The following is the full text of the Report on the Implementation of the Central and Local Budgets for 2008 and on the Draft Central and Local Budgets for 2009, which was submitted for review on March 5, 2009 at the Second Session of the Eleventh National People's Congress and was adopted on March 13:

Report on the implementation of the central and local budgets

For 2008 and on the draft central and local budgets for 2009

Second Session of the Eleventh National People's Congress March 5, 2009

Ministry of Finance of the People's Republic of China

Fellow Deputies,

The Ministry of Finance has been entrusted by the State Council to report on the implementation of the central and local budgets for 2008 and submit the draft central and local budgets for 2009 for your deliberation and approval, and also for comments and suggestions from the members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

I. Implementation of the Central and Local Budgets for 2008

In the face of the grim and complex situations at home and abroad, the people of all our ethnic groups under the correct leadership of the Communist Party of China and the guidance of Deng Xiaoping Theory and the important thought of Three Represents, thoroughly applied the Scientific Outlook on Development and comprehensively implemented the principles and policies of the central leadership and the decisions and resolutions of the First Session of the Eleventh National People's Congress (NPC) in 2008. As a result, we made major continued achievements in reform, opening up and socialist modernization. The central and local budgets were satisfactorily implemented and fresh progress was made in reform and development of the public finance system.

National revenue reached 6.13169 trillion yuan, an increase of 999.512 billion yuan or 19.5% over 2007 (both here and below), equivalent to 104.8% of the target. This consists of 3.267199 trillion yuan collected by the central government and 2.864491 trillion yuan collected by local governments. Added to the 110 billion yuan taken from the central budget stabilization fund, total revenue came to 6.24169 trillion yuan. National expenditures amounted to 6.242703 trillion yuan, an increase of 1.264568 trillion yuan or 25.4%, equivalent to 101.7% of the target. This figure consists of 1.337431 trillion yuan used by the central government and 4.905272 trillion yuan used by local governments. Added to the 19.2 billion yuan set aside for the central budget stabilization fund, total expenditures amounted to 6.261903 trillion yuan.

Revenue in the central budget totaled 3.361192 trillion yuan, an increase of 499.997 billion yuan or 17.5%, equivalent to 103.3%of the target. This consists of 3.267199 trillion yuan directly collected by the central government and 93.993 billion yuan turnedover by local governments. Added to the 110 billion yuan from the central budget stabilization fund, total revenue came to 3.471192 trillion yuan. Expenditures in the central budget totaled 3.631992 trillion yuan, an increase of 673.997 billion yuan or 22.8%, equivalent to 102.5% of the target. This figure consists of 1.337431 trillion yuan used by the central government and 2.294561trillion yuan in tax rebates and transfer payments to local governments. A total of 19.2 billion yuan was set aside for the central budget stabilization fund. Total expenditures thus added up to 3.651192 trillion yuan. Expenditures exceeded revenue, leaving a deficit of 180 billion yuan, which was within the target approved at the First Session of the Eleventh NPC. The outstanding balance of government bonds in the central budget at the end of 2008 totaled 5.327076 trillion yuan, which was under the set limit of 5.518585 trillion yuan.