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Report on China's Central, Local Budgets

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13) A total of 188.72 billion yuan has been set aside for transportation, an increase of 28.691 billion yuan or 17.9%. A total of 54.86 billion yuan will be spent on accelerating construction of the Beijing-Shanghai Expressway, trunk railway lines for developing resources in the western region, inland channels and feeder-line airports in the central and western regions. More funding will be given to building rural highways, assistance levels will be raised for ethnic minority areas, border areas and poor areas, and 54.8 billion yuan has been set aside for building or improving 300,000 kilometers of rural highways. A total of 16.842 billion yuan will be used to subsidize urban pubic transportation, rural passenger transportation and taxi services. Reform of taxes and fees for refined petroleum products will be carried out in 2009 and tolls are gradually and systematically being phased out on government-financed Grade II roads. After the reform, special subsidies from the central budget will be given for the expenses for repaying the costs of such roads and other expenses formerly derived from road tolls, which will increase transportation expenditures by a corresponding amount.

14) Spending on ordinary public services will total 131.361 billion yuan, an increase of 9.696 billion yuan or 8%. Through strict control of ordinary expenses and comprehensive use of surplus funds, the central government will spend 101.386 billion yuan on this item, a decrease of 4.629 billion yuan or 4.4%. A total of 29.975 billion yuan in assistance will be provided to local governments to award grants to personnel leaving the service to find employment on their own, prevent and control devastating geological disasters and strengthen inspection and protection of geological and mining resources, an increase of 14.325 billion yuan or 91.59%.

15) Expenditures to pay interest on government bonds will total137.185 billion yuan, an increase of 9.316 billion yuan or 7.3%.

Analysis of the above expenditure items shows that in 2009 the central government will spend a total of 728.463 billion yuan on education, medical and health care, the social safety net, employment, low-income housing and culture that are directly related to the people's wellbeing, an increase of 165.334 billion yuan or 29.4% in comparable terms. The central government has set aside a total of 716.14 billion yuan to help agriculture, rural areas and farmers, an increase of 120.59 billion yuan or 20.2%. This figure includes 264.22 billion yuan to support agricultural production, 123.08 billion yuan for direct subsidies to grain producers, general allowances for purchasing agricultural supplies and allowances for planting superior varieties and purchasing agricultural machinery and tools, 269.32 billion yuan for rural education, medical and health care, the social safety net, employment, low-income housing and cultural programs, and 57.62 billion yuan for expenses for stockpiling major agricultural products and paying interest associated therewith. Tax rebates and general transfer payments from the central government to local governments will total 1.378869 trillion yuan, which will be primarily used to improve the people's wellbeing and benefit agriculture, rural areas and farmers.

5. Expenditures of the central government for tax rebates and transfer payments to local governments

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