Page 15 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

accountability enforcement, we made prudent advances in using special-purpose
bonds to replenish the capital of small and medium-sized banks. We introduced
temporary tax relief policies and supported the timely delivery of housing projects

to meet people’s needs and ensure social stability.
 We remained committed to innovation-driven development and made

industrial and supply chains stable.
Working to enhance the capacity for scientific and technological innovation
In 2022, the central government increased spending on basic research in its

general public budget by 13.5%. We developed a plan for providing financial
support to national laboratories and supported the building of the second batch of

national laboratories. We spared no effort to ensure the necessary funds for
research on core technologies in key fields and innovations in defense-related

science and technology. We promoted accelerated implementation of major science
and technology projects such as programs for bio-breeding technology in

agriculture. We reformed and improved the mechanisms for central government
expenditures on civil technologies, adjusted and optimized project expenditures,
and tightened management of basic expenditures in line with staffing levels and

spending standards. We refined the policy for supporting innovation through
government procurement.

Energizing and unleashing the creativity of enterprises
We granted tax breaks to enterprises for basic research and equipment

purchases, raised the rate of extra tax deductions on R&D costs for sci-tech SMEs to
100%, and temporarily expanded this policy to cover all eligible industries. We

promoted the development of SMEs that apply special, sophisticated techniques to
produce unique and novel products, and extended support for more than 540
national-level “little giant” enterprises. We backed trials for digital transformation

of SMEs, selecting 98 public service platforms to facilitate digitalization of over
2,000 pilot enterprises.

Working to boost the resilience of China’s industrial and supply chains
Making good use of special funds for rebuilding industrial foundations and

boosting high-quality development of the manufacturing sector, we promoted
efforts to tackle a number of blockages and disruptions in key industrial chains. In

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