Page 26 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

relatively high debt risks.
 Some local governments and government departments fail to strictly adhere to
belt-tightening requirements; some local governments construct government

buildings in violation of regulations by exploiting loopholes and
circumventing approval procedures; some primary-level officials embezzle

and appropriate funds earmarked for ensuring people’s wellbeing; and some
intermediary institutions fail to play their roles in auditing and appraisal. We
still have a long way to go to tighten up fiscal discipline and put finance in

good order.
We must take these problems very seriously and actively adopt measures to

address them.

II. Draft Central and Local Budgets for 2023

The year 2023 is the first year for fully implementing the guiding principles
from the 20th CPC National Congress. This makes our budget compilation and

public finance work all the more important. We will act in accordance with the
decisions and plans of the Party Central Committee and the State Council, apply
systems thinking, and uphold fundamental principles and break new ground. We
will work harder to coordinate Covid-19 response with economic and social

development, both effectively upgrade and appropriately expand economic output,
both pursue supply-side structural reform and expand domestic demand,

coordinate economic policy with other policies, ensure better interplay between
domestic and international economic flows, and keep in mind both the present and
the future. Continuing to pursue progress while putting stability first, and on the
basis of ensuring policy continuity and stability, we will boost fiscal support for

economic recovery and development as necessary, create greater synergy among
macroeconomic policies, and strive to fulfill the main targets for economic and

social development this year.
1. Analysis on the prospects for fiscal revenue and expenditure in 2023
At present and for some time to come, the Chinese economy will continue to
demonstrate strong resilience, potential, and dynamism, and the fundamentals

underpinning its long-term growth will remain unchanged. At the same time,

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