China Budget Highlights 2015

The Third Session of the Twelfth National People's Congress (NPC) (China’s Parliament) was held from 3-15 March 2015. On 5 March 2015, the annual budget was presented. It was adopted during the session.

The highlights of the Budget are given below.

A comparison with the Indian budget (2015-16) presented on 28 February 2015 to the Indian Parliament shows that:

• The Gross Tax Revenue estimate of INR 1449490 crore (approx. USD 231 billion) and Total Expenditure of INR 1777477crore (approx. USD 283.26 billion) is one tenth of the estimated Chinese revenue.
• The estimated deficit in China’s budget approximates the total Indian revenue.
• The Indian fiscal deficit will be 3.9 per cent of GDP and Revenue Deficit will be 2.8 per cent of GDP. China’s deficit to GDP ratio is 2.3% - a marginal increase from 2.1% the previous year.
• India and China both aim for a GDP growth rate of around 7% and job creation of approximately ten million.
• India’s Defence allocation of INR 246726crore (approx. USD 39.32 billion) is less than a third of China’s defence budget.
• China proposes to invest RMB 880 billion (approx. USD 141 billion) in Railways and open up over 8000 km. of railways to traffic.
• The increase of 4.3% in China’s public security budget is barely above the estimated inflation rate of 3%.
• China has significantly increased its social sector allocations with the highest increase (33%) being for building up food reserves.

Factsheet

Revenue in the general public budgets: RMB 14.03497 4 trillion (Approx. USD 2.24 trillion) This is an increase of 8.6% over 2013.

Adding the RMB 100 billion from the Central Budget Stabilization Fund, utilized revenue totaled RMB 14.13497 4 trillion.

Expenditure in the general public budgets: RMB 15.166154 trillion (Approx. USD 2.42 trillion)
This is an increase of 8.2%.

(Including the RMB 219.52 billion used to replenish the Central Budget Stabilization Fund and local budget stabilization funds and carried forward to the 2015 local budgets, and the RMB 99.3 billion used to repay the principal on local government bonds, expenditure totaled RMB 15.484974 trillion).

Deficit: RMB 1.35 trillion (Approx. USD 220 billion)

Select Sectoral allocations

National Defense: RMB 886.898 billion (an increase of 10.1 %) (Approx USD 141.5. billion)

Science and Technology RMB 275.725 billion (including RMB 17 billion carried forward from previous years), (an increase of 12.3%) (Approx USD 44 billion)

Food Reserves (for stockpiling grain, edible oils, and other materials) RMB 154.638 billion (an increase of 33.2%). (Approx USD 24.7 billion)
(This is mainly due to the increases in the subsidies to help pay expenses; interest on loans used for stockpiling grain and edible oils; subsidies for price differences in stockpiling grain and edible oils; and subsidies for making up losses in auctioning stockpiled cotton.)

Public Security RMB 154.192 billion (an increase of 4.3%) (Approx USD 24.6 billion)

Education RMB 135.151 billion (including RMB 6 billion carried forward from previous years), (an increase of 8.8%). (Approx USD 21.5 billion)

General Public Services RMB 100.491 billion ((Approx USD 16 billion)

Transport RMB 80.689 billion. (Approx USD 13 billion)

Social security and Employment RMB 72.93 billion (an increase of 4.2%) (Approx USD 11.6 billion)

Aagriculture, Forestry, and Water Connservancy is 66.062 billion (an increase of 18.6%) (Approx USD 10.5 billion)

Natural resource exploration and Information Technology: RMB 29.684 billion. (Approx USD 4.7 billion)

Eenergy Conservation and Environmental Protection RMB 29.125 billion (Approx USD 4 billion)

Culture, Sports, and the Media RMB 24.921 billion, (an increase of 6.4%) (Approx USD 4 billion)

Medical and Health care and Family Planning RMB 11.019 billion, (an increase of 22.1%) (Approx USD 1.7 billion)

A total of 4.9 billion yuan which has been carried forward from previous years is to be used for standardizing allowances and subsidies for public servants

(Source: Ministry of Finance, PRC document submitted to the NPC 5 March 2015)(The official Xinhua version is awaited)

(VIF China Studies Centre) 19 March 2015