The 2009 State Treasury Work Conference of the People s Bank of China (PBC) was convened in Nanning, Guangxi. The meeting reviewed the work in 2008 and made arrangements for 2009. Mr. Su Ning, Deputy Governor of the PBC and Mr. Li Jinzao, Vice Secretary of the CPC Guangxi Committee addressed the meeting.
Su pointed out that, facing the rare natural disasters and a complicated economic environment in 2008, the State Treasury staff improved work efficiency to enable the State Treasury to play its due role in supporting economic and social development. Efforts were made to accelerate the application of information technology, reinforce the infrastructure, strengthen internal control and enhance the analysis and management of treasury funds.
Su emphasized the significance of improving the management of the State Treasury in the year 2009, which marks the 60th anniversary of the founding of the PRC and a crucial year for the implementation of the 11th five-year plan. For the purpose of improving the infrastructure, deepening the reform and enhancing the management of the State Treasury in 2009, Su brought forth seven requirements as follows:
1. The scientific approach to development should be followed to establish a first-class modern State Treasury in line with the needs of the socialist market economy. Information technology and other technologies should be better applied to put in play the role of the State Treasury in providing public services.
2. State Treasuries at various levels should implement the policy measures formulated by the State Council aiming at strengthening financial support for economic development. To this end, efforts should be made to accelerate the collection and disbursement of treasury funds, streamline intermediary links, make timely appropriation of tax rebates to enterprises concerned according to relevant policies, reinforce the support to projects concerning people s welfare so as to ensure safe and timely fund appropriation.
3. The application of information technology should be sped up. The PBC should closely cooperate with finance, taxation, customs and social security agencies to accelerate the application of the State Treasury information processing system. Based on the experiences drawn from successful pilot projects, the PBC will expand the coverage of the State Treasury Centralized Booking System. Efforts will be made to speed up the development of the State Treasury management information system, in order to provide enterprises with full access to State Treasury information.
4. Efforts will be made to improve the State Treasury cash management. The "three-office" principle, mutually agreed upon by the Ministry of Finance (MOF) and the PBC and approved by the State Council, will be applied to work division. The MOF is in charge of analyzing and forecasting revenues and expenditures, namely the back office; the MOF and the PBC are in charge of middle-office work streams, such as making decisions on operations according to the volume of the Treasury funds and money supply and demand on the market; the PBC serves as the front office responsible for detailed operations.
5. Statistical analysis and research of the State Treasury should be reinforced, so as to provide adequate information for macroeconomic management and making monetary policy.
6. Efforts should be made to prevent risks and safeguard the security of Treasury funds. The PBC shall observe the Law of Budget when reviewing and processing budgetary expenditures. Efforts will be made to enhance the internal control system, study how to improve the work process and staffing, strengthen risk prevention capability, in a bid to ensure the safety of Treasury funds.
7. Human resources will be enhanced.
Mr. Li Jinzao introduced the economic and financial developments in Guangxi, and extended gratitude to Nanning central sub-branch of the PBC for its efforts in supporting economic development and providing financial services in the region and spoke highly of the state treasury agency efforts in helping the provincial government to manage and monitor budgetary funds and to enhance the efficiency of the use of the governmental funds.
Representatives from the Ministry of Finance, the Ministry of Human Resources and Social Security, the General Administration of Customs, the State Administration of Taxation and the branch offices of the PBC attended the conference.
