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New rules limit Chinese government spending


08:10, July 10, 2012

BEIJING, July 9 (Xinhua) -- The Chinese central government on Monday promulgated a new regulation designed to reduce administrative costs for government and public institutions.

The regulation explicitly prohibits government agencies from purchasing luxury items, goods or commodities above certain standards, as well as defines a frugal working style for the country's civil servants.

For example, it says that government agencies should simplify protocols for public receptions and should not borrow cars from companies.

The regulation will also be implemented by public institutions,including legislative bodies, courts, procuratorates and political parties,according to an explanatory note released along with the regulation.

In addition, the regulation calls for greater supervision over the use of public funds for receptions, vehicles and overseas trips, also known as "the three public consumptions," as they have been deemed by the public as a major source of corruption and waste.

Authorities should integrate spending on these three areas into their budget plans, devise spending plans for the items and publicize their budgets and expenditures on a regular basis, the regulation said.

The government began to disclose information on the three items in 2011 following public calls for greater budget transparency.

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