Chapter Ⅲ Examination and Approval of Final Accounts, Hearing of and Deliberation over Reports on Implementation of the Plans for National Economic and Social Development and the Budgets, and Hearing of and Deliberation over Reports on the Work of Auditing.

Article 15 The State Council shall, in June every year, submit the draft of central final accounts of the previous year to the Standing Committee of the National People’s Congress for examination and approval.

Local people’s governments at or above the county level shall, during the period of June through September every year, submit the drafts of their final accounts of the previous year to the standing committees of the people’s congresses at the corresponding levels for examination and approval.

The draft of the final accounts shall be drawn up under the headings listed in the budget approved by the people’s congress at the corresponding level, namely, the amounts budgeted, adjusted or altered, and the amount practically used, and explanations shall be made.

Article 16 The State Council and the local people’s governments at or above the county level shall, during the period of June through September every year, report to the standing committees of the people’s congresses at the corresponding levels on the implementation of the plan for national economic and social development and the budget during the first half of the current year.

Article 17 Where after approval by the people’s congress, the plan for national economic and social development or the budget needs to be partially adjusted during implementation, the State Council and the local governments at or above the county level shall submit a plan for adjustment to the standing committees of the people’s congresses at the corresponding levels for examination and approval.

Adjustment of budgetary funds between different headings shall strictly be controlled. Where the funds arranged in the budget for agriculture, education, science and technology, culture, public health, social security, etc, need to be reduced, the State Council and the local governments at or above the county level shall submit the matter to the standing committees of the people's congresses at the corresponding levels for examination and approval.

The relevant department in charge under the State Council or the local people’s government at or above the county level shall, one month before the standing committee of the people’s congress at the corresponding level holds meetings to examine and approve the budget adjustment plan, submit a preliminary plan for budget adjustment to the financial and economic affairs committee of the people’s congress at the corresponding level for initial examination, or to the relevant working office of the standing committee for soliciting opinions.

Article 18 When examining the draft final accounts and the report on budget implementation, the standing committee shall focus on the following:

(1) balance between the budget revenues and expenditures;

(2) arrangements for expenditures on key projects and the funds allocated;

(3) arrangements for revenues in excess of the budget and their use;

(4) establishment and application of the budget system in a department;

(5) transfer of payments to the government at the next lower level; and

(6) implementation of the resolution adopted by the people’s congress at the corresponding level on approving the budget.

In addition to what are specified in the preceding paragraph, the Standing Committee of the National People’s Congress shall focus on examining the balance of government bonds; and the standing committees of the local people’s congresses at or above the county level shall, on their part, focus on examining the subsidiary funds arranged by the government at the next higher level and their use. Article 19 At the same time as the standing committee examines and approves the final accounts every year, it shall hear and deliberate over the work report on auditing prepared by the audit department in respect of the implementation of the budget over the precious year and other financial revenues and expenditures, which is submitted by the people’s government at the corresponding level.

Article 20 The opinions about the report on the implementation of the plan for national economic and social development, the report on the implementation of the budget, and the work report on auditing, expressed by the component members of the standing committee shall be sent to the people’s government for canvassing and handling. The people’s government shall submit to the standing committee a written report on the results of canvassing and handling. When the standing committee deems it necessary, it may adopt a resolution on the work report on auditing; and the people’s government shall, within the time limit prescribed in the resolution, report to the standing committee on the implementation of the resolution.

The report on the implementation of the plan for national economic and social development, the report on the implementation of the budget, and the work report on auditing heard by the standing committee and the opinions expressed during deliberation over the reports, as well as the report submitted by the people’s government on the results of its canvassing and handling of the said opinions or the report on its implementation of the resolution, shall be distributed in a circular to the deputies of the people’s congress at the corresponding level and made known to the public.

Article 21 After a five-year plan for national economic and social development is approved by the people’s congress, the people’s government shall, at the mid-term stage of its implementation, submit a mid-term assessment report on the implementation of the plan to the standing committee of the people’s congress at the corresponding level for deliberation. Where the mid–term assessment shows that the plan needs to be adjusted, the government shall submit a proposal for adjustment to the standing committee of the people’s congress for examination and approval.

Chapter Ⅳ Inspection of the Enforcement of Laws and Regulations

Article 22 The standing committees of the people’s congresses at all levels shall, by reference to the channels specified in Article 9 of this Law, annually select a number of important issues which have a bearing on the overall situation of reform, development and stability and on people’s immediate interests and are of widespread concern, and make planned arrangements for inspection of the enforcement of relevant laws and regulations in respect of the said issues.

Article 23 The annual plan of a standing committee for inspection of law enforcement shall, upon adoption by the Council of Chairmen or the council of chairmen, be distributed to the component members of the standing committee and made known to the public.

The standing committee’s inspection of law enforcement shall be arranged and conducted specifically by the relevant special committee of the people’s congress at the corresponding level or the relevant working office of the standing committee.

Article 24 Based on the annual plan for inspection of law enforcement, the standing committee shall organize teams for inspection of law enforcement in accordance with the principles of crack members and high efficiency.

The members of a team for inspection of law enforcement shall be selected from among the component members of the standing committee and the component members of the relevant special committees of the people’s congress at the corresponding level, while some deputies of the people’s congress may also be invited to join the team. Article 25 The Standing Committee of the National People’s Congress and the standing committee of the people’s congress of a province, autonomous region or municipality directly under the Central Government may, where necessary, authorize the standing committee of the people’s congress at the next lower level to inspect the enforcement of relevant laws and administrative regulations in its administrative area. The authorized standing committee shall submit a written report on the inspection to the standing committee of the people’s congress at the next higher level.

Article 26 After inspection of the law enforcement, the team for inspection of law enforcement shall, in a timely manner, present an inspection report which shall be submitted to the standing committee for deliberation upon the decision by the Council of Chairmen or the council of chairmen.

The report on inspection of law enforcement shall contain the following contents:

(1) an assessment of the enforcement of laws and regulations inspected, the problems that exist in law enforcement and suggestions for improving law enforcement; and

(2) suggestions for revising relevant laws and regulations in order to improve them.

Article 27 The opinions expressed by the component members of the standing committee during deliberation over the report on inspection of law enforcement shall, along with the report on inspection of law enforcement, be sent to the people’s government, people’s court or people’s procuratorate at the corresponding level for canvassing and handling. The people’s government, people’s court or people’s procuratorate shall, through their respective working offices, submit the results of canvassing and handling, to the relevant special committees of the people’s congress at the corresponding level or the relevant working offices of the standing committee to solicit their opinions, before presenting a report to the standing committee. Where necessary, the Council of Chairmen or the council of chairmen may decide to request the standing committee to deliberate over the report, or the standing committee may arrange for follow-up inspections; and the standing committee may also authorize a relevant special committee of the people’s congress or a relevant working office of the standing committee to arrange for follow-up inspections.

The report of the standing committee on inspection of law enforcement and the opinions it expressed during deliberation, as well as the report of the people’s government, people’s court or people’s procuratorate on the results of its canvassing and handling of the opinions, shall be distributed in a circular to the deputies of the people’s congress and made known to the public.