Following is the full text of report on the implementation of central and local budgets in 2012 and on draft central and local budgets for 2013, which was submitted for review on March 5 at the first session of the 12th National People's Congress, the country's top legislature, and was adopted on March 17.
Report on the Implementation of Central and Local Budgets in 2012 and on Draft Central and Local Budgets for 2013
First Session of the 12th National People's Congress on March 5, 2013
Ministry of Finance of the People's Republic of China
I. Implementation of central and local budgets in 2012
II. Draft central and local budgets for 2013
III. Deepening fiscal and tax reforms and making management more scientific to successfully implement the 2013 budgets
The Ministry of Finance has been entrusted by the State Council to submit this report on the implementation of the central and local budgets in 2012 and on the draft central and local budgets for 2013 to the First Session of the Twelfth National People's Congress (NPC) for your deliberation and approval and for comments and suggestions from members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).
I. Implementation of central and local budgets in 2012
In 2012, under the firm leadership of the Communist Party of China (CPC), the people of all the country's ethnic groups worked tenaciously and forged ahead in solidarity, and progress was achieved in economic and social development while ensuring stability. On the basis of this, fresh headway was made in fiscal development and reforms, and government budgets were satisfactorily implemented.
1. Implementation of public finance budgets
National revenue totaled 11.720975 trillion yuan, an increase of 12.8% over 2011 (here and below). Adding the 270 billion yuan from the central budget stabilization fund, utilized revenue totaled 11.990975 trillion yuan. National expenditure amounted to 12.571225 trillion yuan, up 15.1%. Adding the 18.415 billion yuan of central government surplus revenue used to replenish the central budget stabilization fund, the 200 billion yuan used to repay the principal on local government bonds and the 1.335 billion yuan of local government expenditure carried forward to 2013, national expenditure totaled 12.790975 trillion yuan. Total national expenditure therefore exceeded total national revenue by 800 billion yuan.
Breaking these figures down, central government revenue amounted to 5.613242 trillion yuan, 100.4% of the budgeted figure and an increase of 9.4%. Including the 270 billion yuan contributed by the central budget stabilization fund, total revenue used by the central government came to 5.883242 trillion yuan. Central government expenditure amounted to 6.414827 trillion yuan, 100% of the budgeted figure and an increase of 13.7%. This consists of 1.87648 trillion yuan of central government spending, up 13.6%, and 4.538347 trillion yuan in tax rebates and transfer payments to local governments, an increase of 13.7%. Adding the 18.415 billion yuan of central government surplus revenue used to replenish the central budget stabilization fund, central government expenditure totaled 6.433242 trillion yuan. Total expenditure of the central government exceeded total revenue, leaving a deficit of 550 billion yuan, the same as the budgeted figure. The outstanding balance on government bonds in the central budget was 7.75657 trillion yuan at the end of 2012, which was under the budgeted limit of 8.270835 trillion yuan for the year.
The revenue of local governments came to 6.107733 trillion yuan, an increase of 16.2%. Adding the 4.538347 trillion yuan in tax rebates and transfer payments from the central government, local government revenue totaled 10.64608 trillion yuan. Local government expenditure amounted to 10.694745 trillion yuan, up 15.3%. Adding the 200 billion yuan used to repay the principal on local government bonds and the 1.335 billion yuan carried forward to 2013, local government expenditure totaled 10.89608 trillion yuan. Total expenditure by local governments exceeded total revenue by 250 billion yuan.
The following is a breakdown of main items in the central budget in 2012:
1) Main revenue items
Domestic VAT revenue was 1.967847 trillion yuan, 97.2% of the budgeted figure. This shortfall was mainly due to small increases in the value-added of industry and the CPI. Domestic excise tax revenue was 787.214 billion yuan, 102.2% of the budgeted figure; revenue from VAT and excise tax on imports amounted to 1.479641 trillion yuan, 99.7% of the budgeted figure; and revenue from customs duties came to 278.274 billion yuan, 103.4% of the budgeted figure. Corporate income tax revenue was 1.208218 trillion yuan, 108.7% of the budgeted figure. It exceeded the budgeted figure largely because actual corporate income tax revenue for 2011 exceeded estimates on which tax was collected that year, with the remainder paid in 2012. Individual income tax revenue was 349.261 billion yuan, 102.7% of the budgeted figure; VAT and excise tax rebates on exports came to 1.042888 trillion yuan, 104.8% of the budgeted figure; and non-tax receipts totaled 284.878 billion yuan, 100.8% of the budgeted figure.
Central government revenue exceeded the budgeted figure by 21.242 billion yuan in 2012. Of this, 2.827 billion yuan from surplus vehicle purchase tax revenue was used to increase spending on highway construction as required by relevant regulations, and the remaining 18.415 billion yuan was used to replenish the central budget stabilization fund for future budgetary purposes.