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Full Text: Report on China's central, local budgets

Updated: 2011-03-18 14:58
( Xinhua)

4. Implementation of a proactive fiscal policy

We conscientiously implemented a proactive fiscal policy, spurred the national economy to continue to develop in the direction anticipated by the exercise of macro-control, and further consolidated the positive momentum of the economy.

We increased urban and rural incomes and boosted consumer demand. We increased subsidies to farmers, strengthened agricultural infrastructure and overall agricultural production capacity, and raised rural incomes. We raised subsidies for urban and rural recipients of subsistence allowances, enterprise retirees and entitled groups, and increased people' s consumption capacity. We continued to implement the policies to encourage consumption, such as those that encourage rural residents to purchase home appliances and motor vehicles and people to trade in old home appliances and motor vehicles for new ones.

We allocated and used government public investment and optimized its structure. On the basis of overall plans for using appropriations from the public finance budget, revenue from government-managed funds, and income from state capital operations, the central government spent 1.071 trillion yuan on public investment, which mainly went to developing agricultural infrastructure and projects meant to improve the wellbeing of rural residents; education, health and other social undertakings; low-income housing; energy conservation, emissions reductions and ecological improvement; and innovation and restructuring. We again issued 200 billion yuan worth of government bonds on behalf of local governments, and gave top priority in using these funds to carrying forward and completing public welfare projects.

We implemented a policy of structural tax reduction, and guided enterprise investment and consumer spending. We consolidated progress in VAT reform and the reform of taxes and fees on refined petroleum products. We implemented a preferential income tax policy for some small enterprises with low profits. We reduced the purchase tax on passenger vehicles with engine displacement of 1.6 liters or less to 7.5%. We continued to implement all tax and fee reduction and exemption policies, and tightened management over the examination and approval of administrative fees and projects financed through government-managed funds.

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