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

Figure 2

Projected Revenue and Expenditures in the Central Government's General Public Budget for 2017

Revenue into local government-managed funds is projected to be 4.346817 trillion yuan, up 3.6 percent. This figure includes 3.856862 trillion yuan in proceeds from selling state-owned land-use rights, up 4.3 percent. Adding in the 112.385 billion yuan in transfer payments from central government-managed funds and the 800 billion yuan of revenue generated from special local government debt, revenue into local government-managed funds is projected to total 5.259202 trillion yuan. Expenditures through local government-managed funds are expected to total 5.259202 trillion yuan. This includes 4.646872 trillion yuan funded using proceeds from selling state-owned land-use rights, up 23.4 percent. The balance of outstanding special debt of local governments is projected to be no more than 7.268508 trillion yuan.

Revenue into the government-managed funds in both central and local government budgets is projected to be 4.717466 trillion yuan, an increase of 3.6 percent. Adding in the 29.85 billion yuan carried forward from last year and the 800 billion yuan of revenue generated from special local government debt, this revenue is projected to be 5.547316 trillion yuan. Expenditures through these funds are projected to reach 5.547316 trillion yuan, up 21.3 percent.

It should be noted that in 2017 the revenue and expenditures for three items, including fees for the compensated use of additional land designated for construction projects, will be transferred from government-managed fund budgets into general public budgets. We have accordingly deducted the figures for 2016 so that the level of growth for these items is calculated on a comparable basis. 

3) Budgets for state capital operations 

In 2017, we will strive to further refine the budgeting system for state capital operations and improve the structure of expenditures. The proportion of profits from the operations of central government enterprises that should be turned over to the central government will be kept unchanged for now, and the proportion of funds allocated from the budgets of the state capital operations of the central government to its general public budget will be raised from 19 to 22 percent. Budgetary expenditures through central government state capital operations will be primarily used to promote supply-side structural reform, address the longstanding problems of SOEs, and deepen SOE reform.

Budgetary revenue from the state capital operations of the central government is projected to be 129 billion yuan, down 9.8 percent. This decrease comes primarily from lower than expected enterprise profits in the petroleum, petrochemical, and electricity industries. Adding in the 12.803 billion yuan carried forward from last year, budgetary revenue from central government state capital operations is projected to total 141.803 billion yuan. Budgetary expenditures through these operations are expected to be 116.103 billion yuan, down 20 percent, which is mainly due to a reduction in the use of funds carried forward from last year. Of this, 104.703 billion yuan is to be spent at the central level, an increase of 11.7 percent, and 11.4 billion yuan is to be transferred to local governments, a decrease of 77.8 percent. A projected 25.7 billion yuan will be transferred into the general public budget, up 4.5 percent.

Budgetary revenue from the state capital operations of local governments is projected to be 104.83 billion yuan, down 10.5 percent from last year. Adding in the 11.4 billion yuan of transfer payments from the budgets of central government state capital operations, budgetary revenue into local government state capital operations is projected to total 116.23 billion yuan. Budgetary expenditures through local government state capital operations are estimated to be 91.43 billion yuan, down 25.9 percent. A projected 24.8 billion yuan is to be allocated to local government general public budgets.

Revenue in the state capital operation budgets of both the central and local governments is projected to be 233.83 billion yuan, down 10.1 percent. Adding in the 12.803 billion yuan carried over from last year, this revenue is projected to total 246.633 billion yuan. Budgetary expenditures through state capital operations of both the central and local governments are expected to be 196.133 billion yuan, down 9.7 percent. A projected 50.5 billion yuan will be transferred into general public budgets.

4) Budgets for social security funds

Revenue into China's social security funds is projected to be 5.178672 trillion yuan, up 7.3 percent. This includes 3.690798 trillion yuan in insurance premiums and 1.259597 trillion yuan in government subsidies. Expenditures through China's social security funds are expected to total 4.84505 trillion yuan, up 10.3 percent. With a projected surplus of 333.622 billion yuan this year, the year-end balance is expected be 6.663089 trillion yuan after the balance from 2016 has been rolled over.

It should be noted that as local budgets are formulated by local people's governments and submitted for approval to the people's congresses at their respective levels, the relevant data is still in the process of being compiled. As such, the above-mentioned projected figures for local revenue and expenditures have been compiled by the central finance authorities.

For a more detailed account of the budgets arrangements related to the above items, please refer to the Report on the Execution of the 2016 Budgets of the People's Republic of China and Its 2017 Draft Budgets in Chinese.

In accordance with the Budget Law, after the beginning of a new budget year and prior to the approval of these draft budgets by the NPC, arrangements may be made for the following expenditures:

-- carryover expenditures from the previous financial year

-- basic expenditures and program expenditures of government departments and transfer payments to lower-level governments that must be made in the current year, after referring to the amount of budgetary expenditures for the corresponding period over the previous year

-- expenditures mandated by law

-- expenditures for dealing with natural disasters and other emergencies

In accordance with the above stipulations, in January 2017, expenditures in the central government's general public budget totaled 984.5 billion yuan, which consists of 165.7 billion yuan spent at the central level and 818.8 billion yuan in tax rebates and transfer payments made to local governments.