Implementation of the Central and Local Budgets in 2018 and Publication of the Draft Report in 2019

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 Implementation of the Central and Local Budgets in 2018 and Publication of the Draft Report in 2019


Xinhua News Agency, Beijing, March 5, by authorization of the State Council, on March 5, the Ministry of Finance submitted to the Second Session of the Thirteenth National Peoples Congress for review of the Report on the Implementation of the Central and Local Budgets in 2018 and the Draft Central and Local Budgets in 2019. The summary is as follows:

I. Implementation of the Central and Local Budgets in 2018

The implementation of central and local budgets is good.

(1) General public budget revenue and expenditure in 2018.

1. National general public budget.

The national general public budget revenue was 18335.184 billion yuan, which was 100.1% of the budget, an increase of 6.2% over the same caliber in 2017 (the same below). Adding in the transferred funds and the use of carry-over balances of 1477.277 billion yuan (including the central and local finance from the budget stabilization adjustment fund, the government-based fund budget, the state-owned capital operating budget, and the use of carry-over balances of local finance), the total income is 198.124 billion yuan. The expenditure of the national general public budget was 22090.607 billion yuan, 105.3% of which was completed, an increase of 8.7%. With the addition of 101.854 billion yuan of the Central Budget Stabilization and Adjustment Fund, the total expenditure was 22192.461 billion yuan. The total revenue and expenditure are balanced, with a deficit of 2380 billion yuan, which is equal to the budget.

2. General public budget of the central government.

The general public budget revenue of the central government was 8544.734 billion yuan, which was 100.1% of the budget, an increase of 5.3%. In addition, 213 billion yuan was transferred from the Central Budget Stabilization and Adjustment Fund, 32.3 billion yuan was transferred from the Central Governments Fund Budget and the Central State-owned Capital Operation Budget, and the total revenue was 8790.34 billion yuan. The general public budget expenditure of the central government amounted to 10,238.18 billion yuan, 99.1% of which was completed, an increase of 7.7%. Adding 101.854 billion yuan to the Central Budget Stabilization and Adjustment Fund, the total expenditure was 1034.34 billion yuan. The total revenue and expenditure are balanced, and the central fiscal deficit is 1550 billion yuan, which is equal to the budget.

In 2018, the central reserve budget was 50 billion yuan, and the actual expenditure was 1.748 billion yuan. It was mainly used to support local efforts to strengthen the prevention and control of swine fever in Africa. The remaining 48.252 billion yuan was transferred to the Central Budget Stabilization and Regulation Fund. At the end of 2018, the balance of the Central Budget Stability Adjustment Fund was 376.399 billion yuan.

3. Local general public budget.

Local general public budget revenue was 1675.7849 billion yuan, of which the income at the corresponding level was 9790.450 billion yuan, an increase of 7%, and the central government revenue from tax return and transfer payment was 6967.399 billion yuan. In addition, the local finance transferred funds from the local budget stabilization adjustment fund, the government fund budget and the state-owned capital operation budget, and used the carry-over balance of 123.977 billion yuan, with a total income of 1789.826 billion yuan. Local general public budget expenditure was 188.826 billion yuan, an increase of 8.7%. The total revenue and expenditure are balanced, and the local fiscal deficit is 830 billion yuan, which is equal to the budget.

(2) Budget revenue and expenditure of government funds in 2018.

The national government fund income is 7540.450 billion yuan, an increase of 22.6%. Expenditures related to government funds nationwide amounted to 80,562.07 billion yuan, an increase of 32.1%.

The central governments fund income was 403.265 billion yuan, 104.4% of the budget, an increase of 4.2%. The central government spent 402.155 billion yuan on funds, 94.7% of the budget was completed, an increase of 8.4%.

The income of local government funds at the basic level reached 7137.185 billion yuan, an increase of 23.8%, of which 6509.585 billion yuan came from the transfer of the right to the use of state-owned land. Local government fund-related expenditures amounted to 7747.278 billion yuan, an increase of 32.9%, of which 6994.104 billion yuan was spent on income related to the transfer of the right to the use of state-owned land.

(3) Budget revenue and expenditure of state-owned capital operation in 2018.

The national budget revenue of state-owned capital operation was 289.995 billion yuan, an increase of 9.8%. The national budget expenditure on state-owned capital operation is 215.926 billion yuan, an increase of 6.7%.

The central governments state-owned capital operation budget revenue was 132.531 billion yuan, 96.3% of the budget, an increase of 1.6%. The central government spent 111.173 billion yuan on state-owned capital operation budget, 95.1% of which was completed, an increase of 10.1%.

Local state-owned capital operating budget revenue at the corresponding level was 157.464 billion yuan, an increase of 17.8%. The budget expenditure of local state-owned capital operation was 113.441 billion yuan, down by 9.2%.

(4) Budget revenue and expenditure of social insurance funds in 2018.

The income of the national social insurance fund was 7264.922 billion yuan, an increase of 24.3%. After excluding the basic old-age insurance of institutions and institutions, the same caliber increased by 7.3%. Among them, the premium income was 5254.32 billion yuan, and the financial subsidy income was 1677.683 billion yuan. The expenditure of the national social insurance fund was 6458.645 billion yuan, an increase of 32.7%. After excluding the basic old-age insurance of institutions and institutions, the same caliber increased by 12.7%. The balance of revenue and expenditure was 806.277 billion yuan, and the rolling balance at the end of the year was 8633.713 billion yuan.

(5) Implementation of major fiscal and taxation policies and key financial work in 2018.

We will vigorously implement tax reduction and fee reduction. Improve the value-added tax system. Implement the reform of personal income tax. Increase tax support for small and micro enterprises. Encourage enterprises to increase R&D investment. Adjust and improve the import and export tax policy. We will further clean up and standardize fees for enterprises involved.

Promoting the three key battles has achieved remarkable results. Strengthen the prevention and control of local government debt risk. We will vigorously support poverty alleviation and fortification. Strengthen the prevention and control of pollution.

Support the deepening of structural reform on the supply side. Promote the capacity building of scientific and technological innovation. Support the transformation and upgrading of manufacturing industry. Stimulate the vitality of entrepreneurship and innovation. Implementing the key task of three go, one fall and one supplement. Promote the coordinated development of urban and rural areas.

The peoples livelihood has continued to improve. Implement a more active employment policy. Promote educational reform and development. Strengthen basic livelihood security.

Fiscal and taxation reform has been pushed forward in depth. Speed up the reform of the financial system. Deepen the reform of budget management system. Improve the tax system. Deepening the reform of state-owned enterprises.

The level of financial management has continued to improve. Strengthen the basic management work. Serious financial discipline. We should conscientiously rectify audit findings.

Overall, the implementation of the 2018 budget is good, and new progress has been made in financial reform and development, which has effectively promoted the sustained and healthy development of the economy and society. This is the result of the strong leadership of the Party Central Committee with Comrade Xi Jinping as its core, the scientific guidance of the socialist ideology with Chinese characteristics in the new era of Xi Jinping, the supervision and guidance of the National Peoples Congress, the CPPCC and its representatives, and the joint efforts of all regions, departments and people of all nationalities.

Draft Central and Local Budgets for 2019

(1) Analysis of the fiscal revenue and expenditure situation in 2019.

From the perspective of fiscal revenue situation, the growth rate of fiscal revenue in 2019 is expected to slow down due to the increasing downward pressure of the economy, the implementation of larger-scale tax and fee reduction, and the overturning of the last years partial tax and fee reduction policy. From the perspective of the financial expenditure situation, there is a great demand for financial funds in various fields. We should support deepening structural reform on the supply side, fighting three key battles well, implementing the strategy of rural revitalization, strengthening scientific and technological innovation and tackling key technological problems, building and upgrading several projects to prevent and control natural disasters, increasing investment in basic livelihood areas, supporting foreign and national defense, and strengthening financial support capacity at the grass-roots level. It needs to be guaranteed with emphasis. Comprehensive analysis shows that the fiscal revenue situation in 2019 is more severe and the pressure of revenue and expenditure balance is more prominent. We must firmly establish the bottom line thinking, strengthen the awareness of distress, improve the ability of risk prevention and control, balance the relationship between stable growth and risk prevention, further strengthen the policy and fund coordination, and maintain fiscal sustainability while increasing tax reduction and expenditure reduction efforts and focusing on ensuring key expenditures.

(2) Overall requirements for budget preparation and financial work in 2019.

The General requirements of the budget preparation and financial work in 2019 are: under the strong leadership of the Party Central Committee with Comrade Xi Jinping as its core, under the guidance of the socialist ideology with Chinese characteristics in the new era of Xi Jinping, to fully implement the spirit of the Nineteenth Congress of the Party and the Second and Third Plenary Sessions of the Nineteenth Central Committee, to comprehensively promote the overall layout of five in one, to coordinate and promote the strategic layout of four in an all-round way and to maintain stability. We should strive for the general tone of work, adhere to new development concepts, promote high-quality development, adhere to supply-side structural reform as the main line, deepen market-oriented reform, expand high-level opening up, accelerate the construction of a modern economic system, continue to fight three major battles, strive to stimulate micro-main vitality, innovate and improve macro-control, and comprehensively promote stable growth, reform and coordination. Construction, benefiting peoples livelihood and risk prevention work. Active fiscal policies should enhance efficiency, implement larger tax and fee cuts and substantially reduce VAT tax rates; optimize the structure of fiscal expenditure, establish the idea of over-tight days, strictly reduce general expenditure, increase support for key areas, improve the efficiency of fund allocation and effectively reduce the burden of enterprises; accelerate the establishment of a modern financial system, establish clear powers and responsibilities, financial resources. Coordinating and balancing regional financial relations between central and local governments; implementing budget performance management in an all-round way, speeding up the establishment of an all-round, whole-process and full-coverage budget performance management system; strengthening local government debt management, increasing the scale of local government special bonds by a large margin, actively preventing and resolving local government debt risks, and promoting sustainable and healthy economic development and social stability as a whole. The completion of a well-off society in an all-round way laid a decisive foundation for celebrating the 70th anniversary of the founding of the Peoples Republic of China with outstanding achievements.

According to the above requirements, we should focus on five aspects: First, we should increase tax reduction and fee reduction efforts to promote the development of real economy. Second, increase investment in key areas and improve the accuracy of expenditure. Thirdly, we should set up the idea of living on tight days and strictly control general expenditure. Fourth, deepen the reform of the fiscal and taxation system and speed up the establishment of a modern financial system. Fifth, we should open up front doors for local regulation of debt raising and strictly block back doors for illegal and illegal debt raising.

(3) The fiscal policy of 2019.

Active fiscal policies in 2019 should enhance efficiency, play a good role in counter-cyclical regulation, enhance the prospective, pertinence and effectiveness of regulation and control, and promote high-quality economic development.

Strengthen is reflected in the implementation of a larger scale of tax cuts and fee cuts and increased expenditure.

Improve efficiency is reflected in improving the allocation efficiency and use efficiency of financial funds.

Major revenue and expenditure policies for 2019:

1. Efforts should be made to support the deepening of structural reform on the supply side.

We should stick to the supply-side structural reform as the main line, adopt more reform measures, use more market-oriented and legalized means, and work hard on consolidation, enhancement, promotion and smoothness.

Consolidate the achievements of three go, one fall and one supplement. Enhance the vitality of micro-subject. Improve the level of industrial chain. Unobstruct the national economic cycle.

2. Continue to support the three major battles.

Preventing and defusing financial risks. Adhere to both dredging and congestion, effectively prevent and control the risk of implicit debt of local governments. Continue issuing local government bonds to replace debts that meet the policy requirements, and fully complete the replacement of stock debts. We should properly handle the stock of implicit debt, urge high-risk cities and counties to reduce the scale of implicit debt as soon as possible and reduce the level of debt risk.

We will vigorously support poverty alleviation and fortification. The special poverty alleviation funds allocated by the central government amounted to 126.095 billion yuan, an increase of 18.9%. The increase was mainly used in the deep poverty-stricken areas. Other related transfer payments and debt quota allocation also continue to tilt towards poor areas, especially those in deep poverty areas. The results of the allocation of poverty alleviation funds at provincial, municipal and county levels will be made public. The arrangement of poverty alleviation projects at the rural level and the use of funds will be announced and publicized. We will resolutely prevent the misappropriation of poverty alleviation funds.

Actively support pollution prevention and control. Winning the Blue Sky Defense War will be the top priority. The central government allocated 25 billion yuan to prevent and control air pollution, an increase of 25%. The elimination of black and odorous water bodies in cities will be the focus of water pollution control. Funds for water pollution prevention and control will be allocated to 30 billion yuan, an increase of 45.3%. We will support the full implementation of the plan of action for the prevention and control of soil pollution, and allocate 5 billion yuan in funds for the prevention and control of soil pollution, an increase of 42.9%.

3. Stick to innovation and lead development.

Promote the high-quality development of manufacturing industry. Emphasizing on manufacturing industry, we will reduce the VAT tax rate substantially, reduce the applicable tax rate of manufacturing industry from 16% to 13%, gradually establish the system of end-of-term withholding tax rebate, and effectively reduce the cost burden of enterprises. Expanding the preferential policy of accelerated depreciation of fixed assets to all manufacturing sectors.

Enhance the ability of science and technology support. Highlighting problem-oriented and demand-oriented, actively supporting basic research and applied basic research, and increasing support for breaking through key core technologies. We will increase our support for the stability of scientific research institutes and strengthen the construction of scientific and technological personnel.

4. Promote the formation of a strong domestic market.

We will focus on expanding household consumption. We will improve relevant fiscal and taxation policies, support social forces in providing services such as education, culture, sports, pension and medical care, and foster new consumption growth points.

Play a key role in investment. The central government has allocated 577.6 billion yuan for capital construction investment, an increase of 40 billion yuan over 2018. It optimizes the direction and structure of investment and strengthens performance appraisal, focusing on agriculture, countryside and farmers construction, major infrastructure construction, innovation-driven and structural adjustment, guaranteed housing projects, social undertakings and social governance, energy conservation, environmental protection and ecological construction.

More effectively play the role of local government bonds. Reasonably expand the scope of use of special bonds, scientifically and rationally arrange the regional structure and investment structure of special bonds, speed up the progress of bond issuance, give priority to raising funds for projects under construction, and prevent half-pull projects.

5. Promoting coordinated regional development.

Support the implementation of major national regional strategies. Taking the joint strategy of one belt and one road, coordinated development of Beijing, Tianjin and Hebei, Yangtze River economic belt development, Guangdong, Hongkong and Macau Bay area construction, and Yangtze River Delta regional integration development as the leading strategy, the four major plates of the western, northeast, central and eastern regions will be combined to promote the development of major regional strategy integration.

We will further enhance the equalization of basic public services among regions. We will give full play to the role of transfer payments and substantially increase the scale of transfer payments from the central government to local governments.

We will improve regional mutual assistance and benefit-sharing mechanisms. We will give full play to the role of the national co-ordination mechanism for supplementing arable land across provinces and the inter-provincial adjustment mechanism for the savings indicators linked to the increase and decrease of urban and rural construction land. All the gains will be used to consolidate the achievements of poverty alleviation and to support the implementation of the Rural Revitalization strategy.

We will promote the construction of a new type of urbanization. We will further improve the financial transfer payment system, rationally share the cost of urbanization of agricultural transfer population, and promote the full coverage of permanent population in basic public services.

6. Implement the strategy of rural revitalization.

Promote high-quality development of agriculture. We will continue to increase the central financial funds for agricultural production and development, agricultural resources and ecological protection subsidies.

Vigorously support rural construction. Focusing on rural waste sewage treatment, agricultural production waste resource utilization, toilet revolution, village appearance improvement, etc., we will support the improvement of rural human settlements environment.

Deepening agricultural and rural reform. We will accelerate the establishment of a new policy system for supporting and protecting agriculture. We will further promote the reform of the agricultural subsidy system oriented by green ecology.

7. Strengthen the protection and improvement of peoples livelihood.

Actively promote employment and entrepreneurship. Employment subsidy funds allocated by the central government amounted to 53.878 billion yuan, an increase of 14.9%. Through adjusting the expenditure structure of unemployment insurance funds and other expenditures, we will vigorously promote employment and entrepreneurship.

We will give priority to the development of education. We will consolidate the financial guarantee mechanism for compulsory education, which is unified between urban and rural areas and focuses on rural areas, support the improvement of weak links in compulsory education and the enhancement of capacity, focus on eliminating large classes in cities and towns, and strengthen the construction of small-scale rural schools and boarding schools in towns and villages. The central financial support for the development of preschool education allocated 168.5 billion yuan, an increase of 13.1%, and promoted the expansion of inclusive preschool education resources by both public and private sectors.

Improve the level of old-age security. From January 1, 2019, the basic pension standard for retirees of enterprises, institutions and institutions will be raised by an average of about 5%.

Promote the construction of healthy China. We will improve the governments investment policy in public hospitals, support the construction of regional medical centers and medical insurance information systems, and consolidate the achievements of public hospitals in eliminating drug-supplemented medicine.

Strengthen basic housing security. The central government allocated 143.3 billion yuan, an increase of 12.4%. We will support the construction of public rental housing in cities and towns and the renovation of old residential areas, and carry out pilot projects for the development of the housing rental market.

Strengthen peoples livelihood policy. The central government has allocated 27.101 billion yuan for medical aid subsidies, which has moderately improved the level of medical assistance. We will strengthen the protection of children in distress and left-behind children in rural areas. We will improve the subsidy policies for the living of disabled people in need and for the care of disabled people in a serious way.

Promote the development of cultural undertakings. The special funds allocated by the central government for the construction of local public cultural service system were 14.71 billion yuan, an increase of 14%. We will accelerate the construction of a modern public cultural service system and improve the coverage and applicability of basic public cultural services.

8. Supporting national defense, diplomacy and political work.

We will improve the system of preferential care and resettlement, ensure the treatment of retired soldiers, improve the policy of basic pension and basic medical insurance for retired soldiers, and continue to increase subsidies for retired cadres, retired resettlement and preferential care targets from the central government. We will support the diplomacy of major powers with Chinese characteristics and take a deep part in the reform and construction of the global governance system.

(4) Revenue projections and expenditure arrangements for the general public budget in 2019.

1. General public budget of the central government.

The general public budget revenue of the central government is 8980 billion yuan, an increase of 5.1% over the same caliber of implementation in 2018 (the same below). In addition, 280 billion yuan was transferred from the Central Budget Stabilization and Adjustment Fund, 39.4 billion yuan from the Central Governments Fund Budget and the Central State-owned Capital Operation Budget, with a total income of 9299.4 billion yuan. The general public budget expenditure of the central government was 11,129.4 billion yuan, an increase of 8.7%. The total revenue and expenditure offset the central fiscal deficit of 1830 billion yuan, an increase of 280 billion yuan over 2018. The balance of the Central Budget Stability Adjustment Fund is 96.399 billion yuan.

(1) Central government expenditure at the corresponding level was 3,539.5 billion yuan, an increase of 6.5%.

(2) Transfer payments to local governments amounted to 7539.9 billion yuan, an increase of 9%.

(3) The central reserve fee is 50 billion yuan, which is equal to the 2008 budget.

2. Local general public budget.

Local general public budget revenue at the corresponding level reached 10270 billion yuan, an increase of 4.9%. With the central governments transfer payment income of 7539.9 billion yuan, local finances transfer funds and use carry-over balance of 1195 billion yuan, the total revenue is 190.9 billion yuan. Local general public budget expenditure was 19,934.9 billion yuan, an increase of 6.2%. The local fiscal deficit was 930 billion yuan, an increase of 100 billion yuan over 2018, which was made up by issuing general bonds of local governments.

3. National general public budget.

In summary of the central and local budgets, the national general public budget revenue was 1925 billion yuan, an increase of 5%. In addition, 1514.4 billion yuan was transferred into the capital and carried-over balance, and the total income was 20764.4 billion yuan. The national general public budget expenditure was 235.244 billion yuan, an increase of 6.5%. The deficit was 2760 billion yuan, an increase of 380 billion yuan over 2018.

(5) Budget revenue projection and expenditure arrangement of government funds in 2019.

The central governments fund income was 419.315 billion yuan, an increase of 4%. In addition, the carrying-over income of the previous year was 35.824 billion yuan, and the total income was 455.139 billion yuan. The central government spent 45.47 billion yuan on funds, an increase of 13.1%, of which 33.95 billion yuan was spent at the corresponding level, an increase of 9.9%, and 115.161 billion yuan on local transfer payments, an increase of 23.5%. It has transferred 423 million yuan into the general public budget.

The income of local government funds at the basic level was 7375.456 billion yuan, an increase of 3.3%. Among them, the income from the transfer of the right to use state-owned land was 670.773 billion yuan, an increase of 3%. In addition, the transfer payment income of central government funds to local governments is 115.161 billion yuan, the special debt income of local governments is 2150 billion yuan, and the related income of local government funds is 9640.617 billion yuan. Local government funds related expenditure 9640.617 billion yuan, an increase of 24.4%, of which 6465.696 billion yuan, an increase of 15.3%.

In summary of the central and local budgets, the revenue of the national government funds was 7794.771 billion yuan, an increase of 3.4%. Coupled with the carry-over income of 35.824 billion yuan and the special debt income of local governments of 2150 billion yuan last year, the related income of national government funds was 9980.595 billion yuan. National government funds related expenditure was 9980.172 billion yuan, an increase of 23.9%.

(6) Budget income forecast and expenditure arrangement of state-owned capital operation in 2019.

The central governments budget revenue for state-owned capital operation was 163.811 billion yuan, an increase of 23.6%. In addition, the carrying-over income of the previous year amounted to 563 million yuan, with a total income of 164.374 billion yuan. The central governments budget expenditure on state-owned capital operation was 125.397 billion yuan, an increase of 12.8%.

Local state-owned capital operating budget revenue at the corresponding level was 17.2773 billion yuan, an increase of 9.7%. In addition, the central state-owned capital operation budget has transferred 11.8 billion yuan of local payment income, with a total income of 184.573 billion yuan. The budget expenditure of local state-owned capital operation was 126.488 billion yuan, an increase of 11.5%.

In summary of the central and local budgets, the national budget revenue of state-owned capital operation was 336.584 billion yuan, an increase of 16.1%. In addition, the carrying-over income of the previous year was 563 million yuan, and the total income was 337.147 billion yuan. The budget expenditure of state-owned capital operation in China is 240.085 billion yuan, an increase of 11.2%.

(7) Budget income forecast and expenditure arrangement of social insurance fund in 2019.

In summary of the central and local budgets, the income of the National Social Insurance Fund was 7967.754 billion yuan, an increase of 9.7%, of which the premium income was 5699.373 billion yuan and the financial subsidy income was 1946.896 billion yuan. The expenditure of the national social insurance fund was 7425.229 billion yuan, an increase of 15%. This years balance of revenue and expenditure was 542.525 billion yuan, and the year-end rolling balance was 9176.238 billion yuan.

3. Do a solid job in the development of fiscal reform in 2019

(1) Strict implementation of the Budget Law.

(2) Deepening the reform of the fiscal and taxation system.

(3) Implementing various measures for tax reduction and fee reduction.

(4) Improving the management mechanism of peoples livelihood expenditure.

(5) Implementing budget performance management in an all-round way.

(6) Supporting and cooperating with the NPC in carrying out budget review and supervision according to law.