Full Text: Report on central, local budgets

Third, we will implement a structural tax reduction, and guide enterprise investment and consumer spending. We will build upon progress in VAT reform and the reform of taxes and fees on refined oil products. We will apply a preferential income tax policy to some small enterprises with low profits. We will temporarily reduce sales tax on passenger vehicles with engine displacement of 1.6 liters or less to 7.5%. We will continue to implement tax and fee reduction and exemption policies, and find a way to eliminate expired policies. We will tighten management of the examination and approval of administrative fees and projects financed through government-managed funds.

Fourth, we will improve the structure of government spending, and ensure and improve people's wellbeing. Following the principles of considering all factors, maintaining some expenditures while reducing others, and stressing key areas, we will give high priority to building a new socialist countryside; shoring up weak links in the development of social programs; and helping poverty-stricken areas, primary-level institutions, and the masses. We will increase spending on public services, agriculture, rural areas, and farmers; science and technology; education; medical and health care; social security; low-income housing; energy conservation; and environmental protection to improve people's wellbeing and promote the development of social programs. We will control spending on official visits overseas, the purchase and use of official cars, and the entertaining of official guests; greatly reduce general expenditures such as public spending; and lower administrative costs.

Fifth, we will vigorously support balanced development among regions and economic restructuring, and promote transformation of the pattern of economic development. We will increase central government transfer payments to local governments; increase support for old revolutionary base areas, ethnic minority areas, border areas, and poverty-stricken areas; research and formulate fiscal and taxation policies to increase support for the large-scale development of the western region; facilitate the all-round vitalization of northeast China and other old industrial bases; vigorously promote the rise of the central region; and support the eastern region in taking the lead in development. We will increase support for innovation in science and technology and encourage key industries and enterprises to enhance their capacity for independent innovation. We will increase funds for supporting the development of small and medium-sized enterprises, particularly small enterprises, and promote their technological innovations, restructuring, and employment expansion. We will support the development of emerging industries of strategic importance, and work vigorously to conserve energy, reduce emissions, and eliminate backward production capacity. We will reform the resource tax system, comprehensively promote reform of the system of compensation for exploiting mineral resources, improve the compensation and credit trading system for pollution rights, expand the trials of pollution rights trading, and promote resource conservation and environmental protection.

Overview of budgeted revenue and expenditures, and the deficit for 2010. In accordance with 2010 targets for economic development set at the Central Economic Work Conference and the requirement of continuing to implement a proactive fiscal policy, after calculating all revenue and expenditure items individually, we have set the following major targets for the 2010 government budget.