2. Implementation of Budgets for Government-managed Funds
In 2011, revenue from government-managed funds nationwide came to 4.135963 trillion yuan, up 12.4%, and expenditure from them amounted to 3.964243 trillion yuan, up 16.8%.
1) Budget for central government-managed funds
Receipts from central government-managed funds totaled 312.593 billion yuan, 110.6% of the budgeted figure and a decrease of 1.6%. This figure includes 64.8 billion yuan from the railroad construction fund, 13.602 billion yuan from port development fees, 31.745 billion yuan from lottery ticket proceeds, 21.741 billion yuan from the fund for providing ongoing aid to residents relocated to make way for the construction of large and medium-sized reservoirs, and 10 billion yuan from the central government fund for repaying rural power grid loans. Adding the 79.487 billion yuan carried forward from 2010, utilized revenue from central government-managed funds totaled 392.08 billion yuan in 2011.
Expenditure from central government-managed funds totaled 310.349 billion yuan, 85.8% of the budgeted figure and an increase of 2.9%. This total consists of two parts. The first is 215.687 billion yuan of central government spending, down 5.6%, which includes 68.292 billion yuan on railroad construction; 7.335 billion yuan on port development; 19.125 billion yuan from lottery ticket proceeds, which was spent on social welfare, sports, education, and other public service programs; and 10.526 billion yuan from the central government fund for repaying rural power grid loans. The second part is 94.662 billion yuan in transfer payments to local governments, up 29.2%. A total of 81.731 billion yuan was carried forward to 2012 from central government-managed funds.
2) Budgets for local government-managed funds
Revenue collected by local governments from funds under their control reached 3.82337 trillion yuan, an increase of 13.8%. This figure includes 3.316624 trillion yuan from the sale of state-owned land use rights, 85.726 billion yuan from urban infrastructure construction fees, 31.16 billion yuan from lottery ticket proceeds, and 68.813 billion yuan from local education surcharges. Adding the 94.662 billion yuan in transfer payments from central government-managed funds, total revenue from local government-managed funds was 3.918032 trillion yuan.
Expenditure from local government-managed funds totaled 3.748556 trillion yuan, an increase of 18.4%. This includes 3.293199 trillion yuan of spending from proceeds of the sale of state-owned land use rights, consisting of 2.362997 trillion yuan paid out as compensation for land expropriation, housing demolition, and resident relocation; 235.106 billion yuan for developing and improving farmland, strengthening rural infrastructure, and subsidizing farmers; 19.746 billion yuan on education; 12.035 billion yuan for building irrigation and water conservancy facilities; 66.858 billion yuan on low-income housing projects; and 596.457 billion yuan on urban development allocated in accordance with the provisions of the Law on Urban Real Estate Administration. A total of 30.14 billion yuan from lottery ticket proceeds was spent on social welfare, sports, education, and other public service programs; 74.104 billion yuan was used to build urban infrastructure; and 38.651 billion yuan from local education surcharges was earmarked for education. Surplus revenue from local government-managed funds was carried forward to 2012.
3. Implementation of the Central Government's State Capital Operations Budget
In 2011, revenue from the state capital operations of the central government totaled 76.502 billion yuan, 90.6% of the budgeted figure and an increase of 36.9%. The difference between the actual and budgeted amounts was mainly because sales of state shares of enterprises amounted to less than expected. Adding the 3.559 billion yuan carried forward from 2010, utilized revenue totaled 80.061 billion yuan.
Expenditure on the central government's state capital operations came to 76.954 billion yuan, 89.6% of the budgeted figure and an increase of 42%. The difference between the actual and budgeted amounts was mainly due to proceeds from the sale of state shares of enterprises being less than expected, which resulted in a corresponding reduction in expenditure. This figure includes 49.166 billion yuan for restructuring the state sector and industrial restructuring, 2.312 billion yuan in subsidies for reforming central government enterprises and making them profitable, 3.5 billion yuan for fostering major scientific and technological innovations, 3.5 billion yuan for major energy conservation and emissions reduction projects, 2.318 billion yuan for overseas investment, 955 million yuan for strengthening production safety, 8 billion yuan for enterprise mergers and reorganizations, 2.609 billion yuan for supporting emerging industries, and 4 billion yuan transferred to the public finance budget and spent on social security.
4. Implementation of a Proactive Fiscal Policy
We followed a proactive fiscal policy, further consolidated and expanded upon the success in responding to the impact of the global financial crisis, spurred steady and robust economic development, and kept overall price levels basically stable.
We made full use of the role of fiscal and tax policies to keep overall price levels basically stable. We supported increases in the supply of agricultural products, stabilized the supply of fertilizers and refined petroleum products, increased support for hog production, strengthened regulation of the markets for reserve commodities, gave policy support to grain and edible oil sales in designated areas, expanded imports of daily necessities and raw materials, and thereby promoted a balance between supply and demand. We exempted vehicles transporting fresh farm products from road tolls, reviewed road tolls, and lowered distribution costs. We implemented all policies to grant subsidies to low-income groups in urban and rural areas, provided fuel subsidies to certain people facing financial difficulties and some public service industries, and lessened the impact of rising prices on disadvantaged groups.
We raised the incomes of urban and rural residents to increase their purchasing power. We made the distribution of national income more reasonable, expanded government subsidies, increased subsidies to farmers, strengthened agricultural infrastructure, and made further progress in providing financial support for alleviating poverty through development, in order to increase rural incomes. We raised subsistence allowances for both urban and rural recipients as well as basic pensions of enterprise retirees, extended trials of the new old-age insurance system for rural and urban residents, and implemented performance-based salary systems for compulsory education teachers and workers in public health institutions and community-level medical and health care institutions, thereby boosting people's purchasing power. We improved policies on providing subsidies for rural residents to purchase home appliances and subsidies for trading in old home appliances for new ones. We supported the development of goods distribution and improved the consumption environment.
We improved the investment structure to shore up weak links in economic and social development. The central government used its capital construction investment mainly to support the construction of low-income housing projects and the development of agricultural infrastructure, particularly water conservancy facilities, and education and health infrastructure; energy conservation, emissions reductions, ecological conservation, and environmental protection; economic and social development in Xinjiang, Tibet, and Tibetan ethnic areas in Qinghai, Sichuan, Yunnan, and Gansu provinces; independent innovation; and the development of strategic emerging industries. We gave priority to ensuring funding for key ongoing projects, and began construction on the major projects laid out in the Twelfth Five-Year Plan in an orderly manner.
We refined policies on structural tax reductions to guide business investment and consumer spending. We raised the individual income tax threshold on salaries from 2,000 yuan to 3,500 yuan per month and adjusted the tax rate structure to reduce the tax burden on low- and middle-income earners. We continued to implement a preferential income tax policy for some small businesses with low profits and initiated a series of tax relief and exemption policies, such as raising VAT and business tax thresholds, to reduce the burden on small and medium-sized enterprises. We put into effect lower provisional import tariffs on more than 600 resource products, basic raw materials, and key parts and components in 2011. We continued to implement preferential tax policies to promote the large-scale development of the western region. We rescinded, reduced or remitted 77 charges and funds to lighten the burden on businesses and consumers.