In the year to November China's fiscal revenue surged to 3.61
trillion yuan (US$462 billion). This is 24.7 percent more than the
same period last year and 70 billion yuan (US$8.95 billion) over
the budgeted figure for the whole of this year.
On Tuesday at a national fiscal work conference in Beijing,
Finance Minister Jin
Renqing said the year's total fiscal revenue could approach 3.9
trillion yuan (US$499 billion). This would be the fourth
consecutive record high.
The fiscal revenue broke the two-trillion-yuan (US$256 billion)
mark for the first time in 2003, exceeded 2.5 trillion yuan (US$320
billion) in 2004 and hit 3.2 trillion yuan (US$409 billion) last
year.
The continuous rapid growth has reflected the country's momentum
in economic development, Jin said. "China's fiscal revenue
expansion is quite stable," Jin observed.
Jin didn't reveal the current fiscal expenditure by central
government but the year's central budget deficit was projected at
295 billion yuan (US$37.7 billion). This is down five billion yuan
?(US$639 million) from the budget figure of last year.
He said government spending at both central and local levels on
farming, forestry, water and gas supplies surged 17.9 percent from
a year earlier while that on education, science and sanitation
climbed 15.5 percent.
The outlay on pensions for the disabled and welfare benefits for
the needy grew by 18.7 percent while that on public securities,
procuratorial and judicial work was up 15.5 percent.
Jin said next year China would continue to adopt a prudent
fiscal policy to "moderately" reduce the budget deficit and channel
money to where it was most needed especially rural public
facilities and services.
He said the cooperative medicare system would cover 80 percent
of counties next year in comparison to the present 50 percent. This
accounted for 406 million rural residents.
Under the system the central government provides a yearly
medical allowance of 20 yuan ?(US$2.6) for each farmer while
local governments have been required to raise the annual per-capita
stipend from 10 yuan (US$1.3) to 20 yuan.
Jin said medical insurance for employees in cities and
townships, especially retired workers of bankrupt and loss-making
companies, were also among the priorities of next year's fiscal
outlay.
Central government spending on the less developed central China
would continue to grow next year in an effort to narrow their
disparity with the richer east, he said, without revealing
details.
Previous reports said the government planned to target its
long-term treasury bonds and spending on western China and
poverty-stricken regions.
Jin also disclosed that the country's 148 million rural students
at primary and junior high schools would be exempt from tuition
fees and extras. "All of their expenditure will be covered by the
fiscal budget to full amount," he said.
Some 4.88 million students in western rural areas have benefited
from this policy. At present the per-person outlay for pupils is
140 yuan (US$17.9) while that for junior-highs is 180 yuan
(US$23).
Taxation, central government investment and land management
would continue to be the ministry's major macro-economic controls
next year.
To encourage energy conservation and environmental protection
the ministry launched the largest-ever revision of consumption
taxes in April.
Export tax rebates for energy-consumption, polluting and
resource-intensive products were reduced or cancelled while those
for products with proprietary intellectual property rights were
raised.
Jin said to rein in fixed asset investment the ministry had
restricted government investment in this sector by providing more
funds to rural areas. Approximately 48 percent of central
government investment went to rural development this year which is
up three percent from 2005, he said.
The ministry also attempted to curb the overheating real estate
sector by raising land use costs and tightening the management of
land use revenues. These measures had helped to ensure the economy
grew in the projected direction, Jin said.
After China tightened controls on money supply and adopted a
battery of industrial and taxation policies to take the heat out of
the economy growth dropped from 11.3 percent in the second quarter
to 10.7 percent for the first nine months.
The State Development and Reform Commission, China's top
planning body has projected a growth of 10.5 percent for the year
estimating that the country's gross domestic product may exceed 20
trillion yuan (US$2.56 trillion).
(Xinhua News Agency December 20, 2006)