China’s Budget System

The Chinese government has directed the state owned enterprises or the SOEs to take the responsibility of furnishing details about China’s budget system and matters related to the same. China’s budget system essentially consists of many tax tools as well as fiscal tools for promoting growth in the economy. The government in China, periodically revises its policies so that the China budget system is better equipped to deal with the various financial issues of the country. Whenever necessary, the government relaxes certain norms and exercises strict control in some areas.

Military budget of China under China budget system:

China has military budget as well. The Peoples Liberation Army employ different accounting processes to work out the military budget. The Military budget includes all the expenses which are required to be made for the various military operations in China. However, the military budget does not include expenditure for some categories like expenditure details pertaining to acquisitions .

Statistical information of China’s budget system in 2007:

• For the safety of the public, the government in China has apportioned 59.483 billion yuan in 2007. There was an increase by 28.3% or 13.125 billion yuan as compared to the year 2006.
• For military or defense operations, 347.232 billion yuan is allocated. Again, there was an increase by 52.498 billion yuan from 2006.
• For cooperation and exchange programs (international), the Chinese government has apportioned 23.066 billion yuan . A hike of 37.3% was registered in comparison to 2006.
• Approximately, 216.053 billion yuan is assigned for covering expenditure related to public services.
• The government in China, had assigned as much as 339.7 billion yuan as part of the central budget for various agricultural activities in the year 2006. This amount was also allotted for farmers as well as development of rural areas. This amount, however did not include expenses for surcharges pertaining to sale of oil and subsidies. In comparison to the year 2005, there was an increase by 14.2 percent.
• The National revenue was 3.934362 trillion yuan in the year 2006. There was an increase by approximately 24.3 percent as compared to 2005. In other words, the National revenue was 769.433 billion yuan more in comparison to 2005.
• National expenditure was 4.021316 trillion yuan yoy. An increase by 628.288 billion yuan or 18.5% was registered in 2006.
• Revenue was more than what was expected as per the budget target. The budget target was 392.024 billion yuan. Out of this, 254.247 billion yuan was the budget target of the central government. For the local government, the budget target was 137.777 billion yuan.