China Budget

China’s central budget is prepared annually by the Chinese Ministry of Finance. Provincial budgets are also prepared by the local government. Both the budgets are presented in March, but before revealing the final figure to the public, the budgets are ratified by the National People’s Congress and local people’s congresses. According to the country’s budget law, even the plan of adjustments and final accounts are approved by the Standing Committee of the National People’s Congress and the local congresses before the final presentation.

China’s central budget is prepared annually by the Chinese Ministry of Finance. Provincial budgets are also prepared by the local government. Both the budgets are presented in March, but before revealing the final figure to the public, the budgets are ratified by the National People’s Congress and local people’s congresses. According to the country’s budget law, even the plan of adjustments and final accounts are approved by the Standing Committee of the National People’s Congress and the local congresses before the final presentation.

 

China Budget: Key Figures

Some of the key figures from China’s budget draft for 2009:

• Total revenue estimations for 2009 are pegged at 3.586 trillion yuan. It is expected to increase to 3.6365 trillion yuan, with the central government contributing 50.5 billion yuan towards a special fund created for central budget stabilization. Total expenditure is estimated at 4.3865 trillion yuan, which will result in a deficit of 750 billion yuan.

 

• The Chinese central government is planning to allocate 908 billion yuan for public spending, a significant increase of 487.5 billion yuan over 2008.

 

• The defense budget will be allocated 480.686 billion yuan, representing an almost 15% year-on-year rise.
• Grain producers will be allocated 123.08 billion yuan in the form of direct subsidies for producing better-quality crop varieties and the procurement of agricultural equipments.
• The allocation of 220.833 billion yuan will be made for providing improved subsistence allowances to urban and rural families. It will also be utilized to make pension payments for retirees of state-run industries.
• The implementation of policy for the subsidization of domestic appliances and vehicles for rural residents will be allocated 103.341 billion yuan.
• The central government will assign 716.14 billion yuan to boost agriculture in rural areas.
• An additional amount of 728.463 billion yuan will be allocated for the promotion of services necessary for people’s wellbeing. The education sector, medical facilities, social safety schemes and low-income housing policies will consume a major portion of this funding

• The government expects to promote energy conservation and reduce the emission of pollutants by allocating 49.5 billion yuan towards the development of energy-conserving know-how. It even aims to decommission backward production units.
• For upgrading small and medium enterprises (SMEs), the government has allocated 9.6 billion yuan.
• Funding for the development of science and technology will be 146.103 billion yuan, an impressive increase of 29.774 billion yuan over the previous budget.

In a landmark move, the State Council has allowed provincial governments to issue government bonds worth 200 billion yuan. The issuance of bonds will be recorded in the respective provincial budgets.