For instance, the Ministry had allocated resources such as office blocks and other equipment to public institutions. It later discovered, however, that some institutions had changed the nature of the non-profit office blocks into commercial units by renting them out for side income. In other cases, some have put aside a certain portion of public funding or resources to set up business operations for profit.

A local government official who wishes to remain anonymous, disclosed that public institutions that are granted the rights to collect payments and penalties are the most profitable. He adds that these institutions have a lot more opportunities than administrative institutions, such as Archives Bureau or Cultural Bureau, to create extra wealth due to higher funding and equipment allocation.

Deputy Finance Minister Zhang Shaochun says the Ministry will step up checks and deepen regulation of the management of non-taxed income in public institutions. The latter are expected to report their incomes and expenses separately in the future and these records will be updated into the state budget management.