On Thursday, a special committee of the National People's Congress (NPC), China's top legislature, said that the government's proposed budgetary plan was "workable."
Liu Jibin, vice chairman of the NPC Financial and Economic Committee (FEC), made the remarks to a presidium meeting of the NPC session.
The FEC is responsible for reporting to the presidium on its review of the previous year's budgetary performance and the budget for the current year, based on opinions of NPC deputies and other special NPC committees.
The State Council and governments at various levels have implemented the 2004 budget as planned, used macro-control measures to strengthen the economy and increased revenues by a large margin, according to the FEC.
"National finance played a key role in maintaining stable and rapid development of the economy, further promoting reform, opening-up and social progress last year," said Liu in his report.
The vice chairman also listed some difficulties and problems yet to be addressed this year, including those concerning rural areas, agriculture and farmers, the social security system and the further spread of compulsory education in rural areas.
From the opinions of those consulted, the FEC raised several suggestions in regard to the implementation of 2005's budget.
"The government should strengthen regulation and control over tax collection and ensure that revenues increase stably, whilst financial support for rural areas, agriculture and farmers should be enhanced," Liu said.
In addition, governments at various levels should give priority to "supporting employment and reemployment and establishing and improving social security systems."
The FEC also called for a "careful study" of fiscal and tax policies that might generate fundamental changes in the mode of economic growth, and urged governments at various levels to "actively deepen fiscal and tax reforms".
"An unified income tax for domestic and foreign enterprises should be established as soon as possible," said Liu.
The FEC also proposed greater efforts to administer budgets, supervise auditing and combat extravagance and waste.
Liu's report, together with a draft resolution to adopt the report, was ratified by the presidium, which has decided to submit the report and draft resolution to the top legislature for further deliberation and final approval.
(Xinhua News Agency March 11, 2005)
