Total combined revenue in the draft central and local budgets for 2008 is estimated at 5.8486 trillion yuan, 14 percent higher than 2007. Total expenditure amounts to 6.0786 trillion yuan, a rise of 22.6 percent. This actually indicates a slowing in the rate of growth of government revenue, said Professor Liu Shangxi with the Research Institute for Fiscal Science.
The central government deficit is only 180 billion yuan. More money is being allocated to education, agriculture and social security etc. So the growth in taxation is simply redistributing national income, Liu said.
Fiscal transparency and public supervision are basic requirements for building sound public finances. The purpose of raising government revenue is to provide products and services to the public.
China began reforming its public finances in 1998. At a press conference on March 18, Premier Wen Jiabao said he was resolved to press ahead with public finance reform during his five-year tenure to ensure the people's money is spent to serve the people's needs.
But spending 3.4 trillion yuan of revenue properly and efficiently is a big challenge for managers.
According to Hu Jinglin, the government is determined to improve the budgetary management system and the way surplus revenue in the central budget is used.
"We have included pictures and graphs in the budget report this year to make it clearer and easier to understand," said Hu. The budget report for the first time also included a separate chapter describing government work to support agriculture, rural areas and farmers.
(China.org.cn by Zhang Ming'ai and Wu Nanlan, April 24, 2008)