Total individual income taxes should reach 239 billion yuan, an increase of 15.582 billion yuan, or 7%. The main considerations used to compile this figure are the higher earnings threshold for the individual income tax effective as of March 1, 2008, temporary scrapping of individual income taxes on interest from savings and stock account balance instituted on October 9, as well as the projected increase in per capita disposable income of urban residents.

Total revenue from the stamp tax on securities transactions should reach 24.5 billion yuan, a drop of 70.468 billion yuan or 74.2%. The main factors behind this figure are the projected daily trade volume for securities plus the large reduction in the stamp tax rate and the scrapping of the stamp tax on stock purchases, and changes instituted in 2008 that will reduce revenue.

Export tax rebates should total 670.8 billion yuan, an increase of 84.21 billion yuan or 14.4%, which will result in a corresponding decrease in government revenue. The main factors taken into consideration were the projected growth in ordinary export trade and the series of increases in export tax rebate rates for some products instituted in the last half of 2008, which will result in a large margin of increase in total export tax rebates in 2009.

The vehicle purchase tax should reach 97 billion yuan, a decline of 1.975 billion yuan or 2%. This figure is mainly based on projected growth in vehicle sales and a reduction in the tax rate for the purchase of passenger vehicles with engine displacements at or under 1.6L to 5%.

4. Main expenditure items as provided for in the central government budget

We will further adjust the structure of expenditures, take into consideration all factors and maintain some expenditures while reducing others in accordance with the central government's policy of expanding domestic demand, sustaining growth, carrying out restructuring and improving the people's wellbeing. Expenditures will focus on agriculture, education, medical and health care, the social safety net, employment, low-income housing, science and technology, environmental protection and post-earthquake recovery and reconstruction. Main expenditure items are as follows.

1) A total of 344.659 billion yuan has been allocated for expenditures related to agriculture, rural areas and farmers, forest projects and water conservancy projects, an increase of 74.439 billion yuan or 27.5%. We will stabilize and develop grain production to increase rural incomes. An allocation of 75.6 billion yuan has been earmarked for general allowances for agricultural supplies, an increase of 5.6%. The total allowances for the purchase of agricultural machinery and tools have increased by a large margin. The allocation for 2009 is 13 billion yuan, a 2.25-fold increase, to expand the types of allowances from9 to 12 and to cover all agricultural and animal husbandry counties throughout the country. We will increase funding for allowances for planting superior seed varieties. A total allocation of 15.48 billion yuan, an increase of 25.4%, will be used to grant such allowances to more farmers who plant superior varieties of crops such as wheat and corn as such allowances are now to be granted to all farmers planting superior paddy rice strains. We will support efforts to add 50 million tons of grain growing capacity across the country step by step and in accordance with plan. We will institute a new poverty line and implement a new policy for providing support to the low-income rural population with a total appropriation there for of 19.73 billion yuan, an increase of 17.9%. We will promote agricultural restructuring. We have allocated 6.5 billion yuan for development of modern agricultural production, an increase of 20.4%, and we will support different areas in growing those crops that are best suited to their local conditions, have distinctive local characteristics and increase agricultural safety and efficiency. We will improve low-cost lending and assistance to promote the industrialization of agriculture. Overall agricultural development funds will total 14.7 billion yuan, an increase of 15.7%, and we will accelerate efforts to improve average and poor-yield farmland to increase overall agricultural production capacity, concentrating on the main grain-producing areas. We will formulate a suitable increase in the ratio for the cultivation allowance based on efforts to stabilize the current policy of allowances for paying agricultural insurance policy premiums and gradually expand the number of varieties eligible for the allowance. These steps will be financed by an allocation of 7.98 billion yuan, an increase of 31.9%. A total of 129.51 billion yuan has been allocated to develop agricultural infrastructure, provide strong support for the efforts to accelerate the reinforcement of dilapidated large and medium-sized and key small reservoirs, improve irrigated areas and build small water conservancy facilities. We will increase spending on projects for supplying safe drinking water and methane to rural areas by providing safe drinking water to another 60 million people and methane to an additional 5 million families.