GOVERNMENT FINANCE

# Explanatory Notes on Main Statistical Indicators

Government Revenue refers to income for the government finance through participating in the distribution of social products. It is the financial guarantee to ensure government functioning. The contents of government revenue include the following main items:

(1) Various tax revenues, including domestic value added tax (VAT), domestic consumption tax, VAT and consumption tax from imports, VAT and consumption tax rebate for exports, business tax, corporate income tax, individual income tax, resource tax, city maintenance and construct tax, house property tax, stamp tax, urban land use tax, land appreciation tax, tax on vehicles and boat operation, ship tonnage tax, vehicle purchase tax, tariffs, farm land occupation tax, deed tax, and tobacco leaf tax, etc.

(2) Non-tax revenue, including special program receipts, charge of administrative and institutional units, penalty receipts and others non-tax receipts.

Government Expenditure refers to the distribution and use of the funds which the government finance has raised, so as to meet the needs of economic construction and various undertakings. It includes the following main items: expenditure for general public services, expenditure for foreign affairs, expenditure for national defence expenditure for public security, expenditure for education, expenditure for science and technology, expenditure for culture, sport and media, expenditure for social safety net and employment effort, expenditure for medical and health care, expenditure for environment protection, expenditure for urban and rural community affairs, expenditure for agriculture, forestry and water conservancy, expenditure for transportation, expenditure for affairs of exploration, power and information, expenditure for affairs of commerce and services, expenditure for affairs of financial supervision, expenditure for affairs of land and weather, expenditure for affairs of housing security, expenditure for affairs of management of grain & oil reserves , interest payment for domestic and foreign debts.. Government expenditure is divided into central government expenditure and local government expenditure according to the different functions of the governments played in economic and social activities,

Revenue of the Central Government and Revenue of the Local Governments refers to the revenue collected by the Central Government and that by the local governments as defined by the decentralized taxation system. In accordance with this system, the revenue of the Central Government includes tariff, VAT and consumption tax from imports, VAT and consumption tax rebate for exports, consumption tax, business tax and city maintenance and construct tax from the Ministry of Railways, head offices of banks, head offices of insurance company, which are handed over to the government in a centralized way, 75% of the value added tax, 60% the share part of the corporate income tax, unshared part of corporate income tax of the central enterprises, profit handed in by the central enterprises, 60% of individual income tax, vehicle purchase tax, ship tonnage tax, 97% of stamp tax on securities transactions, resource tax on the offshore petroleum resources. The revenue of the local governments includes business tax (excluding the part of the Ministry of Railways, head offices of banks, head offices of insurance company, which are handed over to the government in a centralized way), profit handed in by the local enterprises, city maintenance and construct tax (excluding the part of the Ministry of Railways, head offices of banks, head offices of insurance company, which are handed over to the government in a centralized way), house property tax, urban land use tax, land appreciation tax, tax on vehicles and boat operation, farm land occupation tax, deed tax, and tobacco leaf tax, stamp tax, 25% of the value added tax, 40% the share part of the corporate income tax, 40% of individual income tax, 3% of stamp tax on securities transactions, resource tax other than the tax on offshore petroleum resources, local non-tax revenue, etc.

Expenditure of the Central Government and Expenditure of the Local Governments according to the different functions of the Central Government and local governments in economic and social activities, the rights of affairs administration are demarcated between those of the Central Government and those of local governments; and the classification of the expenditure between the Central Government and local governments are made on the basis of the classification of the rights of affairs administration between them. The expenditure of the Central Government includes the expenditure for general public services, expenditure for foreign affairs, expenditure for public security, and the expenditure of the Central Government for adjusting the national economic structure; coordinating the development among different regions; and exercising macroeconomic regulation. The expenditure of the local governments includes mainly the expenditure for general public services, expenditure for public security, and expenditures for social development which are planed by local governments, etc.

Retail Price Index reflect the trend and degree of change in retail prices of commodities during a given period. The change in retail prices of commodities is related to government revenue, the equilibrium of market supply and demand, and the ratio of consumption to accumulation. Therefore, the retail price indices are useful from an oblique perspective for observing and analyzing the changes of the above economic activities.

Price Indices for Means of Agricultural Production reflect the trend and degree of changes in the prices of the means of agricultural production during a given period. Compilation of these indices helps to understand the changes in prices of input into agricultural production and facilitate the compilation of national accounts statistics. Before 1994, price indices for means of agricultural production were a sub-category in the retail price indices for commodities, and it has been compiled separately since 1994.

Consumer Price Index reflects the trend and degree of changes in prices of consumer goods and services purchased by urban and rural residents, and is a composite indices derived from the urban consumer price indices and the rural consumer price indices. Consumer price indices can be used to analyze the impact of consumer price change on actual expenditure for living cost of urban and rural residents.

Urban Consumer Price Index reflect the trend and degree of changes in prices of consumer goods and services purchased by urban households during a given period. It can be used to observe and analyze the impact of price changes in consumer goods and services on urban household income and consumption expenditure.

Rural Consumer Price Index reflect the trend and degree of changes in prices of consumer goods and services purchased by rural households during a given period. It can be used to observe the impact of change in retail prices of consumer goods and service prices on rural household income and consumption expenditure on living.

Ex-factory Price Index of Industrial Producers reflects the trend and degree of changes in general ex-factory prices of all industrial products during a given period, including sales of industrial products by an industrial enterprise to all units outside the enterprise, as well as sales of consumer goods to residents. It can be used to analyze the impact of ex-factory prices on gross output value and value-added of the industrial sector.