Full text: Report on China's central, local budgets (9)

Fifth, we improved performance-based budget management. We worked hard to stress the importance of achieving results in the full course and every link of our budget management, formulated and promulgated a work plan for performance-based budget management, and made steady progress in carrying out pilot projects in this area. We also redoubled efforts to manage the implementation of budgetary expenditure, and implemented budgets more quickly. We tightened oversight of public finances, observed strict financial and economic discipline, and ensured smooth implementation of major policy decisions and plans of the central leadership.

Sixth, we dealt with suggestions and proposals. We handled a total of 3,803 suggestions and proposals in 2012. We also improved communication with NPC deputies and CPPCC National Committee members and increased efforts to translate their suggestions and proposals into policies and measures as well as concrete action.

The year 2012 was the last year of the term of this government. During the past five years, we fully implemented the policy decisions and plans of the CPC Central Committee and the State Council, strived to improve the structure of government spending, advanced reform of the fiscal and tax systems, strengthened scientific management of public finances, and made good use of its functions and role, thereby spurring steady, sound economic and social development and also giving the development and reform of public finance a new appearance.

Public finance played an effective role in macro-control. In response to the global financial crisis, finance departments comprehensively implemented a proactive fiscal policy, employed a full range of macro-control tools, and adopted a variety of well-targeted policies and measures. When formulating policies, we took a holistic and balanced approach in order to not only bolster domestic demand, particularly consumer demand, and strive to expand exports, but to increase effective supply by raising overall agricultural production capacity and supporting enterprises in developing production. We focused on imposing strong short-term macro-control but also paid attention to enhancing the sustainability of the country's development, thereby promoting steady and rapid economic development and continued improvement in people's lives. We managed public finances more scientifically, implemented policies with the proper force and pace, and kept China's deficit-to-GDP and debt-to-GDP ratios at safe levels. We strengthened supervision of local government debts, effectively managed and controlled risks, and maintained the sound operation and sustainability of public finance. From 2008 to 2012, government revenue increased at an average annual rate of 18% and totaled approximately 43.4 trillion yuan for the five-year period, 26.42 trillion yuan more than the total for the preceding five years, and government expenditure increased at an average annual rate of 20.4% and totaled approximately 46.37 trillion yuan for the five-year period, 28.65 trillion yuan more than the previous five-year period.