Page 2 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2015 AND ON THE CENTRAL AND LOCAL DRAFT BUDGETS FOR 2016

Fellow Deputies,
The Ministry of Finance has been entrusted by the State Council to submit
this report on the execution of the central and local budgets for 2015 and on the

drafts of the central and local budgets for 2016 to the fourth session of the
Twelfth National People’s Congress (NPC) for your deliberation and for
comments from the members of the National Committee of the Chinese People’s
Political Consultative Conference (CPPCC).

I. Execution of the Central and Local Budgets for 2015

In the face of a complex international environment and the formidable tasks

of domestic reform, development, and stability in 2015, the Central Committee
of the Communist Party of China (CPC) and the State Council have brought
together and led all of the people of China in taking an active approach to
economic and social development, adapting to the new normal in economic
growth, and responding appropriately to all major risks and challenges. As a result,
the economy has maintained a medium-high rate of growth, the economic
structure has improved, reform has been deepened, opening up has been
promoted, further improvements have been made to the people’s quality of life,
and social stability was ensured. Both the central and local government budgets

were executed satisfactorily last year.
1. Implementation of the NPC’s budget resolution

In accordance with the resolution of the third session of the Twelfth NPC on
the report on both the execution of the central and local budgets for 2014 and the
central and local draft budgets for 2015 as well as the review of that report by the
NPC Financial and Economic Affairs Commission, we have developed new ways
to improve macro regulation through fiscal policy, made steady progress in the
reform of fiscal and tax systems, and worked hard to bring about sustained,

healthy economic and social development.
Rule of law has been strengthened throughout fiscal and tax work.

We made efforts to ensure that governments at all levels, departments, and
organizations improved their rule of law awareness as they put into effect all of
the requirements laid down in the Budget Law. We strengthened the development
of the Budget Law’s complementary institutions, soliciting comments from the
general public on the draft revisions to the Implementation Regulations of the
Budget Law, launching management regulations for special transfer payments

from the central government to local governments, and revising management
regulations for general transfer payments and other rules and regulations. We
collaborated with the relevant NPC department on further clarifying the principle
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