4. Main expenditure items provided for in the central budget

There is only a slight projected increase in the disposable revenue of the central government in 2010, but spending will increase 6.3%. The plans for expenditures call for strictly controlling general expenditures; lowering administrative costs; and giving top priority to ensuring funding for key items such as agriculture, education, social security, employment, and low-income housing. To help NPC deputies review the budget and to highlight expenditure items more clearly, we have adjusted their classification to make them more specific. The main expenditure items including central government spending and transfer payments to local governments are as follows.

1) The appropriation for education spending is 215.99 billion yuan, an increase of 17.851 billion yuan or 9%, and 2.7 percentage points higher than the average increase in total expenditures in the central budget. This figure consists of 61.035 billion yuan of central government spending and 154.955 billion yuan of transfer payments to local governments. We have appropriated 73.15 billion yuan to further improve the mechanism to guarantee funding for rural compulsory education, implement the policy to exempt urban students receiving compulsory education from tuition and miscellaneous fees, and ensure that children of rural migrant workers have equal access to compulsory education in cities. We have appropriated 19.78 billion yuan in subsidies to implement a performance-based salary system in rural schools providing compulsory education. Six billion yuan in subsidies has been appropriated to implement the policy of exempting rural students in secondary vocational schools whose families have financial difficulties and students in such schools who are studying agriculture-related majors from paying tuition. We have appropriated 10 billion yuan to support projects to renovate rural junior secondary school buildings in the central and western regions and ensure the safety of primary and secondary school buildings nationwide. We have appropriated 22.6 billion yuan to implement policies to provide scholarships and grants to students from poor families and offer interest-subsidized state loans to students. We will strengthen the development of pre-school education and special education schools. We have appropriated 11.6 billion yuan to continue to experiment with reducing the debt burden of central government institutions of higher learning, and launch a new phase of the May 1998 Program for developing higher education. We have appropriated 42.6 billion yuan to support the 211 Project and the development of higher education in central and western regions in order to raise the quality of higher education. Ten billion yuan has been appropriated to implement the Outline of the National Medium- and Long-Term Program for Education Reform and Development.

2) The appropriation for science and technology spending is 163.285 billion yuan, an increase of 12.083 billion yuan or 8%, and 1.7 percentage points higher than the average increase in total expenditures in the central budget. This figure consists of 159.719 billion yuan of central government spending and 3.566 billion yuan of transfer payments to local governments. We have appropriated 30.19 billion yuan in the budget to implement major science and technology projects. We have appropriated 110.116 billion yuan to support basic research, research in cutting-edge technologies, research for public benefit, and R&D on major, generic, key technologies. We will expand trials of independent research on and production of major scientific research equipment. We will create new ways to invest in science and technology; promote intimate integration of the efforts of enterprises, universities, research institutes, and end-users; and become better able to facilitate progress in science and technology. We will improve the income distribution system so that better fosters the application of scientific and technological advances. We will encourage imports of key equipment and parts, and advanced technologies.

3) The appropriation for spending on culture, sports, and media is 31.449 billion yuan, a decrease of 1.9%. This figure consists of 15.796 billion yuan of central government spending and 15.653 billion yuan of transfer payments to local governments. The project included in the Eleventh Five-Year Plan to extend radio and TV coverage to all villages has already been basically completed, and spending in this area will decrease accordingly. However, expenditures in other areas will increase by 9.5%. These include continuing to provide free access to museums and memorial halls, implementing major cultural programs such as the national shared database for cultural information and resources, improving the protection of our cultural heritage, strengthening the broadcasting capability of the news media, giving greater support to the development of the cultural industry, actively supporting reform of the cultural management system, and focusing on transforming 148 commercial publishers affiliated to central government departments or agencies into enterprises.