Full Text: Report on China's central, local budgets
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Content
I. Implementation of the Central and Local Budgets for 2010
II. Draft Central and Local Budgets for 2011
III. Managing Public Finance in Accordance with the Law
and Tightening Management to
Successfully Implement the 2011 Budgets
III. Managing Public Finance in Accordance with the Law
and Tightening Management to
Successfully Implement the 2011 Budgets
1. Strengthening and improving macro-control through management of public finance and promoting sound and rapid economic and social development
We will intensify monitoring and analysis of economic activities, closely track the implementation of the proactive fiscal policy, adjust and improve related policies and measures as needed, and strengthen the coordination of fiscal policies with monetary and industrial policies. We will attach even greater importance to stabilizing the overall level of prices; strongly support the production of grain, edible oils, vegetables, cotton and other daily necessities; stabilize supplies of chemical fertilizers, coal and refined petroleum products; do a good job of importing commodities for daily consumption as well as releasing reserves of commodities onto the market; promote a balance between supply and demand in the market and basically maintain price stability; and ensure the basic living conditions of low-income groups.
2. Accelerating reform of the fiscal and taxation systems and vigorously establishing fiscal and taxation systems and mechanisms conducive to transforming the pattern of economic development
We will improve the public finance system so that the financial resources of governments are in line with their respective powers. We will improve the transfer payment system and use transfer payments more effectively. We will improve public finance systems at or below the provincial level, and complete our work related to improving the mechanism for ensuring basic funding for county-level governments. We will press ahead with the reform to place county finances directly under the management of provincial governments and township finances under the management of county governments. We will improve public finance budgets, make budgets for government-managed funds more detailed, expand the scope within which budgets for state capital operations are implemented and improve related policies and measures, and continue to compile the national budget for social insurance funds on a trial basis. We will eliminate all extrabudgetary funds and place all government revenues under budgetary management. We will thoroughly carry out reforms of departmental budgeting, centralized treasury collection and payment, government procurement and other budget management systems. We will establish a sound budgetary performance management system. We will study how to reform government accounting, and explore ways to prepare government balance sheets on a trial basis. We will carry out experimental VAT reform in some producer services, and adjust and reduce business tax correspondingly to establish institutions for gradually unifying tax policies for goods and services. We will improve the sales tax system, and levy sales taxes on some products that cause environmental pollution or consume large amounts of energy, as well as on some luxury consumer goods. We will improve the personal income tax system, raise the personal income tax threshold on salaries, rationally adjust the tax rate structure, reduce the tax burden on low- and middle-income earners, and strengthen controls on high income. We will further carry forward the reform of resource taxes. In accordance with the principle of rectifying taxes and eliminating fees, we will put non-tax government revenue in order and increase the proportion of tax revenue in total fiscal revenue.
3. Making the management of public finance more scientific and meticulous and striving to utilize government funds more effectively
We will strengthen the legal institutions of public finance, and accelerate the revision of the Budget Law and the Law on Personal Income Tax and the enactment of the VAT Law. We will further standardize the procedures for compiling budgets, make budget content more detailed, genuinely reduce the number of budgets compiled by the central government for local governments, continue to make sure that funds are available for more budgetary items at the beginning of the year, and strictly manage departmental budgets. We will closely integrate budget compilation with budget implementation, the management of balances carried forward, and the management of assets of administrative agencies and institutions. We will work hard to improve management of budget implementation, and make budget implementation more prompt, uniform and effective. We will improve the system for managing budgetary funds. We will exercise strict oversight of public finance, improve the oversight mechanism that covers all government funds and all stages in the use of public finance and safeguard the safety of funds. We will continue to conduct inspections of the implementation of major fiscal and taxation policies. We will vigorously carry out pilot projects of a performance management system for the full course of budget compilation and implementation. We will speed up openness in the budgets, make the budget information that is made public more detailed, get financial departments and relevant departments at the county and township levels to make their expenditures on key projects to improve the people's wellbeing more open to the public, and act promptly to make administrative expenses and other expenditures more open. We will continue to bring unauthorized departmental coffers under control, and do a good job of overseeing and inspecting finances for strengthening agriculture and benefiting farmers and funds for key projects to improve the people's wellbeing. We will intensify our basic fiscal management work and its development at the primary level. We will strengthen supervision of local government debts and strive to guard against financial risks. We will promptly set up a system for the overall management and dynamic monitoring of the debts of financing platform corporations, and standardize management of these debts. We will accelerate the establishment of a mechanism to control the scope of local government debts and a mechanism to warn when they get too large, and promote the standardization of local governments' debt financing.
4. Being hardworking and frugal, and striving to increase revenue and reduce expenditures
We will intensify monitoring of the revenue situation, strengthen tax collection and supervision in accordance with the law, resolutely rectify and put a stop to unauthorized tax reductions and exemptions, strengthen supervision of non-tax revenue, severely crack down on invoice-related crime, strive to collect and supervise taxes in accordance with the law, collect all taxes due and ensure we reach the target for budgetary revenue. We will reduce general expenditures. In principle, we will have zero growth in expenditures on official visits overseas, the purchase and use of official cars, and official entertainment. We will strictly control the construction of office buildings and other facilities for Party and government agencies, prohibit remodeling office buildings in excess of set standards, and strive to lower administrative costs. We will strictly adhere to the "two imperatives" [It is imperative to always be modest, prudent, and free from arrogance and rashness in our work, and it is imperative to continue following the principle of hard struggle and plain living. – Tr.], cultivate the attitude of living austerely, observe strict financial and economic discipline, and firmly oppose extravagance and waste.
Fellow Deputies,
It is very important that we implement the 2011 budgets well. Under the leadership of the Party Central Committee with Comrade Hu Jintao as General Secretary, we will hold high the great banner of socialism with Chinese characteristics, take Deng Xiaoping Theory and the important thought of Three Represents as our guide, thoroughly apply the Scientific Outlook on Development, willingly accept the oversight of the NPC, and listen to comments and suggestions from the CPPCC National Committee with an open mind. We will break new ground, work diligently, ensure complete implementation of the budgets, and make positive contributions to achieving the targets for economic and social development in 2011.
