Brief Introduction

I. Main Contents and Sources of Data

The data in this chapter present the government revenue and expenditure situation. The data come from the Ministry of Finance. The data are based on final State financial accounts, final extra-budgetary revenue and expenditure accounts and related financial reports.

The final State financial accounts are composed of the final accounts at the level of Central Government and the total final accounts at the level of local governments. The total final accounts at the provincial (autonomous region, municipality directly under the Central Government) level are composed of the final accounts at the provincial level and the total final accounts at the level of governments of prefectures and counties (cities). The total final accounts at the level of local governments are composed of the final accounts of the governments of provinces, autonomous regions and municipalities directly under the Central Government.

The final accounts at the central level, at the provincial level and at the county (city) level are respectively composed of the final accounts of the administrative and institutional units, the final financial accounts of enterprises, the final financial accounts of capital construction, the annual reports on treasury and the annual reports on tax revenue, pooled together by the responsible departments at the same level.

In order to ensure the accuracy and completeness of the data of final accounts, the financial departments at different levels would check the budgetary data of the higher and lower levels of the whole year before the end of the year, including the related figures of the total government budgets between different levels, the related figures between the total government budget and the budgets of the departments and the related figures between the budget of the departments and the budgets of the subordinate units. After the end of the year, the financial departments of different levels and the State Treasury would check the data of the revenue in the final accounts together with the units which submit budgeted revenues, fill out the accounts checking sheet, sign and report to the respective higher authorities.

In order to ensure the consistency in the coverage of the final accounts, the Ministry of Finance works out and issues the forms for the final account for the provinces, autonomous regions and municipalities directly under the Central Government and the forms for the final accounts for the departments at the central level. The financial departments at various levels and the Central Government departments would also work out and issue the forms for the final accounts in the light of the specific departmental conditions to the departments or units at the lower level. The forms for the final accounts are designed in accordance with the composition of the State final account and are composed of the forms for the total final accounts suitable for the financial departments of different levels and the forms for the unit final accounts suitable for the budgetary agencies of the responsible departments or units. The data for the final accounts are filled out in accordance with the data in the account books of the total budget or unit budget.

Data on government revenue and expenditure are compiled on the basis of information from the total final accounts table of revenue and expenditure, the subsidiary table of the final accounts of revenue, and the subsidiary table of the final accounts of expenditure.

The procedures for the compilation of the extra-budgetary revenue and expenditure final account and the related financial tables are basically the same as those for the compilation of the State final accounts.

II. Change of Statistical Scope and Data Adjustment

Owing to changes in the financial system and in the methods of compiling and listing the items of the budget, the coverage of the government revenue and expenditure and their breakdowns are not consistent over the years. In view of this situation, the data concerned in this yearbook have been adjusted so as to make them basically comparable over the years. The main adjusted items are as follows:

(1) Government revenue: The revenues from the domestic and foreign debts in 1993 and the previous years are deducted from government revenue and no longer listed as a component of government revenue. The financial subsidies on the price adjustment in 1978-1985 were listed formerly as an item to discount part of the government revenue; they are now listed as an item of government expenditure. Correspondingly, the original item “revenue from debts under the government revenue by account item” is now cancelled.

(2) Government expenditure: The expenditure for repayment of the principal and interest of the domestic and foreign debts in 1993 and the previous years are deducted from government expenditure and no longer listed as a component of government expenditure. The financial subsidies on the price adjustment in 1978-1985, which were listed formerly as an item to discount part of the government revenue, are now listed as an item of government expenditure. Correspondingly, the original item “expenditure for debts under government expenditure by account item” and the government expenditure by general categories is cancelled; the expenditure for capital construction under the government expenditure by account item no longer includes the expenditure for capital construction resulting from the utilization of foreign loans; the related items under the government expenditure by general categories have also been adjusted. Total government expenditure includes the payment for capital and its interest of domestic and foreign debts since 2000.

(3) Revenue and expenditure of the Central Government and local governments. According to the above-mentioned adjustments in the government revenue and expenditure, adjustments are also made in the revenue and expenditure of the Central Government correspondingly and in the revenue and expenditure of the local governments in a few years. The tables on “Government Revenue of the Central Government and Local Governments and Ratios” and “Government Expenditure of the Central Government and Local Governments and Ratios” show the revenues and expenditures of the Central Government and local governments of the years. The changes in the financial structure and in the subordinate relationship of the enterprises have impact on the revenues and expenditures of the Central Government and local governments. However, no adjustments have been made in the data of the past years. In addition, there are also appropriate adaptations made in the specific conditions in the relationship between the Central Government and local governments: Sometimes some local governments hand certain amount of their funds over to the central government; Sometimes the central government pays subsidies to the difficult provinces and autonomous regions or send back parts of the tax revenue to the local government. Therefore the tables on “Government Revenue of the Central Government and Local Governments and Ratios” and “Government Expenditure of the Central Government and Local Governments and Ratios” do not show the real financial strengths of the governments at different levels.

Data on the extra-budgetary funds have been collected in accordance with the statistical reporting scheme since 1982. Changes have been made in the items in the extra-budgetary revenue and the extra-budgetary expenditure several times. In 1993, new general financial rules and accounting standards were implemented. As a result, rather significant changes have been made again in the scope of extra-budgetary revenue and extra-budgetary expenditure. The innovation fund and the major repair fund in the State-owned enterprises were no longer listed as extra-budgetary funds. Therefore the extra-budgetary revenues and the extra-budgetary expenditures in the years before 1993 and since 1993 are not comparable. Starting from 1997, government funds (revenue from fees) have been reclassified into budget management and have not been included in the extra-budgetary revenue and expenditure. Therefore, figures since 1997 are not comparable with earlier figures.