Page 23 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

supplement social security funds, and social security fund reserves increased from
1.8 trillion yuan to over 2.5 trillion yuan. Government subsidies for basic medical
insurance for rural and non-working urban residents increased from 450 yuan to

610 yuan per person per year, and government subsidies for basic public health
services increased from 50 yuan to 84 yuan per person per year. Subsistence

allowances as well as subsidies and living allowances for entitled groups were
raised each year. Compared to the year-end figures for 2017, average subsistence
allowances for urban and rural residents had increased by 39.2% and 62.4%

respectively by the end of 2022. Regular benefits for the families of martyrs
increased at an average rate of about 10% per person each year. Working to

intensify pollution prevention and improve the compensation system for ecological
conservation, funds for air, water, and soil pollution prevention and control

increased at an average annual rate of 12.4% and transfer payments to key
ecological functional zones grew at an average annual rate of 9.6% over these five

years. We established a sound mechanism for government investment in
agriculture, and improved the systems of agricultural subsidies and policy-based
agricultural insurance, so as to ensure China’s food security and promote rural

development and growth in rural incomes.
Fourth, fiscal and tax reforms were deepened. We revised the implementation

regulations for the Budget Law, and issued and implemented the guidelines on
further deepening reform of the budget management system. Reform plans for

dividing fiscal powers and expenditure responsibilities between the central and
local governments in basic public services, science and technology, education, and

other areas were introduced, and reform of fiscal systems below the provincial
level was steadily advanced. We refined the system of transfer payments,
identified and improved transfer payments for shared fiscal powers, and more

clearly defined the functions of different types of transfer payments. The VAT
reform was deepened and the system for refunding credits was gradually

improved. An individual income tax system based on adjusted gross income and
specific income types was established. Excise tax and corporate income tax systems

were improved, and reform of the resource and environment tax systems was
carried out.

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