Despite negative impacts such as the SARS epidemic, earthquakes, floods and droughts, China's fiscal revenues continued to grow at lightning speed this year.
Fiscal revenues reached 2.025 trillion yuan (US$244 billion) through December 10, an increase of 20 per cent compared with the same period of last year, Finance Minister Jin Renqing said at an annual finance conference in Beijing yesterday.
"The growth rate was 7.1 percentage points higher than that of last year," Jin said.
Fiscal expenditures stood at 1.97 trillion yuan (US$237.2 billion) by December 10, a year-on-year increase of 13 per cent, he said.
Spending on the key projects such as fighting SARS, science, social security and agriculture have been given key attention.
With supporting "tax-for-fees" reforms in rural areas, the central government has arranged a special fund worth 30.5 billion yuan (US$3.7 billion).
Central and local governments had to come up with 13.3 billion yuan (US$1.6 billion) for SARS prevention and treatment efforts.
"The Chinese economy will continue to maintain good development momentum next year, which will lay a solid foundation for the revenue growth," Jin said.
But contradictions between fiscal revenues and expenditures will remain prominent, because greater fiscal support for development, reform and maintaining social stability is needed.
"There is almost no policy factor which can help increase revenue next year," Jin said.
On the contrary, policy factors which could reduce revenues have increased, he said.
"These include implementation of a tax-rebate system reform, tariff cuts, supporting development of high-tech industries and reducing farmers' financial burdens."
There is also less room to increase revenues by beefing up tax collection, because fiscal revenue growth has surpassed that of economic growth for many years, he said.
"It is difficult to maintain high revenue growth like we've seen in the past several years in 2004," Jin said.
However, the central government will increase spending on agriculture, social security, employment and other social undertakings.
(China Daily December 25, 2003)
