Full Text: Report on central, local budgets

III. Managing Public Finance in Accordance with the Law and Practicing Scientific Management to Ensure Successful Implementation of the 2010 Budgets

1. We will effectively implement a proactive fiscal policy. We will earnestly carry out all fiscal policies and measures, and carefully monitor the implementation of a proactive fiscal policy. We will maintain the focus, intensity, and pace of policy implementation, and improve related policies and measures as needed in light of developments and changes in the domestic and international economic situations. We will strive to use government funds and fiscal policy to guide non-government investment and consumer spending, and arouse the initiative of enterprises, individuals, and other market players, and let market forces better play their basic role in allocating resources. We will strengthen the coordination of our macroeconomic policies to create unified macro-control.

2. We will improve fiscal and taxation systems and mechanisms conducive to developing scientifically. We will improve the transfer payment system, and establish a sound public finance system in which the financial resources of governments are commensurate with their responsibilities. We will optimize the structure of fiscal transfer payments, increase general transfer payments, do more to standardize special transfer payments, and improve the method of distributing transfer payments. We will improve fiscal systems at and below the provincial level, improve the mechanism for guaranteeing that county-level governments have adequate basic financial resources, and press ahead with the reform to place county finances directly under the management of provincial governments. We will reform the system of resource taxes. We will improve the sales tax and housing property tax systems. We will extend urban construction and maintenance tax and education surcharges to foreign enterprises and nationals. We will continue to effectively implement VAT reform and further improve the VAT system. We will implement all the measures for reforming taxes and fees on refined oil products. We will closely monitor the operations of the government budget system, improve the budget systems for government-managed funds and state capital operations, and do a good job of compiling the national budget for social security funds on a trial basis. We will carry out the reform requiring government departments at the county level throughout the country to prepare their own budgets. We will continue to improve the single treasury account system. We will deepen the reform to set up a centralized treasury collection and payment system and a government procurement system. We will improve the government revenue and expenditures classification system. We will study how to reform government accounting. We will deepen overall rural reform. We will vigorously support reforms of income distribution, the financial system, and the pricing system for basic products.

3. We will strive to make the management of public finance more scientific and meticulous. We will speed up the revision of the Budget Law and the Law on Certified Public Accountants. We will energetically promote the enactment of the VAT Law, the Vehicle and Vessel Tax Law, and other fiscal and taxation laws and regulations. We will standardize the procedures for compiling budgets, compile them in advance, make budget content more meticulous, reduce the number of budgets compiled by the central government for local governments, make budget implementation more on track at the beginning of the year, and strictly manage departmental budgets. We will accelerate budget implementation, improve the responsibility system for budgetary expenditures, strengthen management of basic expenditures and project expenditures, improve the mechanism for effectively linking budget preparation for one year with budget implementation of the pervious year, and make budget implementation more uniform and effective. We will improve management of all kinds of budgetary revenue and expenditures, and create a sound oversight mechanism for the entire process of using all government funds. We will focus on tightening oversight and inspection of the implementation of major fiscal and taxation policies, improve and tighten management of the implementation of the central government investment budget and the use of funds, resolutely investigate and punish violations of fiscal and budgetary laws and regulations, and improve the quality of and returns on government investment. We will actively evaluate the performance of budgetary expenditures, and explore ways to set up a mechanism for making the results of such evaluations open to the public and establish an effective accountability system. We will improve basic fiscal management work and strengthen public finance at the county and township levels. We will vigorously promote openness in the budget, establish a sound and standard mechanism to ensure openness, and willingly accept oversight by the general public. We will intensify the campaign to bring unauthorized departmental coffers under control, and look for ways to set up a permanent mechanism to prevent their occurrence. We will strengthen government debt management and effectively guard against and fend off potential financial risks.