25 The central budget and the budgets of local governments at various levels shall be compiled with reference to the actual implementation of the previous year's budget and to the estimation of the current year's revenues and expenditures.

Article 26 The central budget and the budgets of local governments at various levels shall be compiled according to the dual budget system.

Measures for the compilation of the dual budget system and rules for the implementation thereof shall be formulated by the State Council.

Article 27 The public budget of the Central Government shall not contain deficit.

Partial funds for construction investment indispensable to the central budget may be raised in form of domestic and foreign loans, provided that loans shall be in a rational scale and structure.

The funds needed for the servicing of the debts already raised in the central budget shall be managed in accordance with the provisions of the preceding paragraph.

Article 28 The local budgets at various levels shall be compiled according to the principles of keeping expenditures within the limits of revenues and maintaining a balance between revenues and expenditures, and shall not contain deficit.

The local governments may not issue local government bonds, except as otherwise prescribed by laws or the State Council.

Article 29 The compilation of the budgetary revenues at various levels shall be in keeping with the growth rate of the gross national product.

Revenues which must be listed in the budget in accordance with relevant regulations, may not be concealed or incompletely listed, and the abnormal receipts in the previous year may not be taken as the basis for the compilation of the budgetary revenues.

Article 30 The guiding principle of practising strict economy and building up the country through thrift and hard work shall be followed in compiling the budgetary expenditures at various levels.

The budgetary expenditures at various levels shall be compiled by making overall plans and taking all factors into consideration while securing priorities; and budgetary expenditures for various purposes shall be properly arranged under the precondition that the reasonable requirements of government public expenditures be secured.

Article 31 Necessary funds shall be arranged in the central and relevant local budgets to assist the developing areas such as areas of regional national autonomy, old revolutionary bases and outlying and poverty-stricken areas, in developing undertakings of economy and culture.

Article 32 Reserve funds in government budgets at various levels shall be established at a ratio of 1% to 3% of the budgetary expenditures at the corresponding level for coping with the relief for natural calamities and other unexpected expenditures in the implementation of the current year's budgets.

Article 33 Budgetary circulating funds shall be established in government budgets at various levels as prescribed by the State Council.

Article 34 The balance of the previous year's government budget at any level may be used in the next year for the expenditure of the previous year's carry-over projects; any surplus thereof may be used as a supplement to the budgetary circulating funds; any further surplus may be used as budgetary expenditures essential to the next year.

Article 35 The State Council shall give timely instructions regarding the compilation of the next year's draft budgets. The concrete matters relating to the compilation of draft budgets shall be arranged by the financial department under the State Council.

Article 36 The governments of the provinces, autonomous regions and municipalities directly under the Central Government shall, within the period of time defined by the State Council, submit the general draft budgets at the corresponding levels to the State Council for examination, verification and totalization.

Article 37 The financial department under the State Council shall, one month before the annual session of the National People's Congress, submit the main contents of the draft central budget to the Financial and Economic Committee of the National People's Congress for preliminary examination.

The financial departments under the governments of the provinces, autonomous regions, municipalities directly under the Central Government, cities divided into districts or autonomous prefectures shall, one month before the sessions of the people' congresses at the corresponding levels, submit the main contents of the draft budgets at the corresponding levels for preliminary examination to the relevant special committees of the people's congresses at the corresponding levels, or to the relevant working committees of the standing committees of the people's congresses at the corresponding levels in accordance with the decisions made by the councils of chairmen of the standing committees of the people's congresses at the corresponding levels.

The financial departments under the governments of the counties, autonomous counties, and cities not divided into districts or municipal districts shall, one month before the sessions of the people's congresses at the corresponding levels, submit the main contents of the draft budgets at the corresponding levels for preliminary examination to the standing committees of the people's congresses at the corresponding levels.

Chapter V Examination and Approval of Budgets

Article 38 The State Council shall, when the National People's Congress is in session, make a report to the Congress on the draft central and local budgets.

The local governments at various levels shall, when the people's congresses at the corresponding levels are in session, make reports to the congresses on their respective draft total budgets.

Article 39 The central budget shall be examined and approved by the National People's Congress.

The budgets of the local governments at various levels shall be examined and approved by the people's congresses at the corresponding levels.

Article 40 The government of a township, nationality township or town shall report without delay its budget approved by the people's congress at the corresponding level to the government at the next higher level for the record. A local government at or above the county level shall report without delay its budget approved by the people's congress at the corresponding level and the totalized budget submitted for the record by the government at the next lower level to the government at the next higher level for the record.

A local government at or above the county level shall, after totalizing the budgets submitted for the record by the governments at the next lower level in accordance with the provisions of the preceding paragraph, report the totalized budgets to the standing committee of the people's congress at the corresponding level for the record. The State Council shall, after totalizing the budgets submitted for the record by the governments of the provinces, autonomous regions and municipalities directly under the Central Government in accordance with the provisions of the preceding paragraph, submit the totalized budgets to the Standing Committee of the National People's Congress for the record.

Article 41 In case the State Council or a local government at or above the county level judges that the budget submitted for the record by the government at the next lower level in accordance with the provisions of Article 40 of this Law, contravenes laws or administrative rules and regulations, or contains other inappropriatenesses, and that the resolution approving the budget has to be cancelled, the said government shall submit the matter to the standing committee of the people's congress at the corresponding level for deliberation and decision.

Article 42 After the approval of the budgets of the governments at various levels by the people's congresses at the corresponding levels, the financial departments of the governments at the corresponding levels shall without delay give an official written reply regarding their budgets to the departments at the corresponding levels. The departments at various levels shall without delay give an official written reply regarding their budgets to their subordinate units.

Chapter VI Budget Implementation

Article 43 The implementation of the budgets of governments at various levels shall be organized by the governments at the corresponding levels, and the financial departments of the governments at the corresponding levels shall be in charge of the concrete work.

Article 44 After the beginning of a budgetary year and before the approval of the draft budgets of the governments at various levels by the people's congresses at the corresponding levels, the governments at the corresponding levels may first arrange their expenditures according to the amount of the budgetary expenditures in the corresponding period of the previous year. Upon the approval of the respective budgets by the people's congresses at the corresponding levels, the approved budgets shall be implemented.

Article 45 The departments responsible for collecting budgetary revenues must, in accordance with the provisions of the laws or administrative rules and regulations, collect in time and in full amount the budgetary revenues that ought to be collected, and may not, in violation of the provisions of the laws or administrative rules and regulations, carry out unauthorized reduction of, or exemption from collection of budgetary revenues that ought to be collected or postpone the collection thereof, and may not intercept, detain or misappropriate the budgetary revenues.

Article 46 The departments or units which have the obligation to turn over budgetary revenues must, in accordance with the laws, administrative rules and regulations and the provisions of the financial department under the State Council, turn over in time and in full amount the budgetary funds that ought to be turned over to the State Treasury (hereinafter simplified as the Treasury), and may not intercept, detain, misappropriate or default the turnover .

Article 47 The financial departments of the governments at various levels must, in accordance with the laws, administrative rules and regulations and the provisions of the financial department under the State Council, allocate in time and in full amount the funds for budgetary expenditures and strengthen the management of and supervision over the budgetary expenditures.

The expenditures of the governments, departments and units at various levels must comply with their respective budgets.

Article 48 The Treasury must be established in any budget at or above the county level; it shall also be established for any township, nationality township or town where conditions permit.

The business of the Central Treasury shall be managed by the People's Bank of China and the business of the local Treasuries shall be managed in accordance with the relevant provisions of the State Council.

The Treasuries at various levels must, in accordance with the relevant provisions of the State, manage promptly and accurately the collection, allocation, retainment and turnover of the budgetary revenues, and the appropriation of the budgetary expenditures.

The power to dispose of the funds of the Treasuries at various levels is vested in the financial departments of the governments at the corresponding levels. Except as otherwise provided by the laws or administrative rules and regulations, no departments, units or individuals shall, without the authorization of the financial departments of the governments at the corresponding levels, have the right to draw on any funds from the Treasuries or dispose in any other forms of the funds already put in the Treasuries.

The governments at various levels shall strengthen the management of and supervision over the Treasuries at the corresponding levels.

Article 49 The governments at various levels shall strengthen the leadership over the budget implementation, support the budgetary-revenue collecting departments such as the financial departments, taxation and customs authorities to arrange budgetary revenues according to law and support the financial departments to strictly manage budgetary expenditures.

The financial departments, taxation and customs authorities shall in the course of budget implementation strengthen the analysis of the budget implementation and shall, whenever discovering any problems, promptly suggest that the governments at the corresponding levels adopt measures to settle them.

Article 50 Departments or units shall strengthen the management of the budgetary revenues and expenditures, and may not intercept or draw on the budgetary revenues which ought to be turned over, nor treat any non-budgetary expenditures as budgetary expenditures.

Article 51 The plan to draw on the budget reserve funds of a government at any level shall be made by the financial department of the government at the corresponding level and be submitted to the government at the corresponding level for a decision.

Article 52 The budgetary circulating funds of the governments at various levels shall be managed by the financial departments of the governments at the corresponding levels, and shall be used for the fund-circulating purpose in budget implementation, and may not be diverted to any other use.

Chapter VII Budget Adjustment

Article 53 Budget adjustment refers to any partial alteration of the central budget already approved by the National People's Congress or of the local budgets at the various levels already approved by the local people's congresses at the corresponding levels, which is made due to expenditure increase or revenue reduction necessitated by special circumstances in the implementation of the respective budget, thus making total expenditures exceed total revenues in the original approved balanced budget or making an increase of the debts to be borrowed as compared with the original approved budgets.

Article 54 The governments at various levels shall, with regard to indispensable budget adjustments, work out plans for budget adjustments. The adjustment plan of the central budget must be submitted to the Standing Committee of the National People's Congress for examination and approval. The budget adjustment plans of the local governments at or above the county level must be submitted to the standing committees of the people's congresses at the corresponding levels for examination and approval. The budget adjustment plans of the governments of townships, nationality townships or towns must be submitted to the people's congresses at the corresponding levels for examination and approval. No budget adjustment shall be made without due approval.

Article 55 In case budget adjustments are not approved, the governments at various levels shall not make any decisions making total expenditures exceed total revenues in the original approved balanced budgets or making an increase of the debts to be borrowed as compared with the original approved budget.

In case a decision is made in violation of the provisions of the preceding paragraph, the people's congress or the standing committee of the people's congress at the corresponding level or the governments at higher levels shall order a change or annulment of the decision.

Article 56 Changes in budgetary revenues and expenditures caused by funds returned or subsidies granted by governments at higher levels in the course of budget implementation shall not be regarded as budget adjustments. The local governments at or above the county level shall, on receipt of returned funds or subsidies, report the relevant situations to the standing committees of the people's congresses at the corresponding levels. The governments of townships, nationality townships or towns shall, on receipt of returned funds or subsidies, report the relevant situations to the people's congresses at the corresponding levels.

Article 57 The budgetary expenditures of a department or unit shall be implemented according to the budget items. Any necessary transfer of budgetary funds under different budget items must be reported for approval in accordance with the provisions of the department of finance under the State Council.

Article 58 After the budget adjustment plan of a local government at any level has been approved, the government at the corresponding level shall report such plan to the government at the next higher level for the record.

Chapter VIII Final Accounts

Article 59 Draft final accounts shall be compiled by governments at various levels, various departments and units in accordance with the schedule prescribed by the State Council at the end of each budgetary year.

The concrete matters concerning the compilation of the draft final accounts shall be arranged by the department of finance under the State Council.

Article 60 The compilation of the draft final accounts must conform to the laws and administrative rules and regulations and ensure the accuracy in accounting revenues and expenditures, the completeness of the contents and the prompt submission.

Article 61 A department shall examine, verify and totalize the draft final accounts of all units subordinate to it and then compile draft final accounts of its own and shall, within the prescribed time limit, submit such draft to the financial department of the government at the corresponding level for examination and verification.

The financial department of a government at any level shall, in examining and verifying the draft final accounts of all departments at the corresponding level, have the power to correct any inconformity with the provisions of the laws and administrative rules and regulations.

Article 62 The financial department under the State Council shall compile the draft of the central final accounts, and submit the draft to the State Council for examination and decision, and then the State Council shall submit it to the Standing Committee of the National People's Congress for examination and approval.

The financial department of a local government at or above the county level shall compile the draft final accounts at the corresponding level and submit the draft to the government at the corresponding level for examination and decision, and the government at the corresponding level shall submit it to the standing committee of the people's congress at the corresponding level for examination and approval.

The government of a township, nationality township or town shall compile the draft final accounts at its own level and submit the draft to the people's congress at that level for examination and approval.

Article 63 After the final accounts of the government at any level has been approved, the relevant financial department shall give an official written reply concerning the final accounts to all departments at the corresponding level.

Article 64 A local government at any level shall report its approved final accounts to the government at the next higher level for the record.

Article 65 In case a government at or above the county level judges that the final accounts submitted for the record by a government at the next lower level in accordance with the provisions of Article 63 of this Law contravene the laws or administrative rules and regulations or contain other inappropriatenesses and the resolution approving the final accounts has to be cancelled, the State Council and the local government at or above the county level shall submit the matter to the standing committee of the people's congress at the corresponding level for deliberation and decision; if a decision is made on its cancellation after deliberation, the standing committee of the people's congress at the said next lower level shall instruct the government at the corresponding level to recompile the draft final accounts in accordance with the provisions of this Law, and then submit the draft to the standing committee of the people's congress at the corresponding level for examination and approval.

Chapter IX Supervision

Article 66 The National People's Congress and its Standing Committee exercise supervision over the central and local budgets and final accounts.

A local people's congress at or above the county level and its standing committee exercise supervision over the budget and final accounts of the governments at the corresponding and lower levels. The people's congress of a township, nationality township or town exercises supervision over the budget and final accounts of the government at the corresponding level.

Article 67 A people's congress at any level and the standing committee of the people's congress at or above the county level have the power to conduct investigations of major issues or specific questions concerning the budget or final accounts; governments, departments, units or individuals concerned shall truthfully report the situations and provide the necessary materials.

Article 68 When the people's congresses at various levels and the standing committees of the people's congresses at or above the county level are in session, deputies to the people's congresses or members of the standing committees may, in accordance with the procedures prescribed by law, raise questions or address inquiries concerning the budgets or final accounts to the relevant governments or financial departments, which must promptly answer the questions or inquiries.

Article 69 A government at any level shall, at least twice within each budgetary year, make reports on the budget implementation to the people's congress at the corresponding level or its standing committee.

Article 70 A government at any level shall supervise the budget implementation by the governments at lower levels; A government at lower levels shall regularly make reports on the budget implementation to the government at the next higher level.

Article 71 The financial department of a government at any level shall be responsible for supervision over and inspection of the budget implementation by all departments at the corresponding level and their subordinate units, and shall make reports on the budget implementation to the government at the corresponding level and the financial department of the government at the next higher level.

Article 72 The auditing department of a government at any level shall exercise auditing supervision over the budget implementation and final accounts of all departments and units at the corresponding level and the governments at lower levels.

Chapter X Legal Responsibility

Article 73 Where a government at any level, without an approval afforded in accordance with the law, arbitrarily alters its budget, thus making total expenditures exceed total revenues in the original approved balanced budget or making an increase of the debts to be borrowed as compared with the original approved budget, the person in charge and other persons who are held directly responsible shall be investigated for administrative responsibility.

Article 74 In case the Treasury funds are arbitrarily drawn upon or the funds already put in the Treasury are appropriated by other means in violation of the provisions of the laws or administrative rules and regulations, the financial department of the government shall order the return or recovery of such funds to the Treasury, and the authorities at higher levels shall give administrative sanctions to the person in charge and other persons who are held directly responsible.

Article 75 In case budgetary revenues are concealed, or non-budgetary expenditures are treated as budgetary expenditures, the government at the next higher level or the financial department of the government at the corresponding level shall order the correction of such acts and the authorities at higher levels shall give administrative sanctions to the person in charge and other persons who are held directly responsible.

Chapter XI Supplementary Provisions

Article 76 The people's governments at various levels, all departments and units shall strengthen the management of non-budgetary funds. Measures for the management of non-budgetary funds shall be formulated separately by the State Council. People's Congresses at various levels shall strengthen supervision over the use of non-budgetary funds.

Article 77 The management of budgets in the national autonomous areas shall comply with the relevant provisions of the Law on Regional National Autonomy; In the absence of such stipulations in the Law on Regional National Autonomy, the relevant provisions of this Law and relevant regulations of the State Council shall apply.

Article 78 The State Council shall, in accordance with this Law, formulate rules for its implementation.

Article 79 This Law shall go into effect as of January 1, 1995. On the same day, the Regulations on the Management of State Budget, promulgated on October 21, 1991 by the State Council, shall be invalidated.