3. We intensified oversight of government budgets.
We heard and deliberated reports on the implementation of the country's annual plan and budgets, on the final accounts of the central government, and on auditing work, and we examined and approved the final accounts of the central government in 2010. We conducted investigations and studies on how to prevent local government debt risks and establish a sound mechanism to ensure basic funding for county governments. In light of large and fast-growing local government debt, insufficient standardization of debt financing, and the inability of many regions and industries to repay their debts, members of the Standing Committee stressed the need to promptly clear up the problems of financing corporations of local governments, deal with existing local government debts on the basis of their circumstances and type to defuse local government debt risks step by step. They also stressed the need to strictly enforce laws and regulations such as the Budget Law and the Guarantee Law, prevent and stop local governments from making payment guarantees in violation of regulations, include their debt revenue and expenditures in their budgets, and subject them to review and oversight by the people's congress at the same level. Standing Committee members also emphasized the need to improve the fiscal system for ensuring that the financial resources of central and local governments are in line with their respective powers, further raise the proportion of general transfer payments, and enhance primary-level governments' capacity to provide public services.