Chinanews, Beijing, Mar. 7 – China’s GDP has witnessed a double-digit growth for years and as a result, China’s state revenue has also increased substantially. When the state revenue is abundant now, the Ministry of Finance (MOF) has decided to allocate 50 billion yuan from the state revenue as adjustment fund so that when the state revenue falls short of the national budget in a particular year, this fund can be used to balance the national budget.

 

Chinese economy has developed very well in recent years and state revenue has increased rapidly. The Ministry of Finance should take the opportunity to save some money so that whenever state revenue is insufficient, it can use it to do things as it plans. In this way, the central government can make its national budget plan in a more scientific way. The fund can also guarantee that the central government’s budget remain at a balanced level and China’s fiscal policies be implemented continuously, said an official at MOF.

 

Based on this year’s budget plan, China’s fiscal revenue should increase by 15% from last year to exceed the 42-billion-yuan target set by tax and customs bureaus. If China’s actual fiscal revenue falls short of the budget plan, the central government will start to use the adjustment fund to balance the budget.

 

Chinese fiscal revenue has kept increasing over the past few years. Since 2003, the state fiscal revenue has increased by 500 billion yuan year on year. Last year, the state fiscal revenue increased by well over 700 billion yuan.