The State Council issued its Report on the Implementation of the Central and Local Budgets for 2006 and the Draft Central and Local Budgets for 2007, and submitted it to deputies for review at the 5th Session of the Tenth National People's Congress on March 5.

The report outlined the 2007 budget: central government revenue will total 2,442.108 billion yuan, 318.877 billion yuan more than the previous year; central government expenditure will total 2,687.108 billion yuan, 338.882 billion yuan more than the previous year; national revenue will reach 4,406.485 yuan, up 533.423 billion; and national expenditure will reach 4,651.485 billion yuan, up 630.169 billion.

The report also outlined key focuses of central expenditure and fiscal policies:

-- continue to reduce central finance deficit, adjust the direction and optimize the way government funds are used

-- improve fiscal and tax policies supporting farmers and accelerate the construction of a new socialist countryside

-- promote mechanism and policy innovation to make schooling more accessible and affordable

-- do everything possible to ensure that medical care is accessible and affordable

-- make special efforts to solve problems related to people's basic living conditions and increase work on the employment, reemployment and social security situation

-- improve fiscal and tax policies and accelerate the transformation of economic growth modes

-- support reforms including a unified income tax for Chinese and foreign-funded enterprises and improve the structure of the socialist market economy

-- improve capacity to transfer payments and boost local governments' capacity to provide basic public services

By People's Daily Online