3. Public Finance Budgets for 2012
On the basis of the general requirements for compiling budgets as well as the targets for economic and social development in 2012 and economic and social policies decided upon at the Central Economic Work Conference, we have set the following major targets for the 2012 public finance budgets: total central government revenue should reach 5.592 trillion yuan, an increase of 9% over the actual figure for 2011 (here and below). Adding the 270 billion yuan from the central budget stabilization fund, disposable revenue for 2012 should amount to 5.862 trillion yuan. Central government expenditure should total 6.412 trillion yuan, an increase of 13.7%. This consists of 1.8519 trillion yuan incurred at the central level, up 12.1%; 4.5101 trillion yuan paid out as tax rebates and transfer payments to local governments, up 13%; and 50 billion yuan used as reserve funds in the central budget, the same as the budgeted figure for 2011. Expenditure exceeds revenue in the central budget, leaving a deficit of 550 billion yuan, down 100 billion. The ceiling for the outstanding balance on government bonds in the central budget stands at 8.270835 trillion yuan.
|Figure 3 Budgetary Balance of Central Government Finances for 2012 (Xinhua Photo)
Based on preliminary provisions for the local budgets compiled by the central government, revenue collected by local governments will amount to 5.768 trillion yuan, an increase of 10%. Adding the 4.5101 trillion yuan in tax rebates and transfer payments from the central government, local government revenue will total 10.2781 trillion yuan. The central government will issue 250 billion yuan worth of treasury bonds for local governments. Local government expenditure will amount to 10.5281 trillion yuan, up 13.9%. The 50 billion yuan increase in local government bonds to be issued this year is based mainly on the considerations that low-income housing projects need more investment, and ongoing public welfare projects require follow-up investment following the standardization of debt management in financing corporations run by local governments. Revenue and expenditure budgets of local governments are compiled by local people's governments and subject to approval by people's congresses at their respective levels.
Combining central and local budgets, national revenue will be 11.36 trillion yuan, up 9.5%. Including the 270 billion yuan from the central budget stabilization fund, total available national revenue is projected to be 11.63 trillion yuan. Total national expenditure is budgeted at 12.43 trillion yuan, up 14.1%. Total expenditure exceeds total revenue by 800 billion yuan (including the 550 billion yuan central government deficit), 50 billion yuan less than last year and bringing the deficit down to approximately 1.5% of GDP.