Pull officials' hands out of public till
- Source: Global Times
- [06:02 January 06 2010]
- Comments
While China's economy is enjoying continuous boom for decades, the government is bearing a heavier burden of operating expenditure.
Its counteraction may derail the nation's reemergence as a key player in the world economy.
The latest figures, released by the Ministry of Finance, the National Development and Reform Commission, and the National Bureau of Statistics, amply illustrate how serious the potential counteraction could be.
The expenditure on government vehicles shot up to 200 billion yuan ($29.3 billion) in 2009. Coupled with expenditure on dining, wining and overseas travel, the total accounts for more than 20 percent of China's yearly fiscal budget.
The government's huge operating expenditure, though partly attributable to the real cost of running a traditionally Big Government, has plenty of room for cutting and regulating. It is an open secret that numerous government cars with unreasonably high expenses are used for private purposes, that many luxury overseas trips are accounted for in the name of field research, and that countless banquets and refreshments are indulged in on the pretext of business.
This "gray corruption," intertwined with a chain of special interests, partly explains why government expenditure has grown much faster than household or government income since 2005. It also underscores the reasons why the cost-cutting campaign, launched at all levels of government since 1998, has been such a tough job and bears any fruit with great difficulty.
With both economic efficiency and social justice prioritized for further reform, China must win the war that is crucial to build up its credibility at home and sharpen its competitive edge abroad. The dubious privileges and fringe benefits enjoyed by powerful officials could widen economic disparity between the rich and the poor, foment discontent, and threaten social stability.
Numerous bitter historical lessons should be learned: The heavier a government's financial burden, the less its efficiency; and, the later the issue of gray corruption is resolved, the worse its effect on society.
Though there can be no magic pill to eliminate the endemic problem of gray corruption, certainly there is a strong case for more effective measures to be taken on legal and institutional bases.
A zero-tolerance policy must be made to compel officials to keep their hands out of the public till. In addition to the moral drive against various forms of corruption, there needs to be a more scientific cost analysis of government expenditure.
Only when a real cost-effective, clean government is in place can the country move forward, and at a better pace, on its journey toward sustainable prosperity.
