Minister Reports on 2002 Budget, Draft Budget for 2003

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Last updated at: (Beijing Time) Thursday, March 06, 2003

Minister Reports on 2002 Budget, Draft Budget for 2003

The First Session of the 10th National People's Congress (NPC), China's top legislature, began its second plenary session in the Great Hall of the People Wednesday morning. Xiang Huaicheng, minister of finance gave a report on the Implementation of the Central and Local Budgets for 2002 and on the Draft Central and Local Budgets for 2003

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China's Defense Spending up 9.6 Percent This Year

The First Session of the 10th National People's Congress (NPC), China's top legislature, began its second plenary session in the Great Hall of the People Wednesday morning.

A total of 2,894 deputies from across China attended the meeting, which is presided over by Li Tieying, an executive chairman of the presidium of the session.

Top leaders present at the meeting include Jiang Zemin and Hu Jintao.

Xiang Huaicheng, minister of finance gave a report on the Implementation of the Central and Local Budgets for 2002 and on the Draft Central and Local Budgets for 2003

China's 2002 deficit controlled as budgeted

The 2002 central and local budgets were implemented satisfactorily, with a deficit controlled at the figure as budgeted, Minister of Finance Xiang Huaicheng said Thursday.

The minister was presenting a report on the implementation of the central and local budgets for 2002 and draft budgets for 2003 to the on-going first session of the 10th National People's Congress.

The total national financial receipts amounted to 1.8914 trillion yuan, 89.9 billion yuan over the budgeted figure, while its total expenditures reached 2.2012 trillion yuan, 89.9 billion yuan over the budgeted figure.

The total receipts of the central finance in 2002 was 1.102 trillion yuan, 37.4 billion yuan over the budgeted figure, while their expenditures amounted to 1.4118 trillion yuan, 37.4 billion yuan over the budgeted figure, leaving a deficit of 309.8 billion yuan, the same as budgeted.

The total receipts of local finances in 2002 stood at 1.5886 trillion yuan, 58.2 billion yuan over the budgeted figure, while their total expenditures amounted to 1.5886 trillion yuan, 58.2 billion yuan over the budgeted figure, well balanced.

10 Billion Yuan More Deficit Budgeted for 2003

China's deficit for 2003 is budgeted to be 10 billion yuan more than in 2002, according to the report presented by Xiang. The deficit for 2002 was 309.8 billion yuan.

Xiang told the top legislature body that the total receipt of the central finance is budgeted to be 1.194 trillion yuan, 57.5 billion yuan or 5.1 percent more than in 2002 and the total expenditure is budgeted at 1.5138 trillion yuan, 67.5 billion yuan or 4.7 percent more than in 2002, leaving a deficit of 319.8 billion yuan, 10 billion more than in 2002.

The deficit, plus the domestic and foreign debts overdue, willbring the total debts of the central finance up to 640.4 billion yuan.

The total receipt of local finances for 2003 is budgeted at 1.7105 trillion yuan, 121.9 billion or 7.7 percent more than in 2002 and their total expenditure is budgeted at 1.7105 trillion yuan, 121.9 billion or 7.7 percent more than in 2002.

Putting the budgets of the central and local finances together,the total national receipt in 2003 will be 2.0501 trillion yuan, 158.7 billion or 8.4 percent more than in 2002 and the national total expenditure will be 2.3699 trillion yuan, 168.7 billion or 7.7 percent more than in 2002.

Defense Spending up 9.6 Percent This Year

The Chinese government has planned a 185.3 billion yuan budget for national defense in 2003, a 9.6 percent increase over the figure for the previous year, said the minister.

The increase has been proposed with a view to adapting to changes in the international situation, safeguarding China's national security and sovereignty and territorial integrity and raising the combat effectiveness of the armed forces in fighting wars to defend the country with the use of high technology, the minister said.

Further Funding Agriculture, Rural Areas

China's central government will further increase funding for agriculture and rural economic and social development, said Xiang.

The minister said that accelerating agricultural and rural economic and social development is essential to building a well-off society in an all-round way, maintaining sustained, rapid and sound development of the national economy and ensuring long-term stability of the country.

The central authorities have decided that in addition to allocating more treasury bond funds to rural areas, experimentation with the reform of taxes and administrative charges will be extended to all rural areas in 2003, according to the minister.

Funds totaling 30.5 billion yuan will be specially transferred from the central budget to subsidize this reform, an increase of 6 billion yuan over 2002.

In addition, the central financial authorities will continue to increase the budgetary funds for the construction of infrastructural facilities, ecological improvement, rural anti-poverty endeavor, spread of improved strains of crops, establishment of a quality and safety standard system and an inspection system for agricultural products, and the strategic restructuring of agriculture.

Budgetary Spending for Social Security

The Ministry of Finance proposes that expenditures for social security programs should be expanded in 2003, saying that spending on social security programs will be increased to help urban residents in straitened circumstances meet their basic living needs and safeguard the immediate interests of the general public.

According to the minister, the increased budgetary expenditures are to be used in areas as follows:

An additional 8.4 billion yuan will be used to increase the basic pensions for retirees from state-owned enterprises, the retirement benefits of veteran cadres who joined the revolutionary ranks in the early days of New China and pensions for older ex-servicepersons in rural areas.

An extra 4.6 billion yuan will be allocated to implement the policy of doubling the subsistence allowances for those urban residents living below the poverty line, and an extra 4.7 billion yuan to implement the policy of subsidizing reemployment programs. In addition, The government will continue to allocate 11 billion yuan to subsidize the bankruptcy of enterprises according to law.

According to the minister, expenditures for social security programs from the central budget for 2002 came to 136.2 billion yuan, an increase of 38.6 percent over the previous year.

In addition, financial authorities cooperated with competent government departments to tighten collection, management and supervision of social security funds and improve the method of making special transfer payments for social security and the system for managing the special financial accounts for subsidies under social security programs.

The minister noted that experimentation with the reform of social insurance fees collected by tax organs was extended to 16 provinces.

In addition, he said, financial authorities took an active part in and gave support to the reform of the basic medical insurance system for urban employees and experimentation with the reform to improve the urban social security system in Liaoning and other provinces.

All this promoted smooth implementation of the reforms, he said.

Statistics show that basic pensions for retirees from state-owned enterprises and living allowances for workers laid off from state-owned enterprises who had registered with reemployment service centers were basically paid on time and in full as of the end of 2002. The number of urban residents who received subsistence allowances rose from 1.84 million at the end of 1998 to 20.6 million at the end of 2002.

This helped maintain social stability, he stressed.

In the past five years, the central financial authorities have accumulated 124.2 billion yuan in the national social security fund. This has provided an important financial means to prepare the country for possible emergency, he said.

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