In line with the above philosophy, the major budgetary targets for 2006 were set as follows. Total revenue in the central government budget should reach 1.927204 trillion yuan, an increase of 202.225 billion yuan or 11.7% over the amount for 2005. This figure includes 1.85203 trillion yuan in revenue collected by the central government, an increase of 198.436 billion yuan or 12% compared to the 2005 revenue. Expenditures in the central government budget total 2.222204 trillion yuan, a rise of 197.263 billion yuan or 9.7%. This figure includes 952.5 billion yuan of expenditures for the central government, up 74.927 billion yuan or 8.5% over 2005, and 1.269704 trillion yuan in tax rebates and subsidies for local governments, up 122.336 billion yuan or 10.7%. Expenditures exceed revenue in the central government budget, leaving a deficit of 295 billion yuan, 5 billion yuan less than that for 2005. The deficit will drop to 1.5% of the GDP. Funds in the central government budget for bond-financed projects in 2006 total 60 billion yuan, 20 billion yuan less than in 2005 (including a reduction of 10 billion yuan worth of treasury bonds issued by the central government for local governments). In addition, allocations from the central government budget for investment in regular construction projects have been increased by 10 billion yuan. The outstanding national debt in the central government budget will reach 3.5568 trillion yuan, an increase of 295.4 billion yuan over 2005 calculated in comparable terms. Total revenue in the draft central and local budgets for 2006 is 3.542338 trillion yuan, 379.54 billion yuan or 12% more than that for 2005. Total expenditures in the draft central and local budgets amount to 3.837338 trillion yuan, up 466.536 billion yuan or 13.8%.

Figure 4