Page 23 - REPORT ON THE EXECUTION OF THE CENTRAL AND LOCAL BUDGETS FOR 2015 AND ON THE CENTRAL AND LOCAL DRAFT BUDGETS FOR 2016

years is included). Total expenditures are projected to exceed total revenue leaving
a deficit of 1.4 trillion yuan, an increase of 280 billion yuan over last year. The
ceiling for the outstanding balance of central government bonds will be
12.590835 trillion yuan. The Central Budget Stabilization Fund will carry a balance
of 15.637 billion yuan.

Expenditures in the central government’s general public budget are divided
into central government expenditures, tax rebates for local governments, general
transfer payments to local governments, special transfer payments to local
governments, and payments to central government reserve funds.

Central government expenditures are projected to total 2.7355 trillion yuan,
up 7% over last year. This consists of 270.643 billion yuan for science and
technology expenditures, up 9.1%; 51.971 billion yuan for foreign affairs-related
expenditures, up 8.6%; 954.354 billion yuan for national defense spending, up
7.6%; 166.815 billion yuan for public security expenses, up 5.3%; 120.138 billion

yuan for expenditures on general public services, up 13.7%; and 329.929 billion
yuan for interest payments on debt, up 15.1%. Central government spending on
official overseas visits, official vehicles, and official hospitality will adhere to the
policy of zero-growth.
Central government tax rebates to local governments are projected to be
508.857 billion yuan, which is basically consistent with the actual figure for 2015.

General transfer payments to local governments will amount to 3.201782
trillion yuan, up 12.2% over last year. Of this amount, transfer payments for
equalizing access to basic public services will account for 2.039225 trillion yuan,
up 10.2%, which will be mainly used to help alleviate the burden on local

governments due to falling revenue growth and increased expenditures; transfer
payments to old revolutionary base areas, areas with concentrations of ethnic
minorities, border areas, and poor areas will reach 153.791 billion yuan, up 22.4%;
transfer payments for basic pension schemes will total 504.276 billion yuan, up
14.5%; and transfer payments for the rural and non-working urban resident health
insurance systems will come to 242.627 billion yuan, up 14.3%.

Special transfer payments to local governments will come to 2.092361 trillion
yuan, a reduction of 3.2% from last year. The number of items eligible for special
transfer payments will be strictly limited and the payment amounts for each item
will be effectively reduced, particularly with regard to projects that involve
competitive areas or subsidies for enterprise operations. Expenditures that are not
in line with policy intentions or are no longer highly beneficial, such as price
subsidies for refined oil products, will be reduced by a large margin. Expenditures
that have been made unnecessary due to changes of circumstances, such as
interest subsidies on loans used to finance public infrastructure construction in
development zones, will be canceled. Additionally, special transfer payments for

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