REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023文章源自英文巴士-https://www.en84.com/14304.html
First Session of the 14th National People’s Congress of the People’s Republic of China文章源自英文巴士-https://www.en84.com/14304.html
March 5, 2023文章源自英文巴士-https://www.en84.com/14304.html
Ministry of Finance文章源自英文巴士-https://www.en84.com/14304.html
The Ministry of Finance has been entrusted by the State Council to submit this report on the execution of the central and local budgets for 2022 and on the draft central and local budgets for 2023 to the present First Session of the 14th National People’s Congress (NPC) for your deliberation and for comments from members of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).
I. Execution of the 2022 Central and Local Budgets
The year 2022 was of great importance in the history of both the Party and the country. The 20th CPC National Congress was held successfully. It drew up a grand blueprint for turning China into a modern socialist country in all respects, charting the course for the development of the cause of the Party and the country on the new journey in the new era to achieve the Second Centenary Goal and establishing a guide to action in this regard. Over the past year, confronted with high winds and choppy waters in the global environment and faced with the challenging tasks of promoting reform, development, and stability at home, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, all localities and departments followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles from the 19th National Congress and the plenary sessions of the 19th Party Central Committee, and earnestly studied and implemented the guiding principles from the 20th National Congress.
We fully applied the decisions and plans of the Party Central Committee and the State Council and remained committed to the general principle of pursuing progress while ensuring stability. We implemented the requirements of ensuring effective Covid-19 response, economic stability, and safe development across the board, and fully and faithfully applied the new development philosophy on all fronts. We worked to create a new pattern of development, promote high-quality development, and deepen supply-side structural reform. We gave consideration to both domestic and international imperatives, responded to the Covid-19 epidemic while also promoting economic and social development, and ensured both development and security.
We rigorously executed the budgets reviewed and approved at the Fifth Session of the 13th NPC and strengthened macro regulation to respond to shocks from factors that exceeded expectations. We steadily raised the quality of development, made major advances in scientific and technological innovation, deepened reform and opening up across the board, and scored solid progress in advancing the Beautiful China Initiative. We essentially kept employment and prices stable, effectively ensured food and energy security, and met people’s basic living needs, thus maintaining economic and social stability.
Over the past year, public finance work faced multiple challenges and fiscal operations remained tight, posing great difficulties. The economy initially got off to a steady start in the first quarter, with revenue in the national general public budget increasing by 8.6%. In the second quarter, however, as influenced by the resurgence of Covid-19 and the evolving international landscape, downward pressure on the economy suddenly increased. Added to that, large-scale value-added tax (VAT) credit refund policy was applied. As a result, fiscal revenue fell sharply, with a decrease of 41.3% in the national general public budget in April. After the introduction of a package of policies and follow-up measures to stabilize the economy, the economic downturn was effectively curbed. The decline in fiscal revenue narrowed to 32.5% and 10.5% in May and June, respectively. Moreover, as the application of the VAT credit refund policy was largely completed in the first half of the year, fiscal revenue took a turn for the better in the second half. Positive growth resumed in August with an increase of 5.6%, and a faster rate of recovery was registered in the following months.
During the execution of budgets, finance departments firmly implemented the decisions and plans of the Party Central Committee and the State Council, responded proactively to changes and difficulties, and stepped up analysis and assessment of economic conditions and fiscal revenue and spending. We strengthened unified management of fiscal resources, put state assets and resources to good use through multiple avenues, and reviewed and took back carryover and surplus funds in a timely manner. We better allocated funds from the treasury, acted in strict compliance with belt-tightening requirements, and thus ensured spending on key areas such as securing people’s wellbeing. In addition, continued efforts were made to tighten fiscal discipline. The national budget over the past year was executed largely in line with the conditions of economic development, and the central government’s revenue and expenditure were consistent with budget projections, with actual expenditure slightly lower than the budgeted figure. We therefore provided essential fiscal support for effectively responding to the Covid-19 epidemic while also promoting economic and social development.
- Revenue and expenditure in the general public budget in 2022
1) National general public budget
Revenue in the national general public budget was 20.370348 trillion yuan, representing 96.9% of the budgeted figure and an increase of 0.6% compared with 2021. Revenue included tax receipts of 16.661396 trillion yuan, a decrease of 3.5%, and non-tax revenue of 3.708952 trillion yuan, an increase of 24.4%. This was mainly due to the fact that idle state-owned resources and assets were put to use, and revenue from the compensated use of them increased considerably. With the addition of 2.4541 trillion yuan of funds transferred from budget stabilization funds, budgets of government-managed funds, and budgets of state capital operations as well as utilized carryover and surplus funds, total revenue reached 22.824448 trillion yuan.
Expenditure in the national general public budget was 26.060917 trillion yuan, representing 97.6% of the budgeted figure and an increase of 6.1%. With the addition of 118.531 billion yuan used to replenish the Central Budget Stabilization Fund and 15 billion yuan transferred to budgets of government-managed funds, total expenditure reached 26.194448 trillion yuan. Total expenditure exceeded total revenue, leaving a deficit of 3.37 trillion yuan, which is consistent with the figure projected.
2) Central general public budget
Revenue in the central government’s general public budget was 9.488498 trillion yuan, representing 100% of the budgeted figure and an increase of 3.8%. Adding in 276.5 billion yuan from the Central Budget Stabilization Fund and 990 billion yuan from the budgets of central government-managed funds and central government state capital operations, total revenue came to 10.754998 trillion yuan.
Expenditure in the central government’s general public budget totaled 13.271467 trillion yuan, representing 99% of the budgeted figure and an increase of 13.3%, mainly due to the increased transfer payments to local governments. This figure includes: central government expenditures of 3.556992 trillion yuan, representing 100% of the budgeted figure and a 3.9% increase; and transfer payments to local governments of 9.714475 trillion yuan, representing 99.2% of the budgeted figure and an increase of 17.1% (or 6.8% after deducting one-time special transfer payments to support primary-level governments in implementing tax and fee cuts and ensuring key public wellbeing projects). With the addition of 118.531 billion yuan contributed to the Central Budget Stabilization Fund and 15 billion yuan transferred to the budget of central government-managed funds, total expenditure reached 13.404998 trillion yuan. Total expenditure exceeded total revenue, leaving a deficit of 2.65 trillion yuan, which is consistent with the figure projected.
Main revenue items in the central government’s general public budget: Domestic VAT revenue was 2.425505 trillion yuan, 77.1% of the budgeted figure. This was primarily due to the larger decrease in revenue as a result of the intensified application of the VAT credit refund policy. Domestic excise tax revenue reached 1.669881 trillion yuan, 111.6% of the budgeted figure, mainly because of higher taxes on refined oil products, cigarettes, and other products. Corporate income tax revenue was 2.786645 trillion yuan, 97.4% of the budgeted figure. Individual income tax revenue was 895.377 billion yuan, 96.8% of the budgeted figure. Revenue from customs duties totaled 286.029 billion yuan, 98% of the budgeted figure. Revenue from VAT and excise tax on imports came to 1.999478 trillion yuan, 109.9% of the budgeted figure, primarily due to higher prices for imported commodities and better-than-expected growth of imports in general trade.
Main expenditures in the central government’s general public budget: General public service expenditures reached 157.854 billion yuan, 104.7% of the budgeted figure. Diplomatic spending totaled 48.883 billion yuan, 97.2% of the budgeted figure. National defense spending was 1.449963 trillion yuan, 100% of the budgeted figure. Public security expenses totaled 196.464 billion yuan, 100.8% of the budgeted figure. Spending on education came to 152.426 billion yuan, 99.9% of the budgeted figure. Spending on science and technology amounted to 321.552 billion yuan, 100.9% of the budgeted figure. Spending on stockpiling grain, edible oils, and other materials was 116.934 billion yuan, 102.9% of the budgeted figure. Interest payments on debt totaled 652.399 billion yuan, 102.2% of the budgeted figure.
Central government transfer payments made to local governments: General transfer payments totaled 8.099423 trillion yuan, 98.6% of the budgeted figure. Special transfer payments reached 761.703 billion yuan, 97.2% of the budgeted figure. In addition, one-time special transfer payments to support primary-level governments in implementing tax and fee cuts and ensuring key public wellbeing projects reached 853.349 billion yuan, 106.7% of the budgeted figure.
In 2022, a total of 498 million yuan of extra revenue and 118.033 billion yuan of unspent funds in the central general public budget were contributed in full to the Central Budget Stabilization Fund. Central government reserve funds budgeted for 2022 amounted to 50 billion yuan. Of this, actual spending was 11 billion yuan, which was mainly used to support localities in carrying out drought relief and disaster mitigation. The 39-billion-yuan surplus (already included in the aforementioned 118.033 billion yuan of unspent funds) was contributed in full to the Central Budget Stabilization Fund. Adding in 510 million yuan of carryover and surplus funds from central government-managed funds, at the end of 2022, the Central Budget Stabilization Fund had a balance of 235.163 billion yuan.
3) Local general public budget
Revenue in the local general public budget was 20.596325 trillion yuan. This figure includes 10.88185 trillion yuan in local government revenue, a decrease of 2.1% compared with 2021, and 9.714475 trillion yuan in transfer payments from the central government. With the addition of 1.1876 trillion yuan transferred from local budget stabilization funds, the budgets of local government-managed funds, and the budgets of local state capital operations as well as utilized carryover and surplus funds, total revenue reached 21.783925 trillion yuan. Expenditures in the local general public budget totaled 22.503925 trillion yuan, a 6.4% increase. Total expenditure exceeded total revenue, creating a local government deficit of 720 billion yuan, which is consistent with the figure projected.