The family planning authorities have collected almost 28 billion yuan ($4.45 billion) from those who violated the family planning policy, but a large part of this sum remains unaccounted for, says an article in Beijing Youth Daily. Excerpts:

The fees charged are supposed to cover the extra social costs of more children. According to the regulations, all the money collected should be handed over to the State treasury, and all units and individuals are forbidden to retain, embezzle, or share the money. If such regulations are strictly implemented, there shouldn't be any funds unaccounted for.

A book published in 2010 shows the country's family planning authorities have huge administrative costs. By the end of 2005, there were about 50.87 million personnel working in the country's population and family planning system, 10.48 million of whom are registered within the national administrative system and paid by taxpayers' money.

Much of the unaccounted-for funds was spent on covering the great administrative costs of the huge management system. It has become an open secret that funds supposed to be turned over to the State treasury are often transferred back to family planning departments. That's why some legislators and policy advisors propose to cancel the "social cost" fees.

Worse, some counties even distribute part of the sums to administrative personnel as bonuses.

Especially after the agricultural tax was cancelled, the charging of family planning fees has become a major source of funds for some grassroots administrative departments. The problem has become a loophole in the fiscal management which deserves greater concern.

(China Daily 05/08/2012 page9)