In 2001, the Chinese government plans to issue 50 billion yuan (US$6.05 billion) of special treasury bonds to be used mainly to support implementation of the strategy of large- scale development of the country's west.
This was disclosed by Xiang Huaicheng, minister of finance, in his Report on the Central and Local Budgets for 2000 and the Draft Central and Local Budgets for 2001 on Tuesday, the second day of the Fourth Session of the Ninth National People's Congress (NPC).
According to principles formulated at the Fifth Plenary Session of the Fifteenth Central Committee of the Communist Party of China (CPC) and Conference on Economic Work held by the Party Central Committee, the government will continue to implement a pro-active fiscal policy to consolidate and develop the current good economic situation and promote a steady recovery of the domestic economy.
A total of 100 billion yuan of treasury bonds will be issued for construction, 60 billion yuan of which is listed in the central budget and 40 billion yuan of which is to be issued by the central government in the name of local authorities.
In addition, China will issue 50 billion yuan of special treasury bonds to be used mainly to support implementation of the strategy of large-scale development of west China. The bonds will be used to build projects to pipe natural gas and transmit electricity from western to eastern regions, divert water from the south to the north, build the Qinghai-Tibet railway and improve the ecological environment.
In 2001, wages and salaries of employees in government departments and institutions will be readjusted in several ways; basic wages and salaries of employees in government departments and institutions will be increased; an allowance system will be introduced for people working in remote areas where conditions are harsh; and a system of wage and salary increases for good work performance will be instituted, the official revealed.
He also promised to increase social security expenditures to ensure social stability, noting that speeding up the establishment of a sound social security system is an important way of ensuring success in efforts to promote reform of state-owned enterprises, maintain social stability and achieve sustainable social development.
This year, the government will promote and support the reform of taxes and fees in rural areas so as to substantially lighten financial load on farmers, the official said.
To ensure normal functioning of organizations of political power at lower levels and smooth development of public undertakings during the reform of taxes and fees in rural areas, the central government will grant appropriate subsidies to compensate for policy-related reduction in revenue caused by promotion of the reform, he said.
(Xinhua 03/06/2001)
