Explanatory Notes on Main Statistical Indicators

Government Revenue refers to income for the government finance through participating in the distribution of social products. It is the financial guarantee to ensure government functioning. The contents of government revenue include the following main items:

(1) Various tax revenues, including domestic value added tax (VAT), domestic consumption tax, VAT and consumption tax from imports, VAT and consumption tax rebate for exports, business tax, corporate income tax, individual income tax, resource tax, city maintenance and construct tax, house property tax, stamp tax, urban land use tax, land appreciation tax, tax on vehicles and boat operation, ship tonnage tax, vehicle purchase tax, tariffs, farm land occupation tax, deed tax, and tobacco leaf tax, etc.

(2) Non-tax revenue, including special program receipts, charge of administrative and institutional units, penalty receipts and others non-tax receipts.

Government Expenditure refers to the distribution and use of the funds which the government finance has raised, so as to meet the needs of economic construction and various causes. It includes the following main items:

(1) Expenditure for general public services: It refers to the spending on the basic public management and services which provided by governments, including the expense on affairs of People’s Congress, affairs of People’s Political Consultative Conference, affairs of government general office and relative institutions, affairs of development and reform, affairs of statistics, affairs of finance, affairs of taxation, affairs of audit, affairs of customs, affairs of human resources and social security, affairs of discipline inspection and supervision, affairs of population and family planning, affairs of commerce and trade, affairs of intellectual property, affairs of administration for industry and commerce, affairs of land and resources, affairs of oceanic administration, affairs of surveying and mapping, affairs of earthquake, ethnic affairs, religious affairs, affairs of Hong Kong, Macao, Taiwan, and Overseas Chinese, affairs of archives administration, affairs of Chinese Communist Party, affairs of democratic parties and federation of industry and commerce, affairs of mass organization, and affairs of lottery, etc.

(2) Expenditure for foreign affairs: It refers to the spending of government on foreign affairs, including the expense on administration of foreign affairs, missions overseas, external assistance, international organizations, foreign cooperation and communication, surveying and joint inspection on borderline, etc.

(3) Expenditure for national defence: It refers to the spending of government on national defence, including the expense on active force, reserve force, militia, scientific research on national defence, special projects, mobilization of national defence, etc.

(4) Expenditure for public security: It refers to the spending of government on maintaining social and public security, including the expense on armed police force, public security, state security, prosecution, courts, justice, prison, labour education and rehabilitation, protection of state secrecy, anti-smuggling police, etc.

(5) Expenditure for education: It refers to the spending of government on education, including the expense on the administration of education, pre-primary education, primary education, secondary education, high school education, regular higher education, primary vocational education, secondary vocational education, technical school education, vocational high school education and higher vocational education, radio and television education, student abroad education, special education, on the job training of cadres, education authorities services, etc.

(6) Expenditure for science and technology: It refers to the spending of government on science and technology (S&T), including the expense on the administration of S&T, basic research, applied research, research and development, conditions and services of S&T, popularization of social science, science and technology, exchanges and cooperation of S&T, etc.

(7) Expenditure for culture, sport and media: It refers to the spending of government on culture, cultural heritage, sports, radio, film, television, press and publication, etc.

(8) Expenditure for social safety net and employment effort: It refers to the spending of government on social safety net and employment, including the expense on administration of social safety net and employment, civil affairs, budgetary subsidy on the social insurance funds, subsidy on National Social Security Fund, retirees of administrative units and institutions, subsidy on enterprise reform, subsidy on employment effort, pension, placement of ex-serviceman, social welfare, the handicapped undertakings, the system of cost of living allowances for urban residents, other urban social relief, rural social relief, living relief of natural disasters, affairs of Red Cross Society, etc.

(9) Expenditure for medical and health care: It refers to the spending of government on medical and health care, including the expense on administration of medical and health care, medical services, health care, disease prevention and control, health inspection and supervision, women and children's health, rural health care, etc.

(10) Expenditure for environment protection: It refers to the spending of government on environment protection, including the expense on administration of environment protection, environment monitoring and supervision, pollution control, natural ecology protection, project of virgin forests protection, reforesting farmland, controlling the sources of dust storms, returning pastureland to grassland, returning pastureland to grassland, returning cultivated land to grassland, energy conservation, emissions reduction, comprehensive utilization of renewable energy and resources, etc.

(11) Expenditure for urban and rural community affairs: It refers to the spending of government on urban and rural community affairs, including the expense on administration of urban and rural community, planning and management of urban and rural community, public facilities of urban and rural community, housing of urban and rural community, sanitation of urban and rural community, management and supervision on the construction market, etc.

(12) Expenditure for agriculture, forestry and water conservancy: It refers to the spending of government on agriculture, forestry and water conservancy, including the expense on agriculture, forestry, water conservancy, poverty alleviation, comprehensive agricultural development, etc.

(13) Expenditure for transportation: It refers to the spending of government on transportation and postal services, including the expense on road transportation, waterway transportation, railway transportation, civil aviation transportation, and postal services.

(14) Expenditure for industry, commerce and banking: It refers to the spending of government on industry, commerce and banking, including the expense on mining, manufacturing, construction, industry and information technology supervision and administration, State-owned assets supervision and administration, commerce and circulation affairs, financial intermediation supervision and administration, tourism administration and service, etc.

Revenue of the Central Government and Revenue of the Local Governments refers to the revenue collected by the Central Government and that by the local governments as defined by the decentralized taxation system. In accordance with this system, the revenue of the Central Government includes tariff, VAT and consumption tax from imports, VAT and consumption tax rebate for exports, consumption tax, business tax and city maintenance and construct tax from the Ministry of Railways, head offices of banks, head offices of insurance company, which are handed over to the government in a centralized way, 75% of the value added tax, 60% the share part of the corporate income tax, unshared part of corporate income tax of the central enterprises, profit handed in by the central enterprises, 60% of individual income tax, vehicle purchase tax, ship tonnage tax, 97% of stamp tax on securities transactions, resource tax on the offshore petroleum resources. The revenue of the local governments includes business tax (excluding the part of the Ministry of Railways, head offices of banks, head offices of insurance company, which are handed over to the government in a centralized way), profit handed in by the local enterprises, city maintenance and construct tax (excluding the part of the Ministry of Railways, head offices of banks, head offices of insurance company, which are handed over to the government in a centralized way), house property tax, urban land use tax, land appreciation tax, tax on vehicles and boat operation, farm land occupation tax, deed tax, and tobacco leaf tax, stamp tax, 25% of the value added tax, 40% the share part of the corporate income tax, 40% of individual income tax, 3% of stamp tax on securities transactions, resource tax other than the tax on offshore petroleum resources, local non-tax revenue, etc.

Expenditure of the Central Government and Expenditure of the Local Governments according to the different functions of the Central Government and local governments in economic and social activities, the rights of affairs administration are demarcated between those of the Central Government and those of local governments; and the classification of the expenditure between the Central Government and local governments are made on the basis of the classification of the rights of affairs administration between them. The expenditure of the Central Government includes the expenditure for general public services, expenditure for foreign affairs, expenditure for public security, and the expenditure of the Central Government for adjusting the national economic structure; coordinating the development among different regions; and exercising macroeconomic regulation. The expenditure of the local governments includes mainly the expenditure for general public services, expenditure for public security, and expenditures for social development which are planed by local governments, etc.