Full Text: Report on central, local budgets

10) Expenditures on public security amounted to 128.745 billion yuan, 110.9% of the budgeted figure and an increase of 41.441 billion yuan or 47.5%. The excess consisted mainly of increased expenses for equipment and operation of procuratorial, judicial, and public security departments. This sum consisted of 84.579 billion yuan of central government spending and 44.166 billion yuan of transfer payments to local governments. We reformed the funding mechanism for procuratorial, judicial, and public security departments; increased financial assistance for local procuratorial, judicial, and public security departments, especially those at the county level in the central and western regions; and enhanced their ability to perform their functions. We continued to intensify efforts to informationize procuratorial, judicial, and public security departments, and the People's Armed Police Force.

11) Expenditures on post-Wenchuan earthquake recovery and reconstruction reached 96.999 billion yuan (excluding the money appropriated for this purpose out of vehicle purchase tax revenue and lottery ticket proceeds), which was 100% of the budgeted figure. This figure consisted of 13.06 billion yuan of central government spending and 83.939 billion yuan of transfer payments to local governments. In accordance with plans, these funds were used in the areas of housing, infrastructure, public services, industrial rebuilding, and improvement of the ecosystem.

12) National defense spending came to 482.985 billion yuan, 102.1% of the budgeted figure and an increase of 72.844 billion yuan or 17.8%. This amount consisted of 482.501 billion yuan of central government spending and 484 million yuan of transfer payments to local governments. These funds were used to improve the living conditions and benefits of army officers and enlisted personnel, intensify the development of informationization, increase the army's equipment and supporting facilities by an appropriate amount, and improve its ability to respond to emergencies and disasters.

13) Expenditures on transportation and transport amounted to 217.871 billion yuan, 115.4% of the budgeted figure and an increase of 60.677 billion yuan or 38.6%. The excess consisted mainly of increased spending on highway construction resulting from unexpectedly high vehicle sales tax revenue, which is required by regulations to be spent for this purpose. This sum consisted of 106.918 billion yuan of central government spending and 110.953 billion yuan of transfer payments to local governments. We spent 76.51 billion yuan on the construction of the expressway network and passenger railway lines nationwide, and trunk railway lines in the western region. Another 62 billion yuan was used to increase subsidies for the construction of rural highways in ethnic minority, border, and poverty-stricken areas in the central and western regions, and support the construction or upgrading of 380,000 kilometers of rural highways. We spent 10.5 billion yuan of fuel purchase subsidies for some public service sectors, such as urban public transport and rural passenger transport. We spent 26 billion yuan on subsidies to local governments for phasing out tolls on government-financed Grade II highways, and spent 6.1 billion yuan on improving postal services.

14) Expenditures on general public services came to 132.663 billion yuan, 101% of the budgeted figure and an increase of 11.145 billion yuan or 9.2%. This consisted of 108.422 billion yuan of central government spending and 24.241 billion yuan of transfer payments to local governments. These funds were used mainly to ensure the normal operation of government offices and assist local governments in providing severance packages to personnel leaving the armed services to find other employment.

15) Expenditures on interest on government bonds amounted to 132.07 billion yuan, 96.3% of the budgeted figure and an increase of 4.201 billion yuan or 3.3%.

Central government expenditures on the above items in areas that directly affect the people's lives such as education, medical and health care, social security, employment, low-income housing, and culture totaled 742.648 billion yuan, an increase of 31.8%. This sum is even larger if we include central government expenditures on environmental protection, transportation and transport, which also affect people's lives. Central government expenditures on agriculture, rural areas, and farmers totaled 725.31 billion yuan, up 21.8%. This figure included 267.92 billion yuan for agricultural production; 127.45 billion yuan for direct subsidies to grain growers, general subsidies for purchasing agricultural supplies, and subsidies for purchasing superior crop varieties and agricultural machinery and tools; 272.32 billion yuan for social programs such as education and health in rural areas; and 57.62 billion yuan for expenses and interest related to reserves of agricultural products. A large proportion of the central government's tax rebates and general transfer payments to local governments were also used to improve people's wellbeing and benefit agriculture, rural areas, and farmers.