revenue in the 2020 general public budget is expected to reach 18.289.5 trillion yuan in 2020, down 3.9 percent year on year and better than expected, according to an online press conference held by the ministry of finance on jan. 28. expenditure in the general public budget nationwide is 2.4588 trillion yuan, up 2.8% year on year. while resolutely implementing the government's requirement to tighten its belt, we ensured spending in key areas such as epidemic prevention and control, poverty alleviation, and community-level "security, rural, and rural" programs, and ensured that central and local budgets were well implemented.
there were many highlights in the operation of government revenues and expenditures
in 2020, financial departments at all levels will resolutely implement a proactive fiscal policy. we need to be more proactive in implementing such policies as tax cuts, fee cuts and direct government funds to help enterprises. these policies will be effective, and the economy will continue to recover steadily and government revenue will improve quarter by quarter. the operation of fiscal revenue and expenditure for the whole year showed four main features.
first, the economy continued to recover steadily, with government revenue rising quarter by quarter. from the first quarter to the fourth quarter of 2020, china's general public budget revenue will increase by -14.3 percent, -7.4 percent, 4.7 percent and 5.5 percent, respectively, showing a trend of bottoming out in the second quarter after a sharp decline in the first quarter, turning from negative to positive in the third quarter, and continuing to improve in the fourth quarter. in particular, during the outbreak of the epidemic, national government revenue in february and march fell by 21.4 percent and 26.1 percent, respectively. the gap between government revenue and expenditures was acute. major strategic achievements have been made in the prevention and control of the epidemic. the economy has steadily recovered month by month, driving the growth of national government revenue in the months since june to a continuous positive increase.
from january to december, revenue in the central government's general public budget totaled 8.277.1 trillion yuan, down 7.3% year on year. revenue in local governments' general public budgets is expected to reach 10.0124 trillion yuan, down 0.9% year on year.
second, major economic indicators stabilized and improved, leading to a rebound in the growth of major taxes. in 2020, national tax revenue will reach 15.441 trillion yuan, down 2.3 percent, with the decline gradually narrowing. this is mainly due to the sustained and steady recovery of the economy and the gradual recovery of major economic indicators such as industrial added value, corporate profits and imports and exports. among them, the domestic value-added tax decreased by 8.9%, narrowing the cumulative decline for eight consecutive months, and increased by 9.1%, 8.1% and 7.7% respectively in october, november and december, basically returning to normal. value-added tax and excise tax on imported goods were reduced by 8.1%, with the reduction gradually narrowing as the growth rate of general trade imports recovered. corporate income tax fell by 2.4 percent, mainly due to the recovery in corporate profits in the second half of the year, which led to a narrowing of the cumulative decline in revenue. the personal income tax increased by 11.4%, mainly due to the increase in personal income as the economy recovered and the increase in property income such as equity transfer. the increase in land value-added tax and deed tax was 0.1 percent and 13.7 percent respectively, mainly due to the increase in land sales and real estate sales. a total of 1.454.9 trillion yuan of export tax rebates were issued, strongly promoting the steady growth of foreign trade exports.
third, putting state-owned resources and assets to good use through multiple channels boosted local non-tax revenue, and fees related to enterprises continued to drop. in 2020, national non-tax revenue will reach 2.858.5 trillion yuan, down 11.7 percent. of this, non-tax revenue of the central government fell by 62.3 percent, mainly due to an increase in the profits handed over to certain state-owned financial institutions and soes in 2019, which was based on a relatively high base. non-tax revenue of local governments increased by 5.6%, mainly because governments at all levels actively tapped their potential and put state resources and assets to good use through multiple channels to increase revenue. of this, revenue from the paid use of local state resources (assets) increased by 17.8%, driving up non-tax revenue by 5.4 percentage points. at the same time, we will strictly prohibit the use of organizational taxes and fees as an excuse to weaken the effect of tax cuts and fees, and resolutely prevent the illegal collection of taxes and fees, in the name of settlement and supplementary payment, from increasing the burden on enterprises. in 2020, the burden on enterprises will continue to be reduced, and fees related to them will continue to drop. revenue from administrative fees will fall by 1.4 percent nationwide, and revenue from special items such as education surcharges will fall by 0.3 percent.
fourth, general expenditures were reduced, and expenditures in key areas were effectively guaranteed. in 2020, expenditure in the central government's general public budget will reach 3,509.6 trillion yuan, down 0.1% year on year. expenditure in local governments' general public budgets is projected to be 21,0492 trillion yuan, up 3.3% year on year. governments at all levels tightened their belts, and spending on general public services and urban and rural communities fell by 1.1 percent and 20 percent, respectively. at the same time, expenditures in key areas such as epidemic prevention and control, poverty alleviation, and community-level "three guarantees" have been effectively guaranteed. spending on health care increased by 15.2 percent nationwide, with public health spending directly related to epidemic prevention and control rising by 74.9 percent. expenditures on agriculture, forestry and water conservancy will increase by 4.4%, with poverty alleviation spending increasing by 1.5% on top of the 14.3% increase in 2019. spending on social security and employment increased by 10.9%; spending on housing security increased by 10.5%; spending on education increased by 4.4%; spending on transportation increased by 3.2%.
we increased and reduced burdens on enterprises by over 2.5 trillion yuan
in 2020, in the face of the sudden outbreak of covid - 19, the ministry of finance jointly with the departments concerned to intensify tax cuts jiangfei, introduced the implementation of the 7 batches of 28 targeted tax cuts jiangfei measures, these measures have emergency support, epidemic prevention and control for bao also have greatly influenced by the outbreak industry assistance, and support enterprises to return to work and production, especially for small companies, further intensify the support of aid, expected the new during the more than $2.5 trillion for the enterprise.
-- focusing on supporting the development of small and micro businesses. in addition to exempting nearly 90 percent of the more than 50 million small-scale taxpayers nationwide, the rate levied on the remaining 6 million households will be reduced from 3 percent to 1 percent. in the first 11 months of 2020, a total of 91.1 billion yuan will be reduced or exempted from vat. nearly 90% of the total reduction of pension, work-related injury and unemployment insurance premiums for small, medium and micro enterprises and individual industrial and commercial households was temporarily reduced or reduced. we will help small and micro businesses, as well as individual businesses, tide over difficulties through a series of measures, such as exempting them from slowing down. in 2020, the sales revenue of the private economy will increase by 8% year-on-year, 2 percentage points higher than the overall level of the country's enterprises.
-- effectively ensuring the production and supply of materials for epidemic prevention and control. from january to november 2020, a total of 65.2 billion yuan of taxes and fees were reduced or exempted for enterprises producing materials for key epidemic prevention and control measures. among them, the epidemic prevention and control focus to ensure that material production enterprises enjoy the vat tax rebate policy, a total of 18.3 billion yuan; enterprises producing key epidemic prevention materials received a one-time tax deduction before tax for new equipment purchases, amounting to 8.4 billion yuan. the measures to cut taxes and fees have effectively increased corporate cash flow, reduced the use of capital, supported enterprises to expand production, and greatly improved their ability to provide supplies for epidemic prevention and control.
-- helping enterprises in difficult industries resume work and production. among the industries affected by the epidemic, transportation, accommodation, and service industries have benefited the most from tax cuts. from january to november 2020, taxpayers were exempted from vat, saving 38.2 billion yuan in total. taxpayers severely affected by the epidemic were exempted from property tax and urban land use tax, totaling 29.2 billion yuan. various tax cuts and exemptions have strongly supported the return of various market entities to work, production, business and markets, and the industries affected by the epidemic are gradually resuming growth.
-- we gave strong support to maintaining stable employment and ensuring people's wellbeing. the targeted tax and fee reduction policies to be implemented in 2020, combined with the preferential tax reduction measures for small and micro businesses introduced in recent years, have actually reduced the employment costs of enterprises and strongly supported the stable employment and survival and development of enterprises. by the end of 2020, the tax burden ratio (the proportion of taxes and social insurance expenses paid by enterprises in sales revenue) on sales revenue of 100,000 enterprises from key tax sources nationwide is expected to have dropped by 8% year-on-year. a total of 11.44 million new tax-related market entities were registered nationwide, up 10.1% year on year and higher than the level of the previous two years. the number of market entities grew rapidly, providing strong support for ensuring private employment.
going forward, the ministry of finance will further improve the tax and fee reduction policies, improve their precision and effectiveness, and continue to give full play to the effects of tax and fee reduction policies.
first, we will resolutely implement the policy of fully reducing taxes and fees. we will work hard to improve the mechanism for implementing tax and fee cuts, strengthen coordination between government departments, promote information sharing on tax and fee cuts, closely follow changes in the tax burden of various industries, track and monitor their effects, analyze and determine their results, and promptly study and solve prominent problems reported by enterprises. further increase the publicity and policy interpretation efforts, improve the taxpayers and payers policy awareness, help enterprises to make full use of the policy. we will continue to improve tax services, streamline tax procedures, improve specific service measures, and unimpeded tax cuts and fees in the last mile.
second, we will continue to cut taxes and fees. we will maintain the continuity and stability of our policies, and continue to deepen vat reform, special additional deductions for personal income tax and other institutional policies to reduce taxes and fees. we will continue to implement preferential tax cuts and exemptions for small and micro businesses. we will maintain necessary support for economic recovery and encourage enterprises to resume work and production and the economy to operate smoothly.
third, we will resolutely prevent any weakening of the benefits of policies to cut taxes and fees. we will strengthen guidance and supervision over local work, strictly organize the discipline of revenue work, collect taxes and fees in strict accordance with regulations and policies, intensify efforts to crack down on all kinds of charges levied on enterprises that violate regulations, and investigate and punish problems such as non-implementation of policies, increasing burdens on enterprises, and harming the interests of the people, so as to ensure that all measures are fully implemented.
we will take multiple measures to ensure stability, stability and security
in 2020, resolutely implement the fiscal department of the cpc central committee and the state council decision deployment, adhere to a proactive fiscal policy more positive and promising integrated a series of measures are taken, explore the potential for increasing earnings and practicing economy, maintain a balanced budget and financial stability, support to do a good job of "six steady" "six protect", play a key role in financial stability and economic.
first, raise funds through multiple channels. we took special measures during the special period, raised the deficit to gdp ratio from 2.8% to over 3.6%, and increased the government deficit by 1 trillion yuan. local governments will issue 3.75 trillion yuan in new special bonds, 1.6 trillion yuan more than last year. one trillion yuan of special anti-epidemic treasury bonds will be issued. at the same time, we will make greater use of carryover and balance funds of all types, work through multiple channels to increase available financial resources, and make up for the shortfall in the decrease in government revenue and increase in government expenditures.
second, we will establish and implement a mechanism for direct financing. according to "central cut into parts, ground up refinement at the provincial level, for the record, agree, fast, direct" principle, the new fiscal deficits and disease resistant special treasury bonds, 2 trillion yuan to all places, establish special transfer payment mechanism, funds to the cities and counties at the grass-roots level, direct enterprise polity, precise push money into the terminal to support at the grass-roots level to carry out the "six protect" task.
third, we insisted that the government tighten its belt. central government departments took the lead in making prudent calculations and practicing frugality. expenditments at this level increased negatively, with non-urgent and non-rigid expenditures cut by more than 50 percent. we will urge local governments to make great efforts to cut regular expenditures, strengthen management of spending on official overseas visits, official vehicles, and official hospitality, strictly observe all standards for spending, strictly prohibit extravagance, waste, and extravagance, and practice strict economy in all undertakings.
fourth, we will vigorously improve the structure of expenditures. we will strictly tighten budgetary spending thresholds to ensure the effective implementation of all decisions and plans made by the cpc central committee and the state council, and focus our support on epidemic prevention and control, poverty alleviation, and community-level protection of health care, rural areas, and rural areas. at the same time, we will strengthen the application of performance results, resolutely cut down inefficient and ineffective funds, and put the limited funds to good use.
fifth, we will increase financial support to local governments. central government transfer payments to local governments totaled 8.39 trillion yuan, an increase of 12.8%, the highest increase in recent years. the central government will give priority to old revolutionary base areas, ethnic minority areas, border areas, poverty-stricken areas, and areas severely affected by the epidemic. we will increase the financial resources of local governments, especially those in straits, and help them meet the bottom line of ensuring, protecting, and protecting the health of local governments.
about 80% of the special debt was invested in services for people's livelihood
in 2020, the national people's congress approved an additional 3.75 trillion yuan of special bond quotas, which have been allocated by the central government to all provinces (autonomous regions and municipalities directly under the central government) in batches with the approval of the state council. in addition to supporting small and medium-sized banks to reduce risks, local government bonds are used for transportation, municipal and industrial park infrastructure, vocational education, childcare, medical care, pension and other livelihood services, and ecological protection, agriculture, forestry, water conservancy, energy, cold-chain logistics and other areas, accounting for about 80 percent. in general, the issuance and use of special bonds in 2020 was sound and in line with policy expectations, effectively playing a positive role in hedging the impact of the epidemic, expanding effective investment, and promoting the smooth operation of the macro economy.
in the next step, the ministry of finance will further consolidate the management system, strengthen the management of special bonds, improve the performance of the use of government bond funds, and give full play to the positive role of special bonds in accelerating the construction of major projects, doing a good job in the "six stability" work and implementing the "six guarantees" task. first, we issued the work guidelines in a timely manner. we will clarify the procedures, scope, time limit, and information disclosure requirements for the adjustment of the use of special bonds, and guide local governments to carry out relevant work well, so that physical work can be done as soon as possible. second, we will continue to strengthen oversight. we will improve information-based supervision methods, carry out penetrating supervision over the management of special bonds, timely grasp information on the use of project funds and the progress of construction, and urge local governments to use bond funds in a standardized way. third, we will strengthen information disclosure. we will give full play to the role of a unified national platform for releasing information on local government debt, urge local governments to release information on bonds, the progress of project construction and the use of funds, and strengthen external constraints through information disclosure. fourth, we will get ready for special bond projects. we will guide local governments to prepare for high-quality projects for 2021 special bonds, adhere to negative list management, and ensure that projects are qualified and compliant. insist on the formation of effective investment to ensure the formation of physical workload; we will continue to guard against debt risks and ensure that legal bonds do not incur risks.
the risks of local government bonds are generally under control
as of late 2020, local government debt balance is 25.66 trillion yuan, are controlled within the approved quota of 28.81 trillion yuan of the national people's congress, and included in the budget management of the central government debt balance is 20.89 trillion yuan, the national government debt balance is 46.55 trillion yuan, according to the national bureau of statistics released 2020 preliminary accounting for 101.6 trillion yuan gdp, the ratio of balance of government debt to gdp (ratio) of 45.8%, less than 60% of the common international cordon, risk control as a whole.
going forward, the ministry of finance will follow the principle of "opening the front door and blocking the back door", strengthen division of labor and cooperation and coordinated supervision with relevant departments, further improve the mechanism for standardizing local governments' borrowing and financing, and work to effectively defuse hidden debt risks.
first, we will continue to improve statutory debt management and keep the macro leverage ratio basically stable. taking into account the need to maintain steady growth and guard against risks, we will set an appropriate amount of government bonds and maintain an appropriate intensity of spending. we will continue to adhere to the principle of "funds follow projects", make good preparation for projects in advance, improve the mechanism for determining special bond projects, appropriately relax the time limit on issuance, reasonably expand the scope of use, and improve the performance of bond funds. second, we will make persistent efforts to guard against and defuse hidden debt risks. we will resolutely curb the growth of hidden debt, and all new hidden debt activities will be discovered, prosecuted, and held accountable, and will be held accountable throughout the life of the country and retroactively investigated. we will prudently reduce the stock of hidden debt, improve mechanisms for regular monitoring, verification, and oversight, identify and deal with potential risks of hidden debt as early as possible, and ensure that no systemic risk occurs.
source: ministry of finance, prc