Xie tries to allay wrong idea over fiscal revenue
Source: Xinhua |
March 7, 2012, Wednesday
|
Print Edition
Print Edition
CHINESE Minister of Finance Xie Xuren yesterday tried to clear up some public misunderstandings about the country's rapidly expanding fiscal revenue, saying price factors have contributed to these misunderstandings.
Xie's remarks came in an attempt to soothe public discontent over much faster fiscal revenue growth possibly cutting into the people's ability to benefit from the country's rapid economic expansion.
"Fiscal revenue has kept growing rapidly over the past few years," Xie said at a press conference. "It was the combined result of a sound and rapidly expanding economy and increasing corporate profits and income."
China's fiscal revenue grew 24.8 percent to hit a record-high 10.37 trillion yuan (US$1.64 trillion) in 2011, compared with 9.2 percent growth in its gross domestic product. The fiscal revenue collected in 2011 also exceeded the government's target of 9.12 trillion yuan for which it had budgeted last year, raising public concerns that the Chinese people may bearing a tax burden that is too heavy.
Xie attributed the rapid increase in fiscal revenue to the government's moves to bring all extra-budgetary funds under budgetary management, which added about 250 billion yuan to the country's fiscal revenue.
According to him, China's fiscal revenue - tax income, in particular - is calculated according to nominal prices, while the GDP calculation is based on prices adjusted for inflation.
"If calculated according to nominal prices, China's GDP in 2011 would have increased by 17.4 percent year on year," Xie said. "That would make the fiscal revenue growth very close to the GDP level."
He said: "An increase in fiscal revenue is helpful for improving people's livelihood, facilitating economic restructuring and promoting the country's development in all fields."
China will cut income taxes on companies and import duties on energy and raw materials to spur domestic consumption and reduce reliance on exports and investment, and will spend more on education, health and other services to ease burdens on households, Xie said.
Xie's remarks came in an attempt to soothe public discontent over much faster fiscal revenue growth possibly cutting into the people's ability to benefit from the country's rapid economic expansion.
"Fiscal revenue has kept growing rapidly over the past few years," Xie said at a press conference. "It was the combined result of a sound and rapidly expanding economy and increasing corporate profits and income."
China's fiscal revenue grew 24.8 percent to hit a record-high 10.37 trillion yuan (US$1.64 trillion) in 2011, compared with 9.2 percent growth in its gross domestic product. The fiscal revenue collected in 2011 also exceeded the government's target of 9.12 trillion yuan for which it had budgeted last year, raising public concerns that the Chinese people may bearing a tax burden that is too heavy.
Xie attributed the rapid increase in fiscal revenue to the government's moves to bring all extra-budgetary funds under budgetary management, which added about 250 billion yuan to the country's fiscal revenue.
According to him, China's fiscal revenue - tax income, in particular - is calculated according to nominal prices, while the GDP calculation is based on prices adjusted for inflation.
"If calculated according to nominal prices, China's GDP in 2011 would have increased by 17.4 percent year on year," Xie said. "That would make the fiscal revenue growth very close to the GDP level."
He said: "An increase in fiscal revenue is helpful for improving people's livelihood, facilitating economic restructuring and promoting the country's development in all fields."
China will cut income taxes on companies and import duties on energy and raw materials to spur domestic consumption and reduce reliance on exports and investment, and will spend more on education, health and other services to ease burdens on households, Xie said.
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