Strong economic growth means that fiscal revenues for 2007 will
far exceed forecasts made at the beginning of the year, according
to a report by the State Council to the top legislature on
Saturday.
The extra money will be used to improve people's livelihood with
education, health care, social security on top of the government
work agenda, the report said.
Central government fiscal revenue is expected to total 2.84
trillion yuan (about 389.5 billion U.S. dollars), or 401.1 billion
yuan above the budget forecast.
In the first 11 months, central government fiscal revenue was
2.68 trillion yuan, up 37 percent over the same period last year,
statistics from the Ministry of Finance showed.
Local governments will get a windfall too, with their extra
fiscal revenue expected to reach 300 billion yuan, the report
said.
"The huge extra fiscal revenue reflects China's stable, rapid
economic growth," the report said.
By the end of the third quarter, most major economic indicators
had already outstripped 2007 targets: industrial output, total
fixed asset investment, retail sales, realized company profits and
foreign trade.
Tax revenues derived from those activities also expanded rapidly
in the first nine months. Value-added tax, import tax and
individual income tax collections rose 9.9, 10.8 and 12.9
percentage points, respectively.
Corporate income tax, business tax and deed tax collections were
up 39.2 percent, 29.7 percent and 38.4 percent year-on-year,
respectively. Those gains were 24.2 percentage points, 16.7
percentage points and 28.9 percentage points above target,
respectively.
According to the State Council, the extra fiscal revenue will be
used to improve people's livelihood with education, health care,
social security to top the agenda.
The central government will use 40 billion yuan to subsidize
farmers to raise fine breeds of livestock and plant improved
variety of crops, and to renovate agriculture infrastructure such
as roads, bridges and reservoirs, the report said.
The central government will give 21 billion yuan to subsidize
the compulsory education, 40 billion yuan to social security, 31.8
billion yuan to medical care, 29 billion yuan to scientific and
technological development and 1.1 billion yuan for cultural causes,
the report said.
The central government will use the extra revenue to offset
fiscal deficit by 45 billion yuan and keep the deficit of this year
at 200 billion yuan.
The State Council required the local governments to focus the
use of their 300 billion extra revenue on improving people's
livelihood too.
(Xinhua News Agency December 30, 2007)