(1) Deepening reform of the budget management system

First, we will push ahead with releasing the budgets and final accounts of governments and their departments. We will make our release of government budgets and final accounts more detailed - to subsection-level expenditures in government budgets and final accounts and to every specific project in budgets of special transfer payments. We will release more departmental budgets and final accounts and, except for those that deal with classified matters, we will release the budgets and final accounts of all central and local government departments receiving financial allocations. We will make our release of departmental budgets and final accounts more detailed and specific. In addition to subsection-level headings, we will gradually release basic and project expenditures in departmental budgets and final accounts, and we will find ways to release departmental final accounts according to their economic categories. We will redouble efforts to release expenditures with greater details on official overseas visits, official vehicles, and official hospitality, and make sure that all such publicly financed expenditures are made public.

Second, we will do mid-term fiscal planning. On the basis of the national plan for long- and mid-term development and macro-control needs, we will develop mid-term fiscal policies and formulate a three-year fiscal plan. With regard to the major reforms, policies and projects that will be included in that plan, we will research policy goals, operational mechanisms, and assessment methods. We will use the three-year fiscal plan to discipline annual budgeting so as to make our fiscal policy more comprehensive, forward-looking, and sustainable.

Third, we will improve the ways in which annual budgets are controlled. The focus of budget examination and verification will be extended to include not only how balanced they are and the size of the deficit but also expenditure budgets and policy, and we will tighten constraints on budget outlays. In principle, we will not introduce new policies that increase spending during the execution of the budget. We will make revenue projections less binding and more anticipatory, and promote law-based tax collection and management.

Fourth, we will establish mechanisms for balancing budgets that span more than one fiscal year. When there is deficit due to the adoption of any specific policy, it can be listed under the central financial budget and covered in later years after the policy is adjusted. If there is surplus revenue in the execution of the budget, it should be used to cut fiscal deficit and replenish the Central Budget Stabilization Fund. In case the revenue comes out short of the budgeted figure, efforts should be made to make up the difference by drawing on funds from the Central Budget Stabilization Fund, cutting spending, or increasing budget deficit and issuing bonds within the government debt cap approved by the NPC.

Fifth, we will review and regulate preferential fiscal and tax policies across the board in order to uphold the sanctity of laws and ensure an environment for fair competition. Policies to be reviewed include: various preferential taxes introduced to specific localities by all levels of government, including those to allow the localities to retain all their revenues or turn over their year-on-year gains; policies granting enterprises reductions of or exemptions from taxes and fees, granting them rebates after taxes are paid, giving them government subsidies, and selling land-use rights and state-owned assets to them at lower prices; and policies granting individuals reductions of or exemptions from taxes and fees, granting them rebates after taxes are paid, and giving them government subsidies. All policies violating provisions of laws or administrative regulations must be ended. Preferential tax policies will only be formulated by specialized tax laws and regulations, and no other preferential fiscal and tax policies shall be included in any development plans.

Sixth, we will establish a clearly-positioned government budgeting system with explicitly-divided functions. We will define the spending scopes and priorities of budgets for public finances, government-managed funds, state capital operations, and social insurance funds, and strengthen their coordinated management to avoid overlapping. We will put in place a mechanism for transferring money of which use should be under the overall planning of government-managed funds into the public finance budget. We will transfer more funds from the state capital operations budgets into the public finance budgets. We will enhance the management of budgets for social insurance funds, maintain and increase the value of surplus funds, and research the sustainability of budgets for social insurance funds on the basis of actuarial balance.

Seventh, we will quickly establish the method of accrual accounting for the government's comprehensive financial reporting system. We will formulate reform plans, regulations and standards as well as operation guidelines for such a system, and continue to organize local governments in preparing comprehensive financial reports on a trial basis. We will revise the public finance budgetary accounting system, with some budgetary items dealt with by accrual accounting, to provide basic data for the preparation of comprehensive government financial reports.

(2) Advancing reform of the tax system

First, we will continue with the reform to replace business tax with VAT. We will carry out this reform on a trial basis on railway transport and postal services nationwide, and we will quickly research policies for conducting this reform on telecommunications services and strive to implement them on April 1 this year.

Second, we will carry out a preferential policy of deferred payment of individual income tax to encourage the development of annuity plans in enterprises and public institutions.

Third, we will implement the reform of levying price-based resource tax on coal.

Fourth, we will further expand the preferential tax policy for small businesses with low profits.

Fifth, we will reform and improve the excise tax system, and adjust the scope and mechanisms for its collection and the rate of duty.

Sixth, we will accelerate legislation on the real estate tax.

Seventh, we will speed up legislation on the environmental protection tax.

We will earnestly implement the country's food security strategy, continue to support the efforts to raise overall agricultural production capacity, and guarantee our basic self-sufficiency of cereal grains and absolute grain security. On this basis, we will support the establishment of permanent mechanisms for sustainable agricultural development.

First, we will support the development of ecologically friendly agriculture. We will encourage conservation tillage by carrying out trials to improve the subsoil of land and return plant stalks to fields. We will support recovery of resources from animal manures and select a number of large livestock and poultry farms to begin the trial. We will spread dry-farming techniques.

Second, we will encourage agriculture to go global, and actively use foreign resources.

Third, we will support the restoration and conservation of cultivated land. We will conduct another round of trials to turn cultivated land back to forests in selected provinces. We will support the pilot project to improve cropland and adopt water saving measures in agriculture in parts of the areas with funnel-shaped drainage caused by overtapping groundwater in Hebei Province. We will also launch trials of restoring cultivated land contaminated by heavy metals.

Fourth, we will push forward the reform of the system for subsidizing the purchase and storage of grain and cotton. We will keep the rise in their minimum purchase prices within appropriate limits, set reasonable prices for temporary purchase and storage, and let market forces play a bigger role in deciding their prices. Beginning in 2014, we will phase out the policy of temporarily purchasing and stockpiling soybean and cotton in some areas, and launch a pilot project of granting subsidies on the basis of target prices. We will increase government funding to support key provinces in acting more quickly to renovate their dilapidated warehouses.

First, we must facilitate the reform of the medical and health care systems. In line with the requirements for each year's work set forth in the plan for deepening the reform of the medical and health care systems during the Twelfth Five-Year Plan period, we will increase government subsidies for the new rural cooperative medical care system and basic medical insurance for nonworking urban residents from 280 yuan to 320 yuan per person per year and accordingly increase the annual individual contribution from 70 to 90 yuan per person. We will more quickly push ahead the work of insuring rural and nonworking urban residents against serious illnesses to further reduce their burden of medical expenses. We will increase input in medical assistance in urban and rural areas, expand access to such assistance, and provide assistance to those suffering from serious mental illness. We will increase financial input in public health, continue to implement basic and major public health services projects, and raise annual per capita spending on basic public health services to 35 yuan. We will continue with the trials on comprehensive reform in county-level public hospitals, and develop better policies of subsidizing community medical and health care centers to motivate them and their staff to enhance their services in terms of both quantity and quality.

Second, we will refine the old-age insurance system. We will establish a unified basic old-age insurance system for the rural population and nonworking urban residents, and formulate methods to link the old-age insurance systems in urban and rural areas. We will adhere to the basic old-age insurance system that combines contributions from various sources in society with personal accounts, and improve the regulations on personal accounts and mechanisms to incentivize people to pay more to get more. We will uphold the actuarial balance principle and close institutional loopholes. We will increase the basic pension benefits for retired enterprise employees by 10%. In addition, we will vigorously move forward the reform of old-age insurance in government bodies and public institutions.

Third, we will improve the subsidy policies for low-income groups. We will improve the mechanism for increasing social assistance and social security benefits when consumer prices rise. We will set aside money to raise subsistence allowances for urban and rural residents living in areas that receive central government subsidies by 15 yuan and 12 yuan, respectively, per person per month. We will implement the system of temporary assistance across the country, and further raise subsidies and living allowances for entitled groups.

Fourth, we must continue to follow a more proactive employment policy and redouble efforts to implement it, with the focus on helping university graduates find employment or start businesses, and rural workers' transition into the cities for employment.

First, we will determine how public different types of education are, so we can improve our financial support policies accordingly. We will support the efforts to address issues in key areas and weak links of education reform and development, and further strengthen regulation of the use of government funds for education. We will broaden resources for pre-school education in rural areas. We will increase government subsidies for rural students receiving compulsory education by an appropriate amount per student, improve the basic facilities in weak schools for compulsory education in poor areas, and promote balanced development of compulsory education in urban and rural areas. We will steadily raise government subsidies per student in special needs education schools. We will more quickly develop modern vocational education, and establish a sound system oriented toward reform and performance in vocational colleges with a funding system based on student numbers. At the same time, we will encourage businesses, individuals and society to invest in vocational education through multiple channels. We will implement reform measures to establish a budgetary appropriation system in institutions of higher learning that supports their intensive development. On the basis of IT-based education management and in light of the situation in which children of rural migrant workers are moving beyond regions and into cities with their parents, we will improve the related measurement and calculation methods to increase transfer payments to the regions where these children are accepted.

Second, we will deepen reform of the system for managing science and technology, and support the implementation of the innovation-driven development strategy. We will improve and strengthen management of the central government-funded research programs and their funding; scale up input in basic research, improve the mechanism of government support for research on basic, strategic and frontier science and generic technology; and improve market-oriented mechanisms for technological innovation. We will promote reform of the mechanisms for managing the implementation of major national science and technology programs, and further intensify performance-based management of special funds. We will make further progress in optimizing and integrating science and technology programs financed by the central government, and put in place mechanisms for evaluating performance of, making dynamic adjustments to and suspending science and technology programs (special projects and funds). We will more quickly formulate policies on transferring and profiting from research results. We will activate the state seed funds for encouraging the application of science and technology advances, and refine the policies on venture capital seed funds for small and medium-sized science and technology enterprises.

Third, we will support improvement of the public cultural services system, and promote the sound development of the culture industry. We will stimulate the integration and overall coordinated use of public cultural resources and make basic public cultural services more standardized and accessible, especially in rural areas and poverty-stricken areas in the central and western regions. We will encourage the development of sports and fitness activities nationwide, and support large stadiums and gymnasiums in opening up to the public free of charge or at low prices. We will make efficient use of the funds for developing cultural industries, and vigorously integrate the development of cultural and creative industries as well as design services with that of related industries.

Main expenditure items under the central budget in 2014 are as follows:

The appropriation for agriculture, forestry and water conservancy is 648.747 billion yuan, up 8.6%.

The appropriation for social security and employment is 715.296 billion yuan, up 9.8%.

The appropriation for education is 413.355 billion yuan, up 9.1%.

The appropriation for science and technology is 267.39 billion yuan, up 8.9%.

The appropriation for culture, sports and the media is 51.229 billion yuan, up 9.2%.

The appropriation for medical and health care and family planning is 303.805 billion yuan, up 15.1%.

The appropriation for guaranteeing housing is 252.869 billion yuan, up 9%.

The appropriation for energy conservation and environmental protection is 210.909, up 7.1%.

The appropriation for transport is 434.568 billion yuan, up 5.1%.

The appropriation for stockpiling grain, edible oils and other materials is 139.396 billion yuan, up 10.1%.

The appropriation for national defense is 808.23 billion yuan, up 12.2%.

The appropriation for public security is 205.065 billion yuan, up 6.1%.

The appropriation for general public services is 124.515 billion yuan, up 2.6%.

The appropriation for natural resource exploration and information technology is 60.577 billion yuan, down 20.7%, which is mainly because of the decrease in expenditure on infrastructure construction.

The appropriation for commercial services is 36.669 billion yuan, a reduction of 19.1%, which is primarily due to the spending decrease because no new appropriation will be made for 2014 after the expiration of the policy to provide rural residents with subsidies for the purchase of home appliances.

全國社會保險基金收入37666.51億元，增長9.1%，其中，保險費收入28087.56億元，財政補貼收入8211.85億元。全國社會保險基金支出32581億元，增長13.9%。本年收支結余5085.51億元，年末滾存結余48527.36億元。

以上預算安排的具體情況詳見《中華人民共和國2013年全國預算執(zhí)行情況2014年全國預算（草案）》。