The following is an overview of the major issues in the implementation of the budgets in 2009:

1. Fiscal revenue of the central government

It was more difficult in 2009 than in any other recent year to reach the budgeted figure for fiscal revenue. Financial departments at all levels as well as tax and customs departments resolutely implemented the decisions and arrangements of the central leadership, conscientiously carried out a proactive fiscal policy, energetically promoted steady and rapid economic development, and laid a foundation for increasing revenue. At the same time, they genuinely made fiscal management more scientific and meticulous, strictly collected and managed revenue in accordance with the law, adopted measures to increase revenue such as adjusting the sales tax on tobacco products and pursuing taxpayers with unpaid tax bills from previous years, and ensured they reached their budgeted revenue targets for the year.

Main sources of revenue in the central budget. Domestic VAT revenue was 1.391599 trillion yuan, 95.6% of the budgeted figure and an increase of 3.1%. The shortfall was mainly due to decreased revenue from a decline in producer prices of manufactured goods. Domestic sales tax revenue was 475.912 billion yuan, 107.3% of the budgeted figure and an increase of 85.3%. Surplus revenue derived mainly from increasing tax rates on tobacco products during implementation of the budget. Revenue from VAT and sales tax on imports was 772.915 billion yuan, 96.7% of the budgeted figure and an increase of 4.6%. Revenue from customs duties was 148.357 billion yuan, 78.1% of the budgeted figure and a decrease of 16.2%. The main reason for this shortfall was that the total volume of imports fell considerably short of predictions. VAT and sales tax rebates on exports amounted to 648.656 billion yuan (which represents a decrease in revenue by the same amount), 96.7% of the budgeted figure and an increase of 10.6%. The main reason for this shortfall was that the total volume of exports fell considerably short of predictions. Corporate income tax revenue was 761.882 billion yuan, 100.2% of the budgeted figure and an increase of 6.2%. Personal income tax revenue was 236.672 billion yuan, 99% of the budgeted figure and an increase of 5.9%. Revenue from stamp tax on securities transactions was 49.504 billion yuan, 202.1% of the budgeted figure and a decrease of 47.9%. Revenue from this source exceeded the budgeted figure because securities transactions exceeded expectations. Revenue from vehicle purchase tax was 116.317 billion yuan, 119.9% of the budgeted figure and an increase of 17.5%, mainly due to the rapid increase in sales of motor vehicles. Non-tax revenue was 253.666 billion yuan, 123.6% of the budgeted figure and an increase of 48.2%. This increase was mainly attributable to the collection of back taxes owed by enterprises for special surcharges on oil sales.