Chapter 1974 - The Secret of Finance

Wang Qiyi's remark signaled they shouldn't pursue the "Flower Donation" issue tonight. Ai Zhixin had participated in the customs industry rectification meetings and understood the Byzantine complexity of Guangzhou's sex trade. Discussing it without detailed investigation would be mere empty talk. He nodded agreement.

"Did you notice something troubling today?" Wang Qiyi was replaying the meeting in his mind, concerned about the other transmigrators' performance.

"What?"

"I said it during the meeting—too many people are treating themselves as Guangzhou Municipal Government officials first and foremost."

"That can't be helped." Ai Zhixin was more sanguine about it. Unlike the Wang couple, who were only responsible for specific operations, he had to coordinate across multiple domains. It gave him a broader perspective.

"If we want to accomplish anything in Guangzhou, we need Liu Xiang's support—and police, commerce, propaganda cooperation. Though we nominally hang the same plaque as the General Bureau, specific matters still flow through the Guangzhou Municipal Finance and Tax Bureau. We can't bypass Liu Xiang's authority, nor can we afford direct confrontation."

"Did you forget why our Finance and Tax Bureau's authorization specifies 'Directly Subordinate to Central Administration Council'?" Wang Qiyi tapped his teacup lightly, speaking slowly. "Our system isn't like the old timeline where each locality belongs to itself, managed hierarchically with superiors providing only business guidance. We operate under vertical leadership. The authority Ming Lang granted us: personnel organization rests in our own hands. Our wages don't flow through Guangzhou finance." He paused. "We are an independent system, correct?"

"So the positioning the Center gave us is checks and balances." Ai Zhixin had considered this problem long ago, but recent revenue pressures had pushed it from his mind. Now that Wang Qiyi mentioned it, understanding crystallized immediately. "Local governments operate horizontally. We, Delong, and that Reserve Bank—which is still just a nameplate—operate vertically."

"Exactly. Together with Delong, we maintain an iron grip on their funds. Local government fiscal accounts are managed by us. Without Finance and Tax Bureau documentation, they can't touch money in the National Treasury, nor can they access funds in their own local fiscal accounts. And since all money flows through the National Treasury at Delong, the provenance and destination of every copper coin remains visible to the Center. Governments at all levels have authority to appoint personnel and establish institutions, so the Center can only control them through fiscal leverage."

Having served in grassroots departments, Wang Qiyi understood precisely how malleable those functional departments supposedly "eating local finance"—Public Security, Procuratorate, Court, Culture, Entertainment, Education, and so forth—actually were to local government pressure. In some jurisdictions, people jokingly called the Public Security, Procuratorate, and Court the "domestic servants" of local government. If they dared resist local government instructions, they'd immediately face the predicament of fiscal strangulation. Funding cuts and land denials were common tactics. Some localities even resorted to cutting water and power directly to office buildings and staff quarters.

Transmigrators were not saints. When seated in positions of local authority, they naturally developed partisan stances. So the Administration Council wanted to strangle local autonomy from the outset, eliminating all possibilities of factionalism.

By building finance and taxation into an independent vertical system through the Finance and Tax Bureau, local functional departments—freed from fiscal anxiety—might not genuflect so readily to local government demands. Not only functional departments; this also circumvented much of the internal manipulation enabled by Finance Bureau subordination to local management in the old timeline.

Internal controls for local governments and departments under Senate rule had been established early. From the founding of the Cheka to the separation of military administration and command systems, this consciousness permeated everything. Take the Finance and Tax Bureau itself: since establishment, a single sum of tax had to pass through at least four stations internally—Tax Assessment Division, Hall Collection Post, Hall Accounting Post, and Agency Tax Accounting. Externally, tax funds were ultimately received by Delong. This cross-post, cross-department restraint mechanism vastly increased the difficulty of systematic fraud.

"Internal controls and systemic checks and balances are the hallmark of modern government management," Ai Zhixin summarized. He suddenly felt the weight on his shoulders grow heavier.

"By the way, if the tax-sharing plan passes, we need to submit a report to Chief Cheng." Zhang Xiaoqi realized her husband and Ai Zhixin had overlooked a critical issue. "The Central Treasury must be separated from the Local Treasury. Tax funds shared to the locality are still tax revenue and cannot be deployed directly as fiscal expenditure! You let this slip in the meeting. We should have Delong open an additional Municipal Treasury Account for Guangzhou City. Shared tax funds enter there first, then can only be allocated to Guangzhou City's Fiscal Account after we issue authorization."

"Sister Zhang, let me make sure I understand this." Ai Zhixin worked through the logic. "Assume we collect 100 yuan in property tax, with a 60-40 locality-Center sharing arrangement. After we remit the tax funds to Delong, they deposit 40 yuan into the Central Treasury and 60 yuan into the Guangzhou Municipal Treasury. That money still can't be spent. Only when we issue an appropriation notice to Delong can they allocate that 60 yuan to the Guangzhou Fiscal Account?"

"Correct. Though not necessarily only to the Guangzhou Fiscal Account. What if Guangzhou has other extra-budgetary expenditures? Don't forget the Central-Direct Enterprises and Institutions."

"Then can Guangzhou receive extra-budgetary income? Like Central transfer payments?"

"Certainly. Regardless, we must insist that Treasury and Finance operate as two separate lines. Treasury is managed by Delong; Finance is managed by us. Whether transfer payments flow through Treasury transfers or Fiscal appropriations is decided by the Administration Council."

"I think Meng Xian and Liu Xiang will curse you to death when they find out. Hahaha!"

Guangzhou, Haopan Street.

The smooth stone pavement underfoot, the orderly shops lining the roadside, peddlers calling their wares, boats of all sizes crowding the river—it all gave Zeng Juan, who'd walked these streets countless times since childhood, the sensation of inhabiting another world.

One year. Just one year. Twelve months ago, he and his friends had loitered here eagerly awaiting new comic strips and Australian films, debating whether Guan Yu could really behead Hua Xiong with warm wine still in hand. Then, seemingly in the blink of an eye: Guangzhou fell, Australians established government, plague swept through, the Guan Di Temple was cleared, civil service examinations were held. Until now. It felt as though he'd lived an entire lifetime compressed into this single year. Everything overturned.

Among his circle of friends, Chen Shixin had gone to Lingao, reportedly studying painting under an actual Australian Senator. Li Ziyu was rising rapidly through the Police Bureau, repeatedly earning merits and commendations, recently sent to Lingao for advanced training—promotion upon return was virtually guaranteed. As for Zhang Yu, needless to say—a rising star in Guangzhou's commercial circle. Even figures like Gao Ju offered him an Australian-style handshake and polite pleasantries when they crossed paths. Only Zeng Juan himself had been drifting half a year ago, reading newspapers aloud to teahouse patrons and chattering about Australian affairs. Fortunately, fortunately...

Zeng Juan tugged the hem of his tax uniform to sharpen its lines. He unconsciously glanced at the number on his chest and the badge on his shoulder again. This uniform had been designed by Director Ai in the Australian style. The near-black navy blue lent anyone wearing it an air of grave authority. Though it lacked a Sam Browne belt and peaked cap, it strongly resembled Li Ziyu's police uniform—but far crisper. The police uniform was cotton cloth.

The Senate-issue tax uniform represented a hybrid of the Zhongshan suit and the Type 07 police uniform based on old timeline tax service attire, omitting fussy ties and collar insignia. The left chest badge bore personnel number and tax emblem; epaulets had been eliminated. Originally Ai Zhixin had planned to use thin wool fabric for winter wear but capitulated after vigorous lobbying from the Ministry of Light Industry and actual inspection of imported Dutch linen. Fortunately, compared to Police or Political Security departments, Finance and Tax Bureau personnel were relatively few and mostly engaged in clerical work with low garment attrition. Ai Zhixin's tax uniform could be considered the uniform closest to old timeline standards approved by Wu De.

The fabric was crisp and durable. The cut of the tax bureau uniform was more refined than military and police attire, fitting better. Walking down the street conferred a majestic bearing.

According to Vice Director Wang, this was because their Finance and Tax Bureau, like Li Ziyu's Police Bureau, were both "Court Hawks and Hounds." "If police are dogs that bite people, then we're hawks. Eyes must be sharp enough not to miss a milli-cent; claws must be ruthless enough not to let go of a cent."

Zeng Juan reflected that these Australians—using that new phrase from Lingao—had very strange mental circuits. "Hawks and Hounds" was never a complimentary term, yet they applied it to themselves with such righteous self-satisfaction. This was probably the simple, robust authenticity Li Ziyu talked about. But speaking of which, whether hawk or hound, since donning this tax uniform, his spine had straightened, his stride carried wind, and even encountering old acquaintances on the road made him feel faintly condescending. Moreover, this outfit was vastly superior to Li Ziyu's shapeless, wrinkled police uniform—fabric crisp and substantial, cut precisely tailored... Zeng Juan accidentally found himself thinking "again" of those tax hall girls he'd met with a few days ago.

Head up, chest out, abdomen in, stride open, arms straight. Zeng Juan withdrew his wandering thoughts, reciting the "habits" drilled by instructors with bamboo canes at the Guangzhou Cadre Training School, quickening his pace to catch up with his partner and Team Leader Huang Ping.

Their final destination today was the Gao Residence—home of Gao Ju, Australian Song's "closest partner" in Guangzhou. These tax administrators didn't patrol the streets daily like Li Ziyu's beat police. Finance and Tax Bureau regulations were strict: no field visits without assigned tasks. Typically, they collected and organized data files transferred from the hall and maintained records on taxpayers under their jurisdiction from the office.

Vice Director Wang set exacting standards for this work. A random selection of taxpayer files was examined quarterly by non-jurisdiction tax administrators. If those readers couldn't grasp the basic "management elements" from the files alone, the work was deemed substandard. Not only did the work have to be redone, but the entire group's bonuses would be forfeit. After today's visit, barring unforeseen circumstances this week, they likely wouldn't leave the Finance and Tax Bureau again. And Team Leader Huang had received transfer orders to the Inspection Division starting next week. According to Leader Huang, this visit would be his last as their supervisor.

(End of Chapter)