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Fiscal
Solvency
Over the past 21 years
of reform and opening to the outside world, with the rapid development
of the national economy and the deepening of the reform in finance
and taxation, the goal of fiscal solvency has been becoming nearer.
In 1978, the state financial revenue was 113.2 billion yuan, while
it reached 1,137.7 billion yuan in 1999. Especially in 1999, the Chinese
government continued to implement an active financial policy, expanding
the domestic market by various means, including increasing state debt
investment, which played a key role in stimulating the economy.
Taxation is a major source of
the state financial revenue. In 1978, all kinds of taxation brought
in a total of 51.93 billion yuan; in 1999, the figure was 1,031.1
billion yuan. The accumulated taxation income was 7,435.2 billion
yuan from 1979 to 1999. Since the reform, the distribution relationship
between the central and local finances has been gradually smoothed,
a system of tax distribution under which central finances are growing
in a stable manner has been established, micro-control over central
finances has been improved, and a basis for standard transfer payments
has been set up. Among the state financial revenue, central finances
accounted for 17.58 billion yuan in 1978¡ª15.5 percent of the total;
in 1999, the figure was 579.8 billion yuan¡ª51.0 percent of the total.
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