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Audit uncovers misuse of funds, tightens oversight

By Zhang Yi | China Daily | Updated: 2025-06-26 00:00
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China has rectified irregularities related to over 654 billion yuan ($90 billion) and disciplined more than 4,100 individuals as part of a sweeping audit reform campaign, according to a report submitted to the country's top legislature on Tuesday.

The annual audit report, delivered by Auditor General Hou Kai to the Standing Committee of the National People's Congress, reviewed the implementation of the central government's 2024 budget and broader fiscal management. It highlighted strengthened efforts to correct irregularities and close loopholes in financial governance.

The report shows that by the end of March this year, authorities had rectified problems uncovered in the 2023 audit, including revising or establishing over 1,700 internal rules and procedures. A closed-loop system for accountability has been put in place, involving problem identification, inter-agency coordination, supervision and public reporting.

"Key departments have taken the lead in investigations and significantly improved their response times," Hou told lawmakers, noting that dedicated task teams have been set up for targeted rectification efforts.

China's central general public budget for 2024 included revenue of around 10.88 trillion yuan and an expenditure of approximately 14.22 trillion yuan, with a deficit of 3.34 trillion yuan, aligning with the approved budget, the report said.

The audit also scrutinized major national projects such as flood control infrastructure, post-disaster reconstruction and digital resource platforms, while assessing financial risks tied to local government debt and the banking sector.

In sectors tied directly to public welfare, the report highlighted issues in education, elderly care, farmland development and agricultural subsidies. Auditors also pursued grassroots-level corruption, identifying a number of low-ranking officials accused of misappropriating funds and harming community interests.

In the area of State-owned assets, the audit focused on the use and management of resources across enterprises, financial institutions, public institutions and natural assets. It flagged early warning signs that could threaten broader economic security and called for improved risk prevention.

Since May 2024, more than 430 serious disciplinary and legal cases have been uncovered and transferred to relevant authorities, involving over 1,400 individuals and 63 billion yuan in misused funds.

Hou said the National Audit Office had solicited feedback from audited entities and issued corrective orders where necessary.

"For major violations, we have handed over cases to law enforcement agencies," he said, adding that the audit office will continue tracking progress and report on full rectification by year's end.

 

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