Second, improvements were instituted in basic accounting work. We stepped up the effort to bring China's accounting and auditing standards in line with international practices and train more accounting experts, improved management of certified public accountants and strengthened their integrity. We organized unified examinations to evaluate accounting firms and the quality of corporate accounting information.

Third, constant efforts were made to improve public finance oversight. We focused this effort on oversight for key funds closely watched by the public by promoting more effective oversight. The mechanism for financial oversight became sounder and the efficiency of oversight improved. Irregularities in funds totaling 60.6 billion yuan were discovered in 2005, resulting in reduction in total expenditures and recovery of funds totaling 15.9 billion yuan and collection of 26.6 billion yuan of non-tax revenue for the central government budget.

Fourth, improvement efforts were intensified. The State Council attached great importance to the relevant decisions of the NPC as well as the comments and suggestions raised in auditing reports. The State Council called on all concerned departments and organizations to subject their work to auditing oversight, implement auditing decisions, and correct any problems. All concerned departments and organizations have now improved their work. Most of the problems arising in the implementation of the central government budget that were discovered in the auditing process were solved, and the responsible parties were held accountable. As of the end of October 2005, 1.183 billion yuan of funds had been recovered, 472 rules and regulations had been revised, and 121 persons had been subjected to disciplinary action by the Party or the government. The State Council reported the improvements to the NPC Standing Committee.

The year 2005 was the final year for implementing the Tenth Five-Year Plan. A review of the last five years shows that some changes have occurred in China's financial situation. The main changes are as follows.

The nation's financial strength continued to grow. Government revenue passed the important benchmarks of 2 trillion one year, 2.5 trillion the next and 3 trillion yuan the year after that. Total revenue during the Tenth Five-Year Plan period was 11.5 trillion yuan, representing a rise of 6.4 trillion yuan or 126.5% compared to the figure for the Ninth Five-Year Plan period. Breaking this down by level, there was a 141.5% gain in the revenue of the central government and a 111.3% gain in the revenue of local governments. The ratio of revenue to GDP in 2005, the final year of the Tenth Five-Year Plan period, reached 17.3%, 3.8 percentage points more than the 13.5% ratio of 2000, the final year of the Ninth Five-Year Plan period. The nation's expenditures totaled 12.8 trillion yuan, an increase of 7.1 trillion yuan or 124% compared to the figure for the Ninth Five-Year Plan period. Breaking this down by level, there was a 109.5% gain in expenditures of the central government and a corresponding 130.5% gain for local governments. Revenue growth was more stable and balanced and there was constant acceleration in the pace of growth in public finance.