Page 30 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

order to promote high-quality development, we will step up inputs into weak links
and key sectors in economic and social development, and provide support for key
areas including scientific and technological research, rural revitalization, major

regional strategies, education, basic public wellbeing, and green development. The
central government will prioritize expenditures on obligatory and key items such

as those on central reserves and on issuance and interest payments of central
government bonds. Central department spending will remain largely unchanged
in line with the strict spending controls of recent years.

Second, we will make preferential tax and fee policies more precise and
targeted. We will review and analyze all existing policies and measures for tax and

fee cuts, tax rebates, and the postponing of tax payments, and better align policies
to be introduced this year with those from last year while taking into account the

actual needs of enterprises under current economic conditions, so as to avoid
discontinuities or sharp turns in policy by extending, improving, adjusting, and

reinforcing existing policies on a category-by-category basis. Combining
temporary measures with institutional arrangements, we will put emphasis on
supporting the manufacturing sector, MSMEs, self-employed individuals, and

industries facing special difficulties, so as to promote the transformation and
upgrading of enterprises and enhance their capacity for innovation.

Third, we will ensure funds are used more effectively. We will strengthen
performance-based budgetary management, be more results-oriented in our work,

focus more on cost effectiveness, and make accountability more binding, so as to
link spending with performance and performance with accountability. We will

further improve the mechanism for the direct allocation of government funds and
intensify the monitoring of budget execution, thereby ensuring that every cent is
used where it is needed most and to the best effect.

At the same time, we must enhance fiscal sustainability. Balancing short-term
considerations with long-term ones, we must make every effort while working

within our means and ensure arrangements for revenue and expenditure policies
are reasonable. Before introducing major policies to increase government spending

and implementing major government investment projects, we must assess our
fiscal capacity in accordance with regulations, ensuring that we do not make

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