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E-mail China.org.cn, August 23, 2024
ThePaper.cn:
Considering the current fiscal revenue and expenditure situation, how can local governments ensure a necessary level of spending intensity? What measures will the MOF take to better ensure sufficient fiscal strength of local governments? Thank you.
Wang Jianfan:
Thank you for your questions. From January to June, local general public budget revenue reached nearly 6.6 trillion yuan, with a year-on-year growth of 0.9%. The relatively small growth rate in the first half of the year can be attributed to several factors. First, tax deferrals for micro-, small and medium enterprises raised the base figure last year. Second, the continued decline in prices of some energy and mineral products has impacted the realization of general public budget revenue. Third, the policy introduced in the middle of last year to increase the special additional deductions for individual income tax has this year led to a delayed reduction in revenue. Additionally, land transfer revenue, which has garnered significant attention, amounted to 1.53 trillion yuan in the first half, a decrease from the same period last year but with a narrowing decline. Overall, local fiscal revenue growth showed a monthly rebound trend from January to June. During this period, local general public budget expenditures reached 11.8 trillion yuan. Monitoring indicates that expenditures for basic living needs, salary and governments function at the primary level are secure, and expenditures on key sectors such as social security, employment, education, agriculture, forestry and water resources are well protected.
Furthermore, as reflected in the 2024 budget report, the central government has increased transfer payments to local governments. The total central-to-local transfer payments for 2024 are 10.2 trillion yuan, with 8.99 trillion yuan already being allocated by the end of June, accounting for 88.1% of the total.
Comparing these figures, we see that in the first half of the year the central government allocated 8.99 trillion yuan in transfer payments, while local general public budget revenue was 6.6 trillion yuan and general public budget expenditures were 11.8 trillion yuan. From both the revenue and expenditure perspectives, fiscal resources are sufficient to cover expenditures.
In summary, local fiscal operations generally remain stable. Looking forward, the MOF will resolutely implement the decisions made at the third plenary session of the 20th Central Committee of the CPC, further deepen the reform of fiscal and taxation systems, improve the budget system, refine the fiscal transfer payment system and ensure that the fiscal resources of prefecture- and county-level governments are commensurate with their powers. Thank you.
