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Full text: Report on China's central, local budgets(13)

2013-02-28 14:28 Xinhua     Web Editor: Mo Hong'e comment

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.

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