Page 8 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2022 AND ON THE DRAFT CENTRAL AND LOCAL BUDGETS FOR 2023

Fund in accordance with regulations.
Revenue of local government-managed funds was 7.375535 trillion yuan, a
decrease of 21.6%. This shortfall was due mainly to decreased proceeds from the

sale of state-owned land-use rights. Adding in transfer payments of 78.669 billion
yuan from central government-managed funds and 3.65 trillion yuan raised by

local governments through special-purpose bonds, total revenue came to 11.104204
trillion yuan. Expenditure of local government-managed funds totaled 10.503949
trillion yuan, a decrease of 4.7%. This was mainly driven by the drop in proceeds

from the sale of state-owned land-use rights, which resulted in a corresponding
reduction in expenditure.

3. Revenue and expenditure of state capital operations in 2022
In accordance with relevant management regulations for the budgets of state

capital operations, revenue from state capital operations is mostly collected as a
certain proportion of the net profits of state-owned enterprises (SOEs) from the

previous year, while expenditure is planned according to the principle of balance
between expenditure and revenue.
Revenue of state capital operations nationwide was 568.86 billion yuan,

representing 110.9% of the budgeted figure and an increase of 10%. This was
mainly due to higher-than-expected SOE profits in 2021. Expenditure totaled

339.532 billion yuan, representing 96.5% of the budgeted figure and an increase of
29.5%. This was mainly due to increased spending on ensuring stable industrial

and supply chains.
Revenue of central government state capital operations was 234.331 billion

yuan, representing 103.3% of the budgeted figure and an increase of 17.2%. This
was mainly due to higher-than-expected profits of central government enterprises
in 2021. With the addition of 35.561 billion yuan carried over from 2021, total

revenue was 269.892 billion yuan. Expenditure of central government state capital
operations reached 171 billion yuan, representing 99.2% of the budgeted figure and

an increase of 60.6%, mainly due to the enhanced support for ensuring stable
industrial and supply chains. This included 166.102 billion yuan of central

government spending and 4.898 billion yuan in transfer payments to local
governments. Funds allocated from the central government state capital operations

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