参考答案： We will pursue a more proactive and effective fiscal policy. This year’s deficit-to-GDP ratio is projected to be 3 percent, with the fiscal deficit set at 2.38 trillion yuan, representing a year-on-year increase of 200 billion yuan. To break this down, the projected deficit of the central government is 1.55 trillion yuan, and the projected deficit of local governments is 830 billion yuan. Local government special bonds to be issued will total 800 billion yuan, and local government bonds will continue to be issued to replace their outstanding debt. The main reason for keeping this year’s deficit-to-GDP ratio unchanged is to allow for further reductions in taxes and fees. Over the course of the year, the tax burden on businesses will be further eased by around 350 billion yuan, and business related fees will be further cut by around 200 billion yuan to benefit market entities.
Government budgets should highlight priorities; spending in some areas should be maintained while in others cuts should be made; and more should be spent to strengthen areas of weakness and improve living standards. General transfer payments to local governments will be increased by 9.5 percent, with the focus on increasing transfer payments for equalizing access to basic public services and stepping up subsidies for regions facing economic difficulties. We will scale down non-priority spending and cut budgets for projects that do not deliver desired outcomes.
Governments at all levels should tighten their belts, and central government departments should take the lead by cutting no less than 5 percent of their general expenditures. No increase in spending on official overseas visits, official vehicles, or official hospitality is permitted; and we will squeeze out more funds to cover cuts in taxes and fees. We will keep government spending low and enrich our people.