"Public institutions" refers to social service organizations organized by state organs or other organizations using state-owned assets for the purpose of social welfare, and engaged in activities such as education, science and technology, culture, and health.
Public institutions are generally institutions set up by the state with a certain public welfare nature, but they are not government agencies, and their staff are different from civil servants. In accordance with the spirit of the reform of the classification of state public institutions, public institutions are no longer divided into fully funded institutions and shortfall institutions.
It is divided into the first class of public welfare institutions and the second class of public welfare institutions, for the first category of public welfare, according to the normal business needs, the financial guarantee will be provided, and for the second category of public welfare, according to the financial income and expenditure situation, the financial department will give financial subsidies and support through government procurement of services.
Public institutions undertaking administrative functions are divided into three categories according to the method of appropriation: full supply institutions, differential appropriation institutions, and independent public institutions. Among them, the full-supply institution is a type of public institution.
First, the full supply of public institutions
A full-funded institution is also known as a full-funded institution, that is, a full-budget management institution, which is a form of management in which all the business funds required by it are allocated by the state budget
This form of management is generally applicable to public institutions that have no income or whose income is unstable, such as schools, scientific research units, health and epidemic prevention institutions, business administration and other public institutions, that is, personnel expenses and public expenses must be provided by the state finance. The adoption of this form of management is conducive to the state's comprehensive management and supervision of the income of public institutions, and at the same time, it also enables the funds of public institutions to be fully guaranteed.
2. Institutions with differential appropriations
The personnel expenses of the shortfall appropriation unit shall be allocated by the state treasury, and other expenses shall be self-raised. The salary composition of personnel in these units is 60 per cent fixed and 40 per cent non-fixed. In accordance with the relevant state regulations, units that allocate funds for shortfalls should implement lump sum payments or other management methods suited to their own characteristics in accordance with the degree of autonomy of their funds, so as to prompt them to gradually reduce their state financial allocations and make the transition to self-collection and self-expenditure of funds.
3. Independent public institutions
Independent public institutions, also known as self-supporting public institutions, are public institutions that are not funded by the state. As a major form of public institution, self-supporting institutions collect various administrative fees according to the approval of the government or the price department, and then retain part of the funds for the daily expenses and salary payment of the unit according to the proportion approved by the local finance.
The State Council has 14 institutions directly under the Chinese Academy of Social Sciences, 29 relevant ministries and commissions such as the State-owned Assets Supervision and Administration Commission and the Ministry of Science and Technology, 18 institutions directly under the State Administration of Taxation and the Administration for Industry and Commerce, and 10 state bureaus managed by ministries and commissions. The existing public institutions include 19 categories.
The social function of public institutions
1. Public institutions undertaking administrative functions. That is, public institutions engaged in administrative decision-making, administrative execution, administrative supervision and other administrative work. For example: urban construction supervision, environmental supervision, land supervision, etc.
2. Public institutions engaged in public welfare services. That is, public institutions that provide public welfare services to the society or provide support and guarantee for the government's performance of functions shall be guaranteed by the state and shall no longer engage in business activities. It can be divided into two subcategories.
Public welfare. That is, public institutions that engage in public welfare services related to national security, public safety, public education, public culture, public health, economic and social order, and citizens' basic social rights, and cannot or should not allocate resources by the market. Examples: libraries, museums, environmental monitoring stations, hydrological stations, etc.
Category II of public welfare. That is, to provide public welfare services related to the general needs of the people and the needs of economic and social development to the whole society, and can partially realize the allocation of resources by the market. For example: vocational schools, health service stations, etc.
3. Public institutions engaged in production and operation refer to self-supporting units that provide paid services to the society and obtain income, develop according to the enterprise model, participate in social competition, and bear their own profits and losses, and the state finance no longer bears the capitation funds.
On March 1, 2023, the Central Committee of the Communist Party of China and the State Council issued the "Plan for the Reform of Party and State Institutions" and issued a notice, requiring all regions and departments to conscientiously implement it in light of actual conditions.
The promulgation of the "Plan" shows that there are still many key, difficult and focused problems in the functional system of the party and state organs that do not meet the new situation, new tasks and new requirements. It is embodied in three aspects:
That is, the setup and functional allocation of the party and state institutions "are not fully compatible with the requirements of building a modern socialist country in an all-round way and promoting the great rejuvenation of the Chinese nation in an all-round way, with the requirements of modernizing the national governance system and governance capacity, and with the requirements of building a high-level socialist market economic system."
In 2024, institutional reform work across the country has been launched, and the reform plans submitted by more than 20 provinces and municipalities directly under the central government have been approved by the Party Central Committee and the State Council, and the next step will enter the specific implementation stage.
According to the data, there are about 8 million civil servants in China, about 40 million employees in public institutions, and about 60 million non-staff personnel. According to the "28" principle of the ratio of high-level and grass-roots personnel, the total number of local grass-roots personnel is about 35 million, and the number of non-staff personnel is 48 million, totaling more than 80 million, and these people may be affected by institutional reform.
The purpose of institutional reform
The purpose of the reform of government institutions is to reduce the financial burden, improve administrative efficiency, and adjust and optimize the existing human resource structure. Reducing the surplus number of posts has been proven to free up more resources for upgrading the country's core operations and important tasks, which can help promote the country's modern governance capacity.
Rationally reducing the scale of the organization and reducing the redundant personnel can not only improve work efficiency, but also save financial expenditures, which is a necessary move of this reform, and its impact is extensive and involves non-staff personnel, making this reform appear macro and profound.
The goal of this reform is to build a functional system of Party and state institutions that meets the needs of the new era through systematic reconstruction. The implementation of the reform of local institutions is not only the implementation of the central reform policy, but also a powerful measure to promote the modernization of the local governance system and capacity.
The purpose of the reform of local institutions is to create a more efficient, convenient and scientific government service system, and to provide better and more efficient public services for the people by improving the institutional setup, adjusting the distribution of functions, and streamlining the staffing staff.
On the surface, the current institutional reform is aimed at readjusting some irrational institutional setups, outdated ideological concepts, and functions. However, from a deeper perspective, its fundamental purpose is to make the society more fair and just, and only by timely and effectively addressing the demands of the masses can the people live a more harmonious and beautiful life.
Through reform, some unnecessary departments and personnel will be reduced, and through the integration of resources, relevant powers will be more centralized, so as to improve work efficiency and ensure that people can receive better services.
In the final analysis, reform is aimed at better serving the people, resolving social contradictions, and enhancing the country's overall competitiveness. to adapt to the new environment and new challenges, and promote sustained and healthy economic and social development.
In fact, in the more than 40 years since the reform and opening up, with the continuous advancement of economic development, various undesirable trends of thought have also followed, which have had an impact on the civil servants. Some of them, while enjoying high wages and benefits, began to pursue a corrupt and depraved lifestyle.
These people are not satisfied with vested interests, and under the influence of the bad social atmosphere of looking at money, they are mercenary, and the idea of money worship has taken hold in their minds. Not only did they not fulfill their duties to serve the people, but they used the power controlled by their posts as a tool for their own personal gains. 、
Through this reform of public institutions, we can clear these people out of the ranks of civil servants and maintain the purity of civil servants. In addition, it is possible to curb the phenomenon of over-inflated "civil servant fever".
As a matter of fact, in recent years, the mainland's "public examination fever" has continued to be high, and the reason why people are desperately squeezing their heads to take the public examination is: first, to obtain an "iron rice bowl" that guarantees income in drought and flood, and second, it comes from the temptation of the social status and power of civil servants, and with power, they can use it for their own personal interests and earn extra money, which is also an important reason why civil servant posts have a huge attraction in China.
In short, it is hoped that through this institutional reform, we can streamline the establishment and reduce personnel, change the status quo of bloated institutions, overstaffing and low efficiency, stimulate the vitality of the mechanism, and better adapt to the needs of the new era, so as to promote the high-quality development of China's economy.
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