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Report on China's Central, Local Budgets

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8) Expenditures for science and technology will total 146.103 billion yuan, an increase of 29.774 billion yuan or 25.6%. A totalof 93.801 billion yuan will apply to speed up advances and independent innovation in science and technology, promote strategic economic restructuring, and increase financing for basic research and application research. Another 32.8 billion yuan has been earmarked to ensure the success of major science and technology projects. We will support efforts to improve research conditions and capacity in (key) national laboratories, scientific research institutes and universities. We will promote technological upgrading and independent innovation in enterprises, speed up development of new- and high- technology industries and the equipment manufacturing industry, and promote the conversion of advances in new and high technology into actual production. We will support development of small and medium-sized enterprises and technological innovation. We will promote development of regional science and technology innovation systems and organic integration of enterprises, universities and research institutes.

9) A total of 123.662 billion yuan has been set aside for environmental protection, an increase of 19.632 billion yuan or 18.9%. A total of 49.5 billion yuan for energy conservation and emissions reduction, an increase of 17%, will be spent on retrofitting energy-conserving technology, retiring backward production facilities, increasing application of efficient, energy-conserving products and alternative-fuel vehicles, controlling and preventing water pollution in the areas around the Huai, Hai, Liao and Songhua rivers and Tai, Chao and Dianchi lakes, and developing the pipelines to complete urban wastewater and garbage treatment facilities and major emissions reduction projects in the central and western regions. We will improve the compensation system for the exploitation of coal and other mineral resources and the mechanism for compensation for damage to the ecosystem. We will promote development of new energy resources and renewable energy sources. Another 52.096 billion yuan will go to work on key projects such as those to protect natural forests, return farmland to forest and restore pasturage to natural grassland.

10) Expenditures for public security will total 116.131 billion yuan, an increase of 28.554 billion yuan or 32.6%. The funding mechanism for procuratorial, judicial and public security departments will be reformed to implement a policy of budgeting expenses according to the type of department, financial assistance for local procuratorial, judicial and public security departments, especially lower-level departments in the central and western regions, will be increased, a mechanism for regular increases in allocations for ordinary expenses will be set up and efforts will be made to strengthen public security and armed police forces and make them more informationized.

11) A total of 108 billion yuan has been earmarked to finance post-earthquake recovery and reconstruction. Another 14 billion yuan has been contributed from income from state capital operations, 5 billion from the state lottery fund and 3 billion from the central government's portion of land-use fees for new land for construction. All this adds up to 130 billion yuan in the central government fund for post-earthquake recovery and reconstruction, which will be used to build and repair housing and infrastructure, rebuild industry, and restore the ecosystem in the urban and rural areas hit by the earthquake in accordance with the plan.

12) Expenditures for national defense will total 472.867 billion yuan, an increase of 62.726 billion yuan or 15.3%. These funds will be used to improve the living conditions and benefits of military officers and enlisted personnel, render the army more informationized, increase the amount of equipment and support facilities by an appropriate amount, improve the ability of the army to respond to emergencies and disasters and support the repair and rebuilding of military infrastructure facilities in and around Wenchuan, Sichuan hit by the earthquake.

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