Finance Minister on Execution of 2001 Budgets

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Last updated at: (Beijing Time) Wednesday, March 06, 2002

Finance Minister on Execution of 2001 Budgets

In 2001, China's fiscal revenue and expenditures both exceeded the budget targets, and the deficit of the central authorities was kept within the budgeted size.

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In 2001, China's fiscal revenue and expenditures both exceeded the budget targets, and the deficit of the central authorities was kept within the budgeted size.

This was announced by Finance Minister Xiang Huaicheng, in his report on the implementation of the central and local budgets for 2001 and on the draft central and local budgets for 2002, delivered at the current session of the National People's Congress Wednesday.

According to the minister, total revenue for the whole country in 2001 amounted to 1.6371 trillion yuan (excluding revenue from generation of debt, both here and below), 161.1 billion yuan over the budgeted figure and an increase of 297.6 billion yuan or 22.2 percent over that of the previous year.

Expenditures for the whole country totaled 1.8844 trillion yuan, 148.6 billion yuan over the budgeted figure and an increase of 295. 7 billion yuan or 18.6 percent over that of the previous year. Total expenditures exceeded revenue, leaving a deficit of 247.3 billion yuan.

Total revenue in the central budget for 2001 was 917.1 billion yuan, 74.8 billion yuan over the budgeted figure and an increase of 158.3 billion yuan or 20.9 percent over that of the previous year. This figure includes 857.8 billion yuan in revenue collected by the central government, 74.8 billion yuan over the budgeted figure, and 59.3 billion yuan turned over to the central government by local authorities, the same as the budgeted figure.

Total expenditures in the central budget for 2001 amounted to 1. 1769 trillion yuan, 74.8 billion yuan over the budgeted figure. This figure includes 575.4 billion yuan of expenditures for the central government, 9.1 billion yuan less than the budgeted figure, and 601.5 billion yuan in the form of subsidies for local authorities, 83.9 billion yuan over the budgeted figure.

Expenditures in the central budget exceeded revenue, leaving a deficit of 259.8 billion yuan, the same as the figure approved at the Fourth Session of the Ninth National People's Congress.

Total revenue in the local budgets in 2001 came to 1.3808 trillion yuan, 170.2 billion yuan over the budgeted figure and an increase of 273.7 billion yuan or 24.7 percent over that of the previous year. This figure includes 779.3 billion yuan in revenue collected by local authorities, 86.3 billion yuan over the budgeted figure, and 601.5 billion yuan in subsidies granted to local authorities by the central government, 83.9 billion yuan over the budgeted figure.

Total expenditures in the local budgets amounted to 1.3683 trillion yuan, 157.7 billion yuan over the budgeted figure. This figure includes 1.309 trillion yuan of expenditures in the local budgets, 157.7 billion yuan over the budgeted figure, and 59.3 billion yuan turned over to the central government, the same as the budgeted figure.

Total local revenue exceeded expenditures, resulting in a surplus of 12.5 billion yuan. In addition, central revenue from generation of debt in 2001 totaled 460.4 billion yuan. Of this debt revenue, 199.9 billion yuan was used for servicing domestic and foreign debt, 259.8 billion yuan for covering the deficit for 2001, and 700 million yuan for supplementing the central budget debt repayment fund.

Total revenue from the funds controlled by the central government in 2001 came to 105.3 billion yuan and total expenditures by the central government taken from the above funds amounted to 105.3 billion yuan.

These figures may change a little when the final calculations are made for the central and local budgets, Xiang noted.

He said that central and local revenues increased considerably and some items of expenditures varied greatly from the budgeted amounts.

Total national revenue in 2001 was up 22.2 percent over that of the previous year. This was due to steady economic growth, continued improvement in the performance of enterprises, efforts to further tighten tax collection and management and a number of special factors which led to revenue increase.

The vehicle purchase surcharge was converted into the vehicle purchase tax and put under budgetary control, resulting in a revenue increase of 26.6 billion yuan.

Receipts from reduction of state holdings in listed companies became a special item of revenue turned over to state finance, resulting in an increase of 12.2 billion yuan, consisting mainly of 11 billion yuan of income from reduction of state shares in companies listed on overseas stock markets.

The People's Bank of China turned over 18.8 billion yuan of revenue from previous years to the state.

With the exception of special factors which led to revenue increase, calculated according to comparable factors, revenue for the whole country in 2001 increased by 17.9 percent over that of the previous year, and revenue in the central budget was up 14.5 percent.

Revenue in the central budget for 2001 exceeded the budgeted figure by 74.8 billion yuan, and total revenue in the local budgets exceeded the budgeted figure by 86.3 billion yuan.

In 2001, the extra revenue in the central budget was mainly allocated for the following purposes: 8.6 billion yuan (increased revenue from collection of the vehicle purchase tax) for increased transportation expenditures, 31 billion yuan to subsidize national social security funds, 30 billion yuan to increase capital construction funding and 5.2 billion yuan to increase the wages and salaries of employees in government departments and institutions.

Extra revenue in local budgets was mainly used to pay the overdue wages and salaries of employees in government departments and institutions, raise the wages and salaries of such employees in compliance with a relevant policy adopted in the fourth quarter of 2001, increase subsidies for social security, guarantee funding for key projects in education, science and technology, agriculture and protection of the ecological environment and support reform of the grain distribution system.

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