BEIJING, March 17 (Xinhuanet) -- Following is the full text of the Report on the Implementation of the Central and Local Budgets for 2003 and on the Draft Central and Local Budgets for 2004, delivered at the Second Session of the Tenth National People's Congress on March 6, 2004.

    REPORT ON THE IMPLEMENTATION OF THE CENTRAL AND LOCAL BUDGETS FOR 2003 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2004

    Jin Renqing Minister of Finance

    Fellow Deputies,

    The State Council has entrusted me to report to this session onthe implementation of the central and local budgets for 2003 and on the draft central and local budgets for 2004. I'm presenting this report to you for your examination and approval and also for comments and suggestions from members of the National Committee ofthe Chinese People's Political Consultative Conference.

    I. Implementation of the Central and Local Budgets for 2003

    The year 2003 was an unusual year. In the face of a complex andvolatile international situation, the unexpected outbreak of the severe acute respiratory syndrome (SARS) and frequent natural disasters, the Party Central Committee and the State Council responded confidently with resolute decisions. All local authorities and government departments worked hard with one heart and one mind to conscientiously implement the principles and policies formulated by the central authorities and meet the requirements for financial and economic work set at the First Session of the Tenth National People's Congress (NPC). There was continued good momentum in economic and social development and thecentral and local budgets were implemented fairly well.

    National revenue exceeded 2 trillion yuan in 2003 for the firsttime to reach 2.1691 trillion yuan (excluding revenue from generation of debt, both here and below). This was 278.7 billion yuan or 14.7% more than the previous year and 105.8% of the budgeted figure. National expenditures totaled 2.4607 trillion yuan, an increase of 255.4 billion yuan or 11.6% year-on-year and 103.8% of the budgeted figure. Expenditures exceeded revenue by 291.6 billion yuan. Total revenue in the central budget amounted to 1.2465 trillion yuan (after allowing for the additional 82.9 billion yuan used in export tax rebates), up 109.3 billion yuan or9.6% over the previous year and 104.4% of the budgeted figure. Total expenditures in the central budget came to 1.5663 trillion yuan (including 824 billion yuan in tax rebates and subsidies for local authorities), 119.5 billion yuan or 8.3% more than the previous year and 103.5% of the budgeted figure. The deficit in the central budget was held to 319.8 billion yuan as approved at the First Session of the Tenth NPC. Total revenue in local budgetsamounted to 1.8082 trillion yuan (including tax rebates and subsidies granted by the central government), an increase of 221.5billion yuan or 14% year-on-year and 105.7% of the budgeted figure.Total expenditures in local budgets came to 1.78 trillion yuan (including 61.5 billion yuan turned over to the central government),188 billion yuan or 11.8% more than the previous year and 104.1% of the budgeted figure. Local revenue exceeded expenditures by 28.2 billion yuan which was to be used in the following year.

    These figures may change a little when the consolidated final accounts are made.

    The main characteristics of the implementation of the central budget and the financial work in 2003 are as follows.

    1. Revenue continued to grow fairly fast.

    The national economy got off to a good start in 2003, but was later affected by the SARS outbreak and natural disasters such as droughts, floods and earthquakes. Economic growth slowed down for some time and a rather large drop in revenue growth occurred in the second quarter. In response to these changes, authorities of finance and tax and the Customs at all levels energetically implemented the principle set by the Party Central Committee and the State Council that called for unrelenting efforts to prevent and control SARS while unswervingly promoting economic development.They promptly tightened revenue supervision and regulation and strengthened tax collection and management in accordance with the law. Thanks to a rapid recovery and development of the national economy, national revenue growth maintained a good momentum. First,there was strong growth in domestic demand and imports, which resulted in the following year-on-year revenue increase: domestic value-added tax (VAT) increased by 105.4 billion yuan or 17.1%; consumption tax, by 13.4 billion yuan or 12.8%; business tax, by 39.2 billion yuan or 16%; and import duties, by 111.1 billion yuanor 42.9%. Second, the quality of economic growth was raised and the economic performance of enterprises noticeably improved. Corporate income tax rose by 39.9 billion yuan, or 15.9% over the previous year when calculated in comparable terms. Third, personalincomes continued to grow, leading to a year-on-year increase of 20.5 billion yuan or 16.9% in individual income tax, and 11.9 billion yuan or 34.2% in vehicle purchase tax.