Factoids from the China Budget

Factoids from the China Budget

March 7, 2006

China watchers should take a look at the following CCTV article reporting on economic performance in 2005 and the new budget for 2006.

A few of the more interesting points. In 2005, the country’s fiscal revenue exceeded 3 trillion yuan, and the GDP grew at a rate of nearly 10 percent.

In 2005, tax revenues exceeded 3 trillion yuan, or 375-billion US dollars. That’s an increase of 19.8 percent, or more than 62 billion US dollars, from 2004. The budget deficit accounts for 1.6 percent of China’s total GDP.

In the past year, the central government spent nearly 300 billion yuan, or 37.5 billion US dollars in promoting agricultural development and helping increase farmers’ income, an increase of over 13 percent over 2004.

More than 360 billion yuan, or 43 billion US dollars, was spent on providing reemployment and social security guarantees, an over 17 percent increase compared to 2004.

The central government also continued furthering fiscal and tax reforms in 2005. It conducted a trial plan for value-added-tax reform and adjusted the individual income tax.

The budget for 2006 will raise the revenues to nearly 2 trillion yuan, or 11.7 percent, to over 250 billion US dollars. The revenue will be used to provide compulsory education in rural areas. In 2006, a trial reform will be carried out in 12 provinces, autonomous regions and municipalities to set up a free compulsory education funding guarantee system. In 2007, rural areas across country will enjoy free compulsory education.

China’s GDP has exceeded 18 trillion yuan, or more than 2.2 trillion US dollars, a 9.9 percent increase over 2004.

Total import and export volume exceeded 1.4 trillion US dollars, a of over 23 percent increase over 2004.

In the budget plan for 2006, GDP growth is 8 percent and 9 million jobs must be created to keep the unemployment rate below 4.6 percent. Inflation is less than 3 percent. Overseas trade volumed increases by 15 percent. And disposable income of urban and rural residents should increases by 5 percent.

That’s the competition, folks. We need to quit whining and get back to work.

JR

John Rutledge

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