2. Budgets for government-managed funds

Revenue into central government-managed funds is projected to reach 427.165 billion yuan, up 5% from last year. Adding in the 24.817 billion yuan carried forward from last year, revenue into central government-managed funds will total 451.982 billion yuan. Expenditures from central government-managed funds will be 451.982 billion yuan, up 5.5%. This figure consists of 340.523 billion yuan of central government expenditures, up 12.8%, and 111.459 billion yuan of transfer payments to local governments, down 11.9%.

Revenue into local government-managed funds is projected to be 3.290209 trillion yuan, down 12.4%. This figure includes 2.82486 trillion yuan from the sale of state-owned land use rights, down 13.2%. Adding in the 111.459 billion yuan in transfer payments from central government-managed funds and the 400 billion yuan of revenue generated from local government special debt (an increase of 300 billion yuan over last year), total revenue related to local government-managed funds is projected to be 3.801668 trillion yuan. Total expenditures related to local government-managed funds will be 3.801668 trillion yuan. This includes 3.202408 trillion yuan of expenditures related to the proceeds of selling state-owned land use rights, down 2.6%. The balance of outstanding special debt of local governments will be no more than 6.48019 trillion yuan.

Combining the budgets for the central and local government-managed funds, revenue into these funds is projected to be 3.717374 trillion yuan, a decrease of 10.7% from last year. Adding in the 24.817 billion yuan carried forward from last year and the 400 billion yuan of revenue generated from local government special debt, revenue into government-managed funds nationwide will be 4.142191 trillion yuan. Total expenditures related to these funds will reach 4.142191 trillion yuan, down 1.2%.

It should be noted that, following the inclusion of the revenue and expenditures of five government-managed funds, such as water and soil conservation subsidies, into general public budgets, total budgetary revenue and expenditures of central and local government-managed funds will decrease in 2016. Because of this, we have correspondingly lowered the baseline figures for 2015 so that the level of growth can be calculated on a comparable basis.

3. Budgets for state capital operations

In 2016, we will strive to further refine the budgeting system for state capital operations. First, the proportion of funds allocated from the state capital operations budget of the central government to its general public budget will be raised from 16% in 2015 to 19% this year. Second, a total of 68 enterprises, including China Railway Corporation, will be incorporated into the central government's state capital operations budget. Third, the utilization of funds will be prioritized towards addressing longstanding problems of SOEs, reducing overcapacity, and making proper arrangements for laid-off employees.

Budgetary revenue from the state capital operations of the central government is projected to be 140 billion yuan, down 13.2% from last year. This decrease comes primarily from lower than expected enterprise profits in the petroleum, petrochemical, steel, and coal industries. Adding in the 39.723 billion yuan carried forward from last year, total budgetary revenue from central government state capital operations is projected to be 179.723 billion yuan. Budgetary expenditures on these operations are expected to be 155.123 billion yuan, up 37.3%. Of this, 119.123 billion yuan is to be spent at the central level, an increase of 18.5%, and 36 billion yuan is to be transferred to local governments, an increase of 189.6%. A projected 24.6 billion yuan will be transferred into the general public budget.

Budgetary revenue from the state capital operations of local governments is projected to be 89.47 billion yuan, down 5.5% from last year. Adding in the 36 billion yuan of transfer payments from the central government's state capital operations budget, total budgetary revenue from local government state capital operations will be 125.47 billion yuan. Budgetary expenditures on local government state capital operations are estimated to be 106.782 billion yuan, up 29.2%. This increase is primarily due to a rise in transfer payments allocated from the budgets of the central government's state capital operations for the purpose of helping relieve SOEs of their obligation to provide water, electricity, heating, gas, and property management services to their employees' homes as well as advancing the reform of collectively owned businesses operated by SOEs. A projected 18.688 billion yuan is to be allocated to local government general public budgets.

Combining the state capital operation budgets of the central and local governments, budgetary revenue nationwide is projected to be 229.47 billion yuan, down 10.4% from last year. Adding in the 39.723 billion yuan carried over from last year, total budgetary revenue from state capital operations nationwide will be 269.193 billion yuan. Budgetary expenditures on state capital operations nationwide are expected to be 225.905 billion yuan, up 23.3%. A projected 43.288 billion yuan will be transferred into general public budgets.

4. Budgets for social security funds

Revenue into social security funds nationwide is projected to be 4.714419 trillion yuan, up 5.6% from last year, which includes 3.437659 trillion yuan from insurance premiums and 1.084804 trillion yuan from government subsidies. Expenditures from social security funds nationwide will total 4.354653 trillion yuan, up 10.6%. With a projected surplus of 359.766 billion yuan this year, the year-end balance will be 6.06 trillion yuan after the balance from 2015 has been rolled over.

It should be noted that as local budgets are formulated by local people's governments and submitted for approval to the people's congresses at their respective levels, the relevant data is still in the process of being compiled. As such, the above-mentioned figures for local revenue and expenditures have been compiled by the central finance authorities.

For a detailed account of the budget arrangements related to the above items, please refer to the 2015 Nationwide Budget Execution Report and draft 2016 Nationwide Budget of the People's Republic of China.

In accordance with the Budget Law, after the beginning of a new financial year and prior to the approval of the drafts of the central and local government budgets by the National People's Congress, arrangements may be made for the following expenditures:

-- carryover expenditures from the previous financial year

-- basic expenditures and program expenditures of government departments and transfer payments to lower-level governments that must be made in the current year, after referring to the amount of budgetary expenditures for the corresponding period of the previous year

-- expenditures mandated by law

-- expenditures for dealing with natural disasters and other emergencies

In accordance with the above stipulations, in January 2016, expenditures in the central government's general public budget totaled 838.7 billion yuan, which includes 153.7 billion yuan spent at the central level and 685 billion yuan in tax rebates and transfer payments made to local governments.