From the practice of China's implementation of sound fiscal policy in recent years, sound fiscal policy is relative to China's past implementation of moderately tight fiscal policy and active fiscal policy, the financial sector to implement the core content of sound fiscal policy is to "control deficits, adjust the structure, promote reforms, increase revenues and reduce expenditures". Deficit control reflects the incremental balance orientation of the fiscal policy of "moderately loose and tight", and the main measure is to appropriately reduce the fiscal deficit and long-term construction of the national debt. Adjustment of the structure, reflecting the structure of fiscal expenditure structure, "keep and control" of the structural optimization of the orientation, this round of macro-control presents an important feature is to prevent the expansion of the first signs of inflation, but also to avoid the shadow of deflation to return; both indirectly control the expansion of investment demand, but also efforts to expand consumer demand; both to control some industries Blind investment and low-level duplication of construction in some industries should be controlled, while efforts should be made to support the weak links in economic and social development. Promoting reform reflects the orientation of fiscal policy to promote "institutional innovation" and improve the market mechanism, that is, to change the previous way of relying mainly on fiscal expenditure to drive economic growth, and to realize the purpose of promoting overall reform through the reform of the treasury itself as well as the arrangement of fiscal revenues and expenditures that is conducive to the reform. Increasing revenue and reducing expenditure means that the financial sector should strive to increase revenue by strengthening tax collection and management, and at the same time strictly control the excessive growth of financial expenditure and enhance the efficiency of the use of financial funds.
In 2006, the basic feature of the fiscal expenditure policy was to adjust the structure of expenditure, and to safeguard the needs of public ****expenditure while compressing general expenditure. Fiscal expenditures were focused on agriculture, education, employment and social security, public **** health and other weak links in public **** services. Among other things, increasing fiscal support for agriculture and promoting the construction of a new socialist countryside are important elements of this year's fiscal expenditure policy. In line with the policy of comprehensively abolishing agricultural taxes, the central and local finances*** arranged for 103 billion yuan in transfer payments. Compared with 1999, the year before the reform, farmers' burdens were reduced by some 125 billion yuan, or 140 yuan per capita. The "three-subsidy" policy (direct subsidies for grain, subsidies for good seeds and subsidies for the purchase of agricultural machinery)*** issued subsidies amounting to 18.87 billion yuan. Beginning in the spring semester of 2006, all rural compulsory education students in western regions were exempted from miscellaneous fees, and the policy of exempting textbooks and subsidizing the living expenses of boarding students, as stipulated in the "two exemptions and one subsidy" policy, continued to be implemented. Some of these special funds have been centralized in the State Treasury, with the funds going directly to the schools, benefiting 48.8 million students, and reducing the burden on each primary school student by an average of 140 yuan, and that of junior high school students by 180 yuan. Each province in the central region chose one county to begin a pilot program in the fall semester, and most provinces in the eastern region also took the initiative to implement pilot reforms. the proportion of the central government's financial investment focused on building new socialist countryside reached about 48 percent in 2006, an increase of more than 3 percentage points from 2005.
In 1994, the reform of the tax-sharing fiscal system initially defined the fiscal system between the central government and provincial units, but did not define a unified sub-provincial fiscal system, leaving it up to the provinces to decide on their own according to their own circumstances. In recent years, contradictions in the operation of grass-roots finances have become more and more prominent, and problems such as the financial difficulties of counties and townships and the imbalance of financial resources between regions have become major issues affecting economic development and social stability, and have received widespread attention from all sectors of society. In order to solve problems in the operation of local finances, in recent years, localities have made adjustments of varying degrees to the sub-provincial tax-sharing system in the light of their own circumstances, with "county management of township finances" and "county management by the provincial government" being the major measures involved in the reform of the financial hierarchy. In 2006, 28 provinces nationwide implemented the reform of county management of township finances, and 18 provinces implemented the reform of direct provincial control of counties. However, there are some important issues in the reform process that need to be further analyzed and studied.
In 2006, the reform of the budget management system made new and important progress in some key areas and key links. Among them, on the basis of summarizing the experience of the simulated pilot reform of the classification of government income and expenditure accounts in 2005, the preparatory work for the reform of the classification of government income and expenditure accounts was completed, and the 2007 budget will be compiled using the new income and expenditure accounts. In addition, reforms in various areas, such as departmental budgets, centralized payment from the treasury, government procurement, management of the balance of national debt, and management of state-owned assets in administrative institutions, have all made progress to varying degrees.
In comparison with the tax reform of 1994, the tax reform currently underway is usually called the "new round of tax reform", and its basic principle can be summarized in 12 words: "simplify the tax system, broaden the tax base, lower the tax rate, and tighten the collection and management". The major progress made in the field of tax reform in 2006 includes the complete abolition of agricultural tax, adjustment of consumption tax items and tax rates, the adoption of the draft law on the merger of the two laws on income tax for domestic and foreign enterprises by the Standing Committee of the National People's Congress, the introduction of the self-declaration system for individual income tax, the adjustment of the policy on resource tax, and the adjustment of the export tax rebate rate for some products.
In recent years, the basic trend of China's fiscal policy can be summarized as the orientation of public ****ization, equalization as the goal, and standardization as the principle, to accelerate the improvement of the public **** financial system, to better serve the construction of a harmonious socialist society.
Policy implementation:
1 In 2005, China's tax system and tax policy in many aspects of the major reforms and adjustments, involving a large number of adjustments to the value-added tax and its export tax rebate policy, the systematization of the deduction of income tax on corporate property losses, the standardization of the corporate tax exemption and reduction policy, a substantial adjustment to the real estate tax policy, the modification of the Individual Income Tax Law and supporting policy etc. Changes in tax policies
,2 accelerate the construction of a number of transportation, energy and water conservancy infrastructure projects, and promote the construction of a number of key industrial and high-tech projects. Second, increase the policy and financial support for the equipment manufacturing industry, study the establishment of a special fund for the development of the equipment manufacturing industry. Relying on national key projects to improve the railroad, subway vehicles, shipbuilding infrastructure and key ship supporting equipment, major electric power, petrochemicals, large-scale construction machinery and other major technical equipment, system design, manufacturing and complete sets of capabilities. Third, the use of accelerated depreciation, investment credits, tax incentives and other policies to encourage enterprises to accelerate technological progress, promote industrial upgrading
3 financial region-oriented inputs: the central government to implement the development of the western region and the revitalization of the northeastern region, such as old industrial bases of the various preferential fiscal and tax policies. The central financial increase in budgetary recurrent construction investment, to the weak links of economic and social development, support the western development and the northeast region and other old industrial base revitalization. The National Development and Reform Commission (NDRC) issued a special (first batch) investment plan for special funds within the state budget (state bonds) for the adjustment and transformation of old industrial bases in the northeast and other key industries in 2005. In the 63 projects issued, the northeast region accounted for 40 projects, including 19 projects in Liaoning Province, Jilin Province, 8 projects, Heilongjiang Province, 9 projects, Dalian City, 3 projects, Harbin Power Station Equipment Group, 1 project. 63 projects with a total investment of 6.897 billion yuan, 580 million yuan of state bond funds, of which 4.407 billion yuan of the investment in the northeast region, accounting for 63.9% of the total investment; arrangements for the state bond funds 429 million yuan, accounting for the total amount of state bond funds, 4.5 billion yuan, accounting for the total amount of state bond funds. billion yuan, accounting for 73.8% of the total national debt funds.
4. Export tax rebates: In 2005, China's export tax rebates of 337.466 billion yuan, which is measured per dollar of export commodities comprehensive tax rebates for 0.4429 yuan. Than the national actual tax rebate of 219.6 billion yuan in 2004, an increase of 53.7%
Tax rebate ratio adjustment: reduce the local financial burden: January 1, 2005 onwards, the implementation of the adjustment of the central and local export tax rebate sharing ratio, approved by the State Council approved by the base of export tax rebates around the world remains unchanged, over the base of the part of the central and local sharing of the ratio of 75:25 changed to 92.5:7.5.
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5 Agricultural financial inputs: In 2005, 28 provinces have been exempted from agricultural tax, and 3 other provinces have lowered the agricultural tax rate to less than 2%. "Eleventh Five-Year Plan" in 2006, China will cancel all agricultural taxes, farmers will completely bid farewell to thousands of years of "imperial grain state tax".
Agricultural infrastructure investment: strengthen rural infrastructure and major water conservancy project construction, support food production, improve rural production and living conditions; Second, increase the basic education, public **** health system, public prosecutors and law enforcement facilities, ecological construction and environmental protection and other aspects of investment in the year, the central government for the "Three Rural" expenditure amounted to 297.5 billion yuan, more than the total expenditure on the "three rural areas" of the central government. The annual central financial expenditure for the "three rural" amounted to 297.5 billion yuan, an increase of 34.9 billion yuan over the previous year.
Agro-ecological ecological construction: the central financial support for forestry ecological construction. 2005, the central financial expenditure of 7.487 billion yuan of natural forest protection project funds to support the protection of 1.43 billion acres of natural forests; return of farmland to the forest expenditure of 29.031 billion yuan, the Beijing-Tianjin wind and sand source management project expenditure of 4.683 billion yuan, the cumulative support for the completion of the return of farmland to the forest of 135 million acres, the barren hills and wasteland afforestation of 184 million mu, closed the mountains and mountains to the forests, and the forests. The cumulative support for the completion of the return of farmland to forest 135 million mu, afforestation of deserted mountains and wastelands 184 million mu, closed forests 0.19 billion mu; forest ecological benefit compensation fund expenditure of 2 billion yuan, to support the protection of the key public welfare forests pilot area of 400 million mu. In 2005, 9.984 billion yuan was spent on pollution control funds, focusing on "three rivers and three lakes" and other key watersheds, water pollution control, environmental protection infrastructure construction in the central cities of the western region, and the construction of hazardous waste and medical waste disposal facilities.
6 financial investment in employment: to increase financial support for the expansion of employment, one is to expand investment to expand employment combined with employment, employment promotion of very small investment projects need to strictly control the land, tax, financial and other preferential policies. Increase the support for the service industry, non-public economy, small and medium-sized enterprises, labor-intensive enterprises and other employment growth points, such as the number of new jobs in a large number of enterprises, can be taken to the appropriate strength and appropriate period of tax exemptions, financial subsidies. Secondly, we should strengthen the policies of tax reduction and subsidy, support the unemployed to set up "micro-enterprises", and encourage university students and other high-level talents to start their own businesses by giving them financial and tax incentives for an appropriate period of time. In particular, the development of the tertiary industry should be accelerated. Thirdly, various non-profit and non-governmental organizations should be encouraged to develop public welfare jobs. Fourthly, we should expand the functions and manpower allocation of the state labor and social security departments, strengthen employment and re-employment training, and improve the employment and entrepreneurial ability of workers.
Increasing policy support and funding for employment and re-employment. in 2005, the central government arranged for 20.9 billion yuan of special subsidies for basic livelihood protection for laid-off workers in state-owned enterprises and for re-employment, an increase of 2.9 billion yuan over the previous year. The central financial authorities also coordinated the employment of new urban labourers, college graduates and demobilized veterans. The central government has also arranged special funds to support the transfer of rural labor force training and self-employment of urban retired soldiers.
Financial input into the welfare and social security system: the standard of pensions and subsidies for key beneficiaries has been significantly raised, with the central government arranging for 7.46 billion yuan in fees for beneficiaries, an increase of 90 percent over the previous year. Twenty-eight provinces (autonomous regions and municipalities) and 2,300 counties (municipalities) have initially established the basic framework of social assistance systems. Disaster relief and poverty alleviation efforts have increased. Throughout the year, the central financial authorities have spent 8.9 billion yuan on disaster relief, and have provided assistance to more than 90 million people affected by disasters. The central and local governments arranged 16.2 billion yuan of funds for poverty alleviation, and the number of poor people in rural areas decreased by 2.45 million compared with the previous year.
7 Financial Expenditures: Government Procurement: The Ministry of Finance recently released the "Statistical Analysis of National Government Procurement Information in 2005", which shows that the scale of national government procurement in 2005 reached 292.76 billion yuan, an increase of 37.1% over the same period of the previous year.