Over the past 21 years of reform and opening to the
outside world, with the rapid development of the national
economy and the deepening of the reform in finance and
taxation, the goal of fiscal solvency has been becoming
nearer. In 1978, the state financial revenue was 113.2
billion yuan, while it reached 1,137.7 billion yuan in 1999.
Especially in 1999, the Chinese government continued to
implement an active financial policy, expanding the domestic
market by various means, including increasing state debt
investment, which played a key role in stimulating the
economy.
Taxation is a major source of the
state financial revenue. In 1978, all kinds of taxation
brought in a total of 51.93 billion yuan; in 1999, the
figure was 1,031.1 billion yuan. The accumulated taxation
income was 7,435.2 billion yuan from 1979 to 1999. Since the
reform, the distribution relationship between the central
and local finances has been gradually smoothed, a system of
tax distribution under which central finances are growing in
a stable manner has been established, micro-control over
central finances has been improved, and a basis for standard
transfer payments has been set up. Among the state financial
revenue, central finances accounted for 17.58 billion yuan
in 1978—15.5 percent of the total; in 1999, the figure
was 579.8 billion yuan—51.0 percent of the total.
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