Interpreting the New Budget

First, the general public budget revenue growth is slowing down

2015, the national income of the general public budget 15.221665 trillion yuan, an increase of 5.8% over the same caliber in 2014, down 2.8 percentage points over the previous year. 5.8% revenue growth since 1988 the lowest growth rate of fiscal revenue, also lower than the beginning of the budget arrangements. Expected early next year mainly due to revenue growth is lower than the economic impact of downward pressure, in 2015 the national fixed asset investment, retail sales, foreign trade and other major economic indicators of growth were lower than expected early next year.

...Second, the state-owned land use right transfer income continued to decline, local government fund revenue greater impact

As the bulk of state-owned land use right transfer income growth in local government fund revenue related to the local government's financial resources. By 2015, the local government fund level income of 3.821812 trillion yuan, compared with last year dropped 17.7 percent, also lower than the budgeted number (4.450951 trillion yuan), mainly state-owned land use right transfer income of only 3.2547 trillion yuan, an decrease 884 billion yuan, down 21.4%

By 2016, state-owned land use right transfer income 2.82486 trillion yuan, and down 13.2% compared 2015, it has declined for two consecutive years. Two years ago, in 2014, state-owned land use right transfer income of up to 4.038586 trillion yuan.

As a benchmark the proactive fiscal policy, the central infrastructure investment gentle and orderly, slightly expanded than in previous years, but there has been no large-scale jumped, reflecting the central government does not pay attention to the macro-control has come from fixed asset investment and stimulate economic growth.

Table 3 Central govt infrastructure investment ($ billion)

Year 2013... 2014... 2015... 2016

Investment 4376....4576....4776...5,000

Social security budget is looking like a developed nation:

Social Insurance Fund budget situation is not optimistic about the long-term

According to the Ministry of Finance announced in 2015 the Social Insurance Fund budget, in 2015 China's social insurance fund includes seven funds: enterprise employees' basic pension insurance fund, urban and rural residents in the basic old-age insurance fund, basic medical insurance fund, basic medical insurance fund, work injury insurance fund, unemployment insurance fund and maternity insurance fund.

...In 2013, the National Social Security Fund's total income 3.5994 trillion yuan, an increase of 15 percent over the previous year; total expenditure of 2.8744 trillion yuan, an increase of 20 percent over the previous year.

In 2014, the National Social Security Fund's total income 4.0439 trillion yuan, an increase of 12.4 percent over the previous year; total expenditure of 3.3681 trillion yuan, up 17.2 percent over the previous year.

In 2015, the National Social Security Fund's total income of 4.466034 trillion yuan, an increase of 10.4 percent over the previous year; total expenditure 3.935668 trillion yuan, an increase of 16.9 percent over the previous year.

In 2016, the National Social Security Fund's total income of 4.714419 trillion yuan, an increase of 5.6 percent over the previous year; total expenditure 4.354653 trillion yuan, an increase of 10.6 percent over the previous year.

(2) increase in the rigidity of financial subsidies.

Financial subsidies to the social insurance fund rapid growth, need to be vigilant. State financial subsidies to the social insurance funds increased from 627.176 billion yuan in 2012 to 2013 of 737.15 billion yuan, 844.635 billion yuan in 2014, the number of 2015 budgetary arrangements for the 974.175 billion yuan, but the actual number was 1.019815 trillion yuan 2016 will reach 1.084804 trillion yuan.

EO: 2016年全国财政预算报告解读