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Full Text: Report on China's central, local budgets

English.news.cn   2010-03-16 14:30:04 FeedbackPrintRSS


 
Graphics shows the budgetary balance of the central government for 2010, according to the report on the implementation of the central and local budgets for 2009 and the draft central and local budgets for 2010 released on March 5, 2010. (Xinhua/Meng Lijing) 

4. Main expenditure items provided for in the central budget

There is only a slight projected increase in the disposable revenue of the central government in 2010, but spending will increase 6.3%. The plans for expenditures call for strictly controlling general expenditures; lowering administrative costs; and giving top priority to ensuring funding for key items such as agriculture, education, social security, employment, and low-income housing. To help NPC deputies review the budget and to highlight expenditure items more clearly, we have adjusted their classification to make them more specific. The main expenditure items including central government spending and transfer payments to local governments are as follows.

1) The appropriation for education spending is 215.99 billion yuan, an increase of 17.851 billion yuan or 9%, and 2.7 percentage points higher than the average increase in total expenditures in the central budget. This figure consists of 61.035 billion yuan of central government spending and 154.955 billion yuan of transfer payments to local governments. We have appropriated 73.15 billion yuan to further improve the mechanism to guarantee funding for rural compulsory education, implement the policy to exempt urban students receiving compulsory education from tuition and miscellaneous fees, and ensure that children of rural migrant workers have equal access to compulsory education in cities. We have appropriated 19.78 billion yuan in subsidies to implement a performance-based salary system in rural schools providing compulsory education. Six billion yuan in subsidies has been appropriated to implement the policy of exempting rural students in secondary vocational schools whose families have financial difficulties and students in such schools who are studying agriculture-related majors from paying tuition. We have appropriated 10 billion yuan to support projects to renovate rural junior secondary school buildings in the central and western regions and ensure the safety of primary and secondary school buildings nationwide. We have appropriated 22.6 billion yuan to implement policies to provide scholarships and grants to students from poor families and offer interest-subsidized state loans to students. We will strengthen the development of pre-school education and special education schools. We have appropriated 11.6 billion yuan to continue to experiment with reducing the debt burden of central government institutions of higher learning, and launch a new phase of the May 1998 Program for developing higher education. We have appropriated 42.6 billion yuan to support the 211 Project and the development of higher education in central and western regions in order to raise the quality of higher education. Ten billion yuan has been appropriated to implement the Outline of the National Medium- and Long-Term Program for Education Reform and Development.

2) The appropriation for science and technology spending is 163.285 billion yuan, an increase of 12.083 billion yuan or 8%, and 1.7 percentage points higher than the average increase in total expenditures in the central budget. This figure consists of 159.719 billion yuan of central government spending and 3.566 billion yuan of transfer payments to local governments. We have appropriated 30.19 billion yuan in the budget to implement major science and technology projects. We have appropriated 110.116 billion yuan to support basic research, research in cutting-edge technologies, research for public benefit, and R&D on major, generic, key technologies. We will expand trials of independent research on and production of major scientific research equipment. We will create new ways to invest in science and technology; promote intimate integration of the efforts of enterprises, universities, research institutes, and end-users; and become better able to facilitate progress in science and technology. We will improve the income distribution system so that better fosters the application of scientific and technological advances. We will encourage imports of key equipment and parts, and advanced technologies.

3) The appropriation for spending on culture, sports, and media is 31.449 billion yuan, a decrease of 1.9%. This figure consists of 15.796 billion yuan of central government spending and 15.653 billion yuan of transfer payments to local governments. The project included in the Eleventh Five-Year Plan to extend radio and TV coverage to all villages has already been basically completed, and spending in this area will decrease accordingly. However, expenditures in other areas will increase by 9.5%. These include continuing to provide free access to museums and memorial halls, implementing major cultural programs such as the national shared database for cultural information and resources, improving the protection of our cultural heritage, strengthening the broadcasting capability of the news media, giving greater support to the development of the cultural industry, actively supporting reform of the cultural management system, and focusing on transforming 148 commercial publishers affiliated to central government departments or agencies into enterprises.

4) The appropriation for medical and health care spending is 138.918 billion yuan, an increase of 11.204 billion yuan or 8.8%, and 2.5 percentage points higher than the average increase in total expenditures in the central budget. This figure consists of 4.331 billion yuan of central government spending and 134.587 billion yuan of transfer payments to local governments. We have appropriated 126.82 billion yuan to support the reform of the pharmaceutical and healthcare systems. We will further raise the participation rate in the new type of rural cooperative medical care system and basic medical insurance for non-working urban residents, and raise the subsidy from 80 yuan to 120 yuan per person per annum. We will strengthen medical assistance in urban and rural areas. We will improve the funding system for urban and rural basic public health services, and continue to carry out major public health service projects. We will support implementation of the basic drug system in 60% of community-based medical and health care institutions. We will promote the trial reform of public hospitals, and improve the community-based medical and health care service system. We will also promote the development of traditional Chinese medicine.

5) The appropriation for social security and employment spending is 358.225 billion yuan, an increase of 28.559 billion yuan or 8.7%, and 2.4 percentage points higher than the average increase in total expenditures in the central budget. This figure consists of 30.797 billion yuan of central government spending and 327.428 billion yuan of transfer payments to local governments. We have appropriated 318.508 billion yuan to social security, an increase of 27.933 billion yuan or 9.6%. We have appropriated 7 billion yuan in subsidies to carry out trials of a new rural old-age insurance system and gradually carry forward the pilot reform of old-age insurance in institutions. We have appropriated 156.1 billion yuan to subsidize old-age insurance funds of enterprises to raise the basic pensions of retirees, implement a national unified method for transferring basic old-age insurance policies of enterprise employees, and consolidate the overall planning system for old-age pensions at the provincial level. We have appropriated 63.3 billion yuan in subsidies to increase urban and rural subsistence allowances. We have appropriated 21.3 billion yuan in subsidies to raise benefits for entitled groups. Eight billion yuan in subsidies has also been appropriated to continue carrying out policy-mandated closures or bankruptcies of state-owned enterprises.

We have appropriated 39.717 billion yuan of employment funds for continuing to implement a more active employment policy (adding employment funding listed in other parts of the budget raises the total amount to 43.267 billion yuan). Policies to support employment that would have expired at the end of 2009 will be extended for one year and will be adjusted and improved based on changes in the employment situation. We will encourage college graduates to take jobs in small and medium-sized enterprises, at the community level, and in the central and western regions. We will encourage people to find jobs on their own and start their own businesses. We will support skills training, create public service jobs, and provide greater assistance to low- and zero-employment households.

6) The appropriation for housing spending is 99.258 billion yuan, up 1.4%. This figure consists of 37.658 billion yuan of central government spending and 61.6 billion yuan of transfer payments to local governments. We have appropriated 63.2 billion yuan for low-income housing, an increase of 8.144 billion yuan or 14.8%, which will be used to build more low-rent and other low-income housing; resolve the housing problems of 3.75 million low-income urban families; renovate run-down areas in cities, in forests, on reclaimed land, and near coalmines; carry out trials on renovating ramshackle houses in rural areas; and build permanent housing for nomads in ethnic minority areas. We have appropriated 36.058 billion yuan for housing reform, a decrease of 6.818 billion yuan. This decrease is largely due to a smaller number of demobilized soldiers and retirees being entitled to housing allowances.

7) The appropriation for spending on agriculture, forestry, and water conservancy is 377.894 billion yuan, an increase of 26.77 billion yuan or 7.6%, and 1.3 percentage points higher than the average increase in total expenditures in the central budget. This figure consists of 32.195 billion yuan of central government spending and 345.699 billion yuan of transfer payments to local governments. We have appropriated 83.5 billion yuan in general subsidies for agricultural supplies. We have appropriated 20.4 billion yuan to subsidize the purchase of superior varieties of crops, introduce subsidies for planting superior varieties of highland barley, carry forward the pilot program for subsidizing the purchase of superior varieties of peanuts, and gradually improve implementation procedures. We have appropriated 14.49 billion yuan to improve the system of subsidies for purchasing agricultural machinery and tools, and for increasing the scope of subsidies and extending them to more types of machinery and tools. We have appropriated 8 billion yuan to stimulate the development of modern agriculture and industries with unique local advantages. We will support implementation of the plan to increase grain production capacity by 50 million tons nationwide. We have appropriated 19 billion yuan for overall agricultural development to improve average- and poor-yield farmland, nurture high-yield farmland, promote industrialized agricultural operations, and improve the overall grain and agricultural production capacity, with the focus on main grain-producing areas. We have appropriated 22.23 billion yuan to poverty alleviation and development in rural areas. We have appropriated 10.32 billion yuan to subsidize insurance premiums for crops, breeding pigs, and dairy cows. We have appropriated 115.01 billion yuan to strengthen agricultural infrastructure, specifically to finish reinforcing large and medium-sized reservoirs, build auxiliary facilities, and upgrade water-saving equipment in large and medium-sized irrigated areas, and upgrade rural power grids. We will further increase the number of designated counties where small water conservancy facilities will be built, and expand the area in which major national water and soil conservation projects are built. We will continue to carry out methane projects in rural areas, and make drinking water safe for 60 million rural people. We will improve the system of operating expenses in village-level organizations, comprehensively clear up and pay off debts incurred from providing compulsory education in rural areas, and improve the government award and subsidy system for village-level public works projects, the launching of which is determined by the villagers through deliberation.

8) The appropriation for spending on land, resources, and meteorology is 33.625 billion yuan, an increase of 9.187 billion yuan or 37.6%. This is due to a considerable increase in revenue from fees for mineral prospecting and mining rights and from mineral resource compensation fees, which are required by relevant regulations to be used exclusively for exploring and utilizing mineral resources and improving the geological environment in mining areas. This figure consists of 13.132 billion yuan of central government spending and 20.493 billion yuan of transfer payments to local governments.

9) The appropriation for environmental protection spending is 141.288 billion yuan, an increase of 26.108 billion yuan or 22.7%. This figure consists of 5.526 billion yuan of central government spending and 135.762 billion yuan of transfer payments to local governments. We have appropriated 83.3 billion yuan for energy conservation and pollution reduction to promote the development of low-carbon technology; support retrofitting energy-conserving technology, retiring backward production facilities, making buildings more energy-efficient, and developing motor vehicles powered by new energy sources; expand the project to promote products that conserve energy and benefit the people to include energy-efficient air-conditioners and electric motors; strengthen heavy-metal pollution treatment and prevention, and control water pollution in major watersheds; improve environmental monitoring and supervision; build sewer lines to complement urban wastewater and garbage treatment facilities and carry out major pollution reduction projects; and help improve all aspects of the rural environment and carry out rural ecology demonstration projects. We have appropriated 10.9 billion yuan to implement the Golden Sun Project to promote the development of renewable energy. We have appropriated 36.526 billion yuan to invigorate major forestry projects, improve the ecosystems of grasslands, and consolidate the results achieved in returning farmland to forests. We will encourage imports of key energies, resources, and raw and semi-finished materials, and strictly control exports of resource products and products whose production is energy-intensive and highly polluting. We will support the implementation of the National Climate Change Program.

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Editor: Xiong Tong
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