The 2002 central and local budgets were implemented satisfactorily,
with a deficit controlled at the figure as budgeted, Minister of
Finance Xiang Huaicheng said Thursday.
He
was presenting the Report on the Implementation of the Central and
Local Budgets for 2002 and Draft Budgets for 2003 to the on-going
First Session of the 10th National People's Congress.
2002 Deficit Controlled As Budgeted
The 2002 central and local budgets were implemented satisfactorily,
with a deficit controlled at the figure as budgeted, Xiang
Huaicheng said.
The total national financial receipts amounted to 1.8914 trillion
yuan, 89.9 billion yuan over the budgeted figure, while its total
expenditures reached 2.2012 trillion yuan, 89.9 billion yuan over
the budgeted figure.
The total receipts of the central finance in 2002 was 1.102
trillion yuan, 37.4 billion yuan over the budgeted figure, while
their expenditures amounted to 1.4118 trillion yuan, 37.4 billion
yuan over the budgeted figure, leaving a deficit of 309.8 billion
yuan, the same as budgeted.
The total receipts of local finances in 2002 stood at 1.5886
trillion yuan, 58.2 billion yuan over the budgeted figure, while
their total expenditures amounted to 1.5886 trillion yuan, 58.2
billion yuan over the budgeted figure, well balanced.
10 Billion Yuan More Deficit Budgeted for 2003
China's deficit for 2003 is budgeted to be 10 billion yuan more
than in 2002, said Xiang Huaicheng.
The deficit for 2002 was 309.8 billion yuan.
Xiang told the top legislature body that the total receipt of the
central finance is budgeted to be 1.194 trillion yuan, 57.5 billion
yuan or 5.1 percent more than in 2002 and the total expenditure is
budgeted at 1.5138 trillion yuan, 67.5 billion yuan or 4.7 percent
more than in 2002, leaving a deficit of 319.8 billion yuan, 10
billion more than in 2002.
The deficit, plus the domestic and foreign debts overdue, will
bring the total debts of the central finance up to 640.4 billion
yuan.
The total receipt of local finances for 2003 is budgeted at 1.7105
trillion yuan, 121.9 billion or 7.7 percent more than in 2002 and
their total expenditure is budgeted at 1.7105 trillion yuan, 121.9
billion or 7.7 percent more than in 2002.
Putting the budgets of the central and local finances together, the
total national receipt in 2003 will be 2.0501 trillion yuan, 158.7
billion or 8.4 percent more than in 2002 and the national total
expenditure will be 2.3699 trillion yuan, 168.7 billion or 7.7
percent more than in 2002.
Defense Spending up 9.6% This Year
The Chinese government has planned a 185.3 billion yuan budget for
national defense in 2003, a 9.6 percent increase over the figure
for the previous year.
Xiang made this proposal in his report on the Implementation of the
Central and Local Budgets for 2002 and on the Draft Central and
Local Budgets for 2003 at the First Session of the 10th National
People's Congress.
The increase has been proposed with a view to adapting to changes
in the international situation, safeguarding China's national
security and sovereignty and territorial integrity and raising the
combat effectiveness of the armed forces in fighting wars to defend
the country with the use of high technology, the minister said.
Further Funding Agriculture and Rural Areas
China's central government will further increase funding for
agriculture and rural economic and social development, said Xiang
Huaicheng. The minister said that accelerating agricultural and
rural economic and social development is essential to building a
well-off society in an all-round way, maintaining sustained, rapid
and sound development of the national economy and ensuring
long-term stability of the country.
The central authorities have decided that in addition to allocating
more treasury bond funds to rural areas, experimentation with the
reform of taxes and administrative charges will be extended to all
rural areas in 2003, according to the minister.
Funds totaling 30.5 billion yuan will be specially transferred from
the central budget to subsidize this reform, an increase of 6
billion yuan over 2002.
In
addition, the central financial authorities will continue to
increase the budgetary funds for the construction of
infrastructural facilities, ecological improvement, rural
anti-poverty endeavor, spread of improved strains of crops,
establishment of a quality and safety standard system and an
inspection system for agricultural products, and the strategic
restructuring of agriculture.
China to Increase Budgetary Spending for Social Security
The Ministry of Finance proposes that expenditures for social
security programs should be expanded in 2003, saying that spending
on social security programs will be increased to help urban
residents in straitened circumstances meet their basic living needs
and safeguard the immediate interests of the general public.
According to the minister, the increased budgetary expenditures are
to be used in areas as follows:
An
additional 8.4 billion yuan will be used to increase the basic
pensions for retirees from state-owned enterprises, the retirement
benefits of veteran cadres who joined the revolutionary ranks in
the early days of New China and pensions for older ex-service
persons in rural areas.
An
extra 4.6 billion yuan will be allocated to implement the policy of
doubling the subsistence allowances for those urban residents
living below the poverty line, and an extra 4.7 billion yuan to
implement the policy of subsidizing reemployment programs. In
addition, the government will continue to allocate 11 billion yuan
to subsidize the bankruptcy of enterprises according to law.
According to the minister, expenditures for social security
programs from the central budget for 2002 came to 136.2 billion
yuan, an increase of 38.6 percent over the previous year.
In
addition, financial authorities cooperated with competent
government departments to tighten collection, management and
supervision of social security funds and improve the method of
making special transfer payments for social security and the system
for managing the special financial accounts for subsidies under
social security programs.
The minister noted that experimentation with the reform of social
insurance fees collected by tax organs was extended to 16
provinces.
In
addition, he said, financial authorities took an active part in and
gave support to the reform of the basic medical insurance system
for urban employees and experimentation with the reform to improve
the urban social security system in Liaoning and other
provinces.
All this promoted smooth implementation of the reforms, he
said.
Statistics show that basic pensions for retirees from state-owned
enterprises and living allowances for workers laid off from
state-owned enterprises who had registered with reemployment
service centers were basically paid on time and in full as of the
end of 2002. The number of urban residents who received subsistence
allowances rose from 1.84 million at the end of 1998 to 20.6
million at the end of 2002.
This helped maintain social stability, he stressed.
In
the past five years, the central financial authorities have
accumulated 124.2 billion yuan in the national social security
fund. This has provided an important financial means to prepare the
country for possible emergency.
(China.org.cn March 6, 2003)