REPORT ON THE IMPLEMENTATION OF THE CENTRAL AND LOCAL BUDGETS FOR 2001 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2002

(Delivered at the Fifth Session of the Ninth National Peopless Congress on March 6, 2002)
Xiang Huaicheng, Minister of Finance

Fellow Deputies,I have been entrusted by the State Council to submit a report on the implementation of the central and local budgets for 2001 and on the draft central and local budgets for 2002 for your examination and approval, and also for suggestions and comments from members of the National Committee of the Chinese People's Political Consultative Conference.

A. Implementation of the Central and Local Budgets for 2001

I. The state budget for 2001 exceeded targets and the deficit in the central budget was smaller than expected.
II. Central and local revenues increased considerably and some items of expenditures varied greatly from the budgeted amounts.
III. The proactive fiscal policy was satisfactorily implemented and domestic demand was expanded and fostered.
IV. The policy on income distribution was further revised and great efforts were made to pay overdue wages to employees of local government departments.
V. Social security expenditures were further increased and the social security system was gradually improved.
VI. Investment in agriculture was further increased and the position of agriculture as the foundation of the economy was consolidated.
VII. Investment in science and education was gradually increased and the strategy of developing the country through science and education was effectively implemented.

B. The Draft Central and Local Budgets for 2002

I. Revenue is set at a reasonable level to ensure implementation of the budget.
II. The proactive fiscal policy will be conscientiously followed to boost and foster domestic demand
III. Funding for social security benefits and wages and salaries will be guaranteed to maintain social stability.
IV. Investment in agriculture, science and education is increased to promote the development of key undertakings.
V. The reform of separate management of revenue and expenditures will be deepened to standardize the collection and use of budgetary funds
VI. The reform of budgetary management will be steadily promoted to tighten budgetary control
VII. The method of sharing income tax revenue will be reformed to promote coordinated economic development of different areas.
VIII. Accounting work will be improved in accordance with the law, and the falsification of accounts will be severely dealt with.
IX. We will step up efforts to advocate a style of hard work and plain living and do everything in an economical manner.

Fellow Deputies, It will be hard to carry out our financial work and implement the budget this year. We are keenly aware of the heavy responsibilities on our shoulders. Let us rally closely around the Party Central Committee with Comrade Jiang Zemin at its core, hold high the great banner of Deng Xiaoping Theory, follow the requirements set by the important thinking of "The Three Represents", forge ahead with great confidence, work hard and conscientiously implement the budget so that we can present our outstanding achievements to the successful convocation of the Sixteenth National Party Congress.