2. Budgetary revenue and expenditure of government-managed funds in 2018
In accordance with the relevant regulations for management of local government debt, revenue and expenditure generated from local government special debt are included in the budgets of government-managed funds.
Revenue of China's government-managed funds in 2018 reached 7.54045 trillion yuan, a rise of 22.6%. Adding 38.559 billion yuan carried over from 2017 and 1.35 trillion yuan raised through local government issuance of special purpose bonds, the total revenue amounted to 8.929009 trillion yuan. Expenditure of government-managed funds totaled 8.056207 trillion yuan, an increase of 32.1%.
Revenue of central government-managed funds reached 403.265 billion yuan, representing 104.4% of the budgeted figure and an increase of 4.2%. With the additional 38.559 billion yuan carried forward from 2017, the total revenue rose to 441.824 billion yuan. Expenditure of central government-managed funds totaled 402.155 billion yuan, representing 94.7% of the budgeted figure and an 8.4% increase. Broken down, this figure included 308.929 billion yuan of central government spending and 93.226 billion yuan of transfer payments to local governments. Funds transferred from central government-managed funds to the general public budget amounted to 146 million yuan. Revenue of central government-managed funds exceeded expenditure by 39.523 billion yuan. Of this figure, 35.824 billion yuan was carried forward to 2019, and 3.699 billion yuan, comprised of any portion of carryover funds from individual government-managed funds exceeding 30% of that fund's revenue in 2018, was contributed to the Central Budget Stabilization Fund in accordance with regulations.
Revenue of local government-managed funds reached 7.137185 trillion yuan, an increase of 23.8%. Revenue from the sale of state-owned land-use rights accounted for 6.509585 trillion yuan of this figure, a 25% rise. Adding in the transfer payments of 93.226 billion yuan from central government-managed funds and 1.35 trillion yuan raised through local government issuance of special purpose bonds, the total revenue rose to 8.580411 trillion yuan. Expenditure of local government-managed funds totaled 7.747278 trillion yuan, a rise of 32.9%; of this spending 6.994104 trillion yuan was funded by revenue from the sale of state-owned land-use rights, an increase of 34.2%.
3. Budgetary revenue and expenditure of state capital operations in 2018
In accordance with relevant management regulations for the budgets of state capital operations, budgetary revenue from state capital operations is mostly collected as a certain proportion of the net profits of state-owned enterprises (SOEs) from the previous year, while expenditure is planned according to the principle of balance between expenditure and revenue. In 2017, Chinese SOEs and enterprises with state-held controlling stakes (not including class one state-owned financial enterprises) had a total business revenue of 53.75 trillion yuan, and their net profits reached 2.35 trillion yuan, of which 1.42 trillion yuan belonged to the owners of their parent companies; by the end of that year, their asset value totaled 183.52 trillion yuan and their total debt reached 118.46 trillion yuan.
Budgetary revenue of state capital operations nationwide totaled 289.995 billion yuan in 2018, an increase of 9.8%, while expenditure totaled 215.926 billion yuan, an increase of 6.7%.
Budgetary revenue of central state capital operations was 132.531 billion yuan, representing 96.3% of the budgeted figure and an increase of 1.6%. With the added 11.359 billion yuan carried over from 2017, the total revenue was 143.89 billion yuan. Budgetary expenditure of central state capital operations reached 111.173 billion yuan, representing 95.1% of the budgeted figure and an increase of 10.1%. This expenditure included 102.485 billion yuan of central government spending and 8.688 billion yuan in transfer payments to local governments. A total of 32.154 billion yuan was transferred into the central general public budget, with the transfer proportion being raised to 25%; 563 million yuan of budgetary revenue from these operations has been carried over to 2019.
Budgetary revenue of local state capital operations reached 157.464 billion yuan, a rise of 17.8%. Adding in the transfer payments of 8.688 billion yuan to local governments from the central state capital operations budget, the total revenue was 166.152 billion yuan. Budgetary expenditure of local state capital operations amounted to 113.441 billion yuan, a drop of 9.2%. This drop was mainly due to the proportion of funds allocated from the local state capital operations budget to the local general public budget being increased to 43.245 billion yuan.
4. Budgetary revenue and expenditure of social security funds in 2018
To coordinate the burden of enterprise employees' basic aged-care pension among different regions and ensure sustainable development of the basic aged-care insurance system, in 2018 we put in place a central regulation system for enterprise employees' basic aged-care pension funds to be used inter-provincially. Through central regulation, we can proportionately allocate the surplus funds of provinces with a good balance of payments to those provinces with shortfalls, ensuring that pension benefits are paid across all regions on time and in full.
Revenue of social security funds nationwide reached 7.264922 trillion yuan, an increase of 24.3%; the increase would be 7.3% after deducting the basic aged-care pension funds for employees of Party and government offices and public institutions. This revenue included 5.25432 trillion yuan in insurance premiums and 1.677683 trillion yuan in government subsidies. Expenditure of social security funds nationwide totaled 6.458645 trillion yuan, representing an increase of 32.7%; the increase would be 12.7% after deducting the basic aged-care pension funds for employees of Party and government offices and public institutions. The social security fund surplus for 2018 was 806.277 billion yuan, which was rolled over to make the year-end balance 8.633713 trillion yuan.
Revenue of central government social security funds reached 58.211 billion yuan, which included 30.184 billion yuan in insurance premiums and 27.47 billion yuan in government subsidies. With the addition of 241.33 billion yuan contributed by local governments to come under central regulation, the total revenue rose to 299.541 billion yuan. Expenditure of central government social security funds reached 53.213 billion yuan. Adding in 240.68 billion yuan reallocated to local governments through central regulation, the total expenditure rose to 293.893 billion yuan. The surplus for 2018 was 5.648 billion yuan, which was rolled over to make the year-end balance 31.549 billion yuan.
Revenue of local government social security funds reached 7.206711 trillion yuan, which included 5.224136 trillion yuan in insurance premiums and 1.650213 trillion yuan in government subsidies. Adding in 240.68 billion yuan of local government funds reallocated by the central government, the total revenue rose to 7.447391 trillion yuan. Expenditure of local government social security funds was 6.405432 trillion yuan. After adding 241.33 billion yuan of local government funds reallocated by the central government, the total rose to 6.646762 trillion yuan. The local government social security fund surplus for 2018 was 800.629 billion yuan, which was rolled over to result in a year-end balance of 8.602164 trillion yuan.
At the end of 2018, outstanding central government debt stood at 14.960742 trillion yuan, well within the budgeted limit of 15.690835 trillion yuan approved by the NPC. Total outstanding local government debt was 18.386152 trillion yuan, which included 10.993875 trillion yuan of general debt and 7.392277 trillion yuan of special debt, and fell within the NPC-approved budget limit of 20.99743 trillion yuan.
During the course of implementing the budgets, in accordance with the unified arrangement for deepening reform of Party and state institutions, we promptly allocated the necessary funds for newly set up departments and made appropriate budget transfers between relevant departments. These efforts ensured that those departments were able to operate normally in the performance of their duties, and that the reforms could progress smoothly. We examined and approved all the budgets of central government departments within the statutory time frame.
For a more detailed account of the budget execution in regard to the above items, please refer to the Chinese language version of the Report on the Execution of the 2018 Budgets of the People's Republic of China and the 2019 Draft Budgets.