Guangzhou will allocate special fund from municipal budgeting for the construction of international business and trade center. On the afternoon of March 13, the 6^th Executive Meeting of the 15^th People’s Government of Guangzhou reviewed and adopted the 13^th Five-Year Plan of Guangzhou for Fiscal Reform and Development (hereinafter referred to as the Plan), informing that the RMB4 billion is expected to be allocated from the municipal budgeting as special fund for the construction of international business and trade center to support business and trade enterprises to seek a better development and attract headquarters enterprises to Guangzhou.

 

Over RMB11 billion to be allocated for science and technology development

 

As one of the major special plans under the “13^th Five-Year Plan” of Guangzhou, the Plan was drafted by the Bureau of Finance of Guangzhou Municipality. Centering on the major decisions and deployment of the CPC Guangzhou Committee and the People’s Government of Guangzhou as well as the focuses of the new round of fiscal system reform, the Plan sets the goals and tasks for the fiscal reform and development of Guangzhou during the 13^th Five-Year Plan period based on the outline of the municipal plan, the major special plans of the city and the plans of superior authorities.

 

The Plan indicates that, during the 13^th Five-Year Plan period, Guangzhou aims to realize an annual comparable increase of general public budget revenue of 6% to increase general public budget revenue from Guangzhou to about RMB670 billion in 2020, totaling it to about RMB3,000 billion on basis of five-year accumulation, about RMB730 billion more than that during the 12^th Five-Year Plan period (excluding state-owned capital management budget revenue, the same as below), and realize local general public budget revenue of about RMB180 billion, totaling it to about RMB800 billion on basis of five-year accumulation, about RMB230 billion more than that during the 12^th Five-Year Plan period.

 

During the 13^th Five-Year Plan period, the general public budget expenditure of Guangzhou is expected to have an average annual increase of 5.3% taking into account the general public budget revenue of Guangzhou, the tax return from the central and provincial government and the settlement under the fiscal system to reach more than RMB210 billion in 2020, totaling it more than RMB950 billion on basis of five-year accumulation, over RMB250 billion more than that during the 12^th Five-Year Plan period (excluding state-owned capital management budget expenditure).

 

The Plan proposes to make great efforts to cultivate excellent financial resources, give full play to the precise regulation and well-timed regulation of fiscal policies, solidly promote the supply side structural reform and actively support the construction of the “three major strategic hubs” and the “three centers and one system”. During the 13^th Five-Year Plan period, RMB73.6 billion out of the municipal budgeting will be arranged for the construction of subways, while RMB24.3 billion will be invested in the construction of intercity rails and RMB4 billion will be allocated for the construction of international business and trade center to support business and trade enterprises to seek a better development and attract headquarters enterprises to Guangzhou.

 

Moreover, with emphasis laid on guaranteeing the implementation of the innovation-driven development strategy and promote the construction of national innovation city, RMB11 billion will be allocated in 2018 for science and technology development. Investment in subsidies for talents will be enhanced. It is predicted that, during the 13^th Five-Year Plan period, RMB3.5 billion will be allocated for subsidies and rewards for concentration of industrial leading talents and funds for related supporting services.

 

To rise proportion of investment in people’s livelihood in budget expenditure to more than 76% in 2020

 

Guangzhou will also work hard to guarantee people’s livelihood, continuing to give priority to people’s livelihood when making budget and make great efforts to guarantee expenditures for education, employment, social security, medical and health services, culture, transportation and indemnificatory housing. Integrated development of urban and rural areas will be promoted. As predicted, during the 13^th Five-Year Plan period, the general public budget expenditure of Guangzhou for improvement of people’s livelihood will reach RMB768.5 billion, with average annual increase of 5.3%, and the proportion of investment in people’s livelihood in general public budget expenditure of Guangzhou will rise to more than 76% in 2020.

 

The Plan also proposes to accelerate the fiscal system reform and promote the reform for division of fiscal management powers and expenditure responsibilities to gradually establish municipal and district-level fiscal management systems corresponding to the powers and responsibilities. It also proposes to make medium-term fiscal plans, establish a balancing mechanism for budget to be carried over to the next year, deepen reform of government procurement, government purchase of services and non-tax revenue management, make innovation of fiscal investment modes, promote reform of capital and equity investment through fiscal operation, enhance fiscal risk control and integrate the government debt management and risk pre-warning mechanisms, aiming to speed up the improvement of the fiscal support system meeting the norms on a national major central city.

 

In addition, Guangzhou will also enhance fiscal management. It will center on the goals to “improve fiscal operation efficiency, fiscal fund utilizing efficiency and fiscal management” to integrate the concept of delicacy management into the whole process of fiscal management. The budget performance management system will be further improved to expand the performance management coverage to budget units at different level and all fiscal funds. Moreover, the fiscal fund management will be standardized to gradually realize “one department in charge of one special fund”. The fiscal investment review and management system will be improved, and budget project review of a department will be made a part of the budget management process of the department. All these measures aim to establish a fiscal management system featuring standard management and highly efficient operation.

 

Source: Translated from Invest Guangzhou, March 14, 2017