Friday, March 07, 2008

Selected figures from China's 2008 budget

The Ministry of Finance unveiled China's 2008 budget on Wednesday and reported on last year's fiscal performance. The main points include:


The ministry projects a deficit of 0.6 percent of GDP this year, compared with 0.8 percent in 2007. The original target for 2007 was a deficit of 1.1 percent of GDP.

"Focusing on restructuring and achieving balanced development, we will improve and follow the prudent fiscal policy. We will coordinate this policy more closely with monetary policy and organically integrate efforts to balance total supply and demand, keep prices stable, make structural adjustments and foster equilibrium," the ministry said.


-- Total national revenue up 14 percent from 2007
-- Total national spending up 22.6 percent

"The implementation of the new law on corporate income tax, the effects of lowering the individual income tax rate on the interest from saving accounts, the VAT reform taking place in some cities in the central region, and raising the earnings threshold for the individual income tax will all markedly decrease revenue," the ministry said.

-- Spending on agriculture, forestry and water conservancy will total 145.05 billion yuan, up 17.2 percent


Total national revenue 5.13 trillion yuan, up 32.4 percent.
Total national spending 4.96 trillion yuan, up 22.6 percent.

Sources of tax revenue:

-- domestic VAT, up 17 percent
-- domestic consumption tax, up 17 percent
-- business tax, up 28.3 percent
-- corporate income tax, up 37.9 percent
-- individual income tax, up 29.8 percent
-- stamp tax, up 500.5 percent
-- tariff receipts, up 25.5 percent


-- education, up 76 percent
-- science and technology, up 26 percent
-- social safety net, up 13.7 percent
-- medical and health care, up 296.8 percent
-- environmental protection, up 61 percent
-- agriculture, forestry and water, up 43.9 percent
-- industry, commerce and banking, up 41 percent
-- national defence, up 18.1 percent
-- general public services, up 5 percent
-- tax rebates and fiscal transfers to local governments, up 21.2 percent


From 2002 to 2008, a total of 17.3 billion yuan was allocated from the central budget to support the hosting of August's Olympic Games and the following Paralympics.

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