A special committee of the National People's Congress (NPC), China's top legislature, rated in Beijing Thursday the government's proposed budgetary plan as being "workable".
Liu Jibin, vice chairman of the NPC Financial and Economic Committee (FEC), made the above remarks to a presidium meeting of the NPC session on behalf of the committee.
According to Chinese laws and regulations, the FEC is responsible for reporting to the presidium about the result of the examination on previous year's budgetary performance and the budget for the current year, based on opinions of NPC deputies and other special NPC committees.
The State Council and governments at various levels have seriously implemented the 2004 budget as planned, strengthened macro-control measures to boost economy and increased revenues by large margin, according to FEC.
"The national finance has played a key role in maintaining a stable and fast development of the national economy, further promoting reform and opening-up and making an all-round social progress last year," said Liu in his report.
The vice chairman also listed some difficulties and problems yet to be addressed in this year's budgetary performance, including problems concerning the rural areas, agriculture and farmers, the social security system and further extending compulsory education in rural areas.
Based on opinions of the deputies and special NPC committees, the FEC raised several suggestions in regard to implementation of the 2005 budget.
"The government should strengthen regulation and control over tax collection and ensure that revenues increase stably, and financial support to the rural areas, agriculture and farmers be continuously enhanced," Liu said.
In addition, governments at various levels should give priority to "supporting employment and re-employment work and establishing and improving a social security system."
The FEC also called for a "careful study" on fiscal and tax policies that might generate fundamental changes in the mode of economic growth and urged governments at various levels to "actively deepen fiscal and tax reforms".
"An uniform income tax standard conducive to both domestic and foreign enterprises should be established as soon as possible," said Liu.
The FEC also proposed greater efforts to administrate budget, supervise auditing and combat waste and extravagance.
Liu's report, together with a draft resolution to adopt the report, was ratified by the presidium, which have decided to submit the report and draft resolution to the top legislature for further deliberation and final approval.
(Xinhua News Agency March 11, 2005)
