2. Guaranteeing funding to maintain the "five balances" and combating waste and extravagance. Although the size of the economy has been consistently growing in recent years along with a rapid increase in government revenue, we still need to keep our heads clear and become more alert to the possibility of danger. China is still in the primary stage of socialism. Safeguarding stability, promoting development, supporting reforms, and maintaining the "five balances" all require financial support and guarantees, leading to mounting pressure to increase expenditures in these areas. Just because government revenue growth has been pretty good absolutely does not mean we can start spending money as if it grew on trees. We must meet expenditures just as they are listed in the budget for key programs such as carrying out reform to establish a mechanism for guaranteeing funding for rural compulsory education, expanding the trial reform to set up a new type of rural cooperative medical care system, and promoting more innovations in science and technology. It is not only the central government that needs to ensure adequate funding in this regard; local governments also need to ensure they have enough funds to cover expenditures and leave no planned expenditures whatsoever without definite financial backing. We must meet the requirements of the "two imperatives" [It is imperative to always be modest, prudent and free from arrogance and rashness in our work and it is imperative to continue following a principle of hard struggle and plain living, tr.] by strictly managing expenses and being economical wherever possible, focusing efforts on holding down expenses for meetings, receptions and official car use, and taking effective measures to control the number of unnecessary forums, celebrations, and international conferences. We must also resolutely put a stop to the building of "image projects" and "vanity projects" and combat unplanned and redundant development. We will promote performance evaluations, oppose waste, extravagance, and frivolous squandering of funds, increase standardization, security and effectiveness of the use of budgetary funds, and promote the building of an economy-minded society.

3. Adopting new revenue and expenditure items in the government budget to further reform of the budgetary management system. The reform in the classification of revenue and expenditure items in the government budgets represents an innovation in the budget management system, one that has great significance for efforts to increase the transparency of the budget, improve budgetary management and oversight, attack corruption at the root and promote development of socialist democracy. On the basis of a careful review of our experience with the 2005 simulated trial classification of revenue and expenditure items in the budget, we will improve corresponding measures to gradually develop a scientific, standardized system for classifying budget items. The new headings for budget items will officially go into use in the 2007 budget. We need to further deepen the reform to implement a system of departmental budgets and a treasury management system. Both the central and provincial-level governments will expand the scope of the reform to centralize all expenditures through the treasury to all lower-level governments that prepare their own budgets, gradually expanding the scope until all government funds are included in the reform. This reform will also be carried out at the prefecture and city level and active measures will be taken to extend the reform to the county level. We need to promote the horizontal computerized integration of the accounts of finance departments and tax departments with the treasury and reform of the system for collecting and managing non-tax revenue to set up a sound mechanism for collecting and managing revenue. We will standardize management of government procurement and strengthen international coordination and cooperation in government procurement policy through operation of procurement policy, striving to push the scale of government procurement over 300 billion yuan. We need to promote introduction of outstanding balance management for the national debt to establish a scientific and flexible mechanism for managing it. We will promote the development of the Government Financial Management Information System to improve the online platform and security system for managing information on government finance. The management of state-owned assets in government administrative offices and public service institutions needs to be strengthened by improving related legislation to monitor all their assets and liabilities. Studies need to be conducted to address issues related to setting up a budgetary system for the operation of state capital.

4. Managing public finance in accordance with the law and improving oversight and management of public finance and basic accounting work. The Program for Promoting All Aspects of Law-Based Administration will be implemented, and we will promote revision of the Budget Law and the Law on Corporate Income Tax to improve legislation governing public finance. In accordance with the unified arrangements of the Central Committee and the State Council, we need to promote more openness in government work, formulate and introduce corresponding implementation measures, and willingly subject ourselves to public scrutiny. A sound oversight mechanism needs to be set up for public finance, one that covers all facets of public finance and follows transactions from before to during to after the fact. We will give full play to the positive role of oversight of government financial affairs in improving the market economic system, establishing and standardizing order in the market economy, ensuring implementation of macroeconomic policy for public finance, and enhancing the performance of government funds. We will formulate and introduce new accounting standards and auditing standards to form a system of accounting and auditing standards that meets the requirements for the development of China's socialist market economy and is more in line with international practices. Trustworthiness and professional ethics need to be strengthened through education. We need to improve the system of internal controls and corporate culture for enterprises and accounting firms, do a good job of managing and developing the profession of certified public accountants and appraisers, strictly manage and oversee the profession, improve the quality of information, and strengthen public trust in the profession. While increasing efforts to introduce innovations in the system of public finance management, we must willingly subject ourselves to the oversight of the NPC and auditing authorities, heighten our sense of mission and sense of urgency, strengthen our sense of responsibility to the people for managing public finance, improve oversight and management for the use of government funds, improve internal mechanisms, continuously promote standardization of the work of managing public finance, and prevent all types of violations of the laws and regulations governing financial and economic matters.

The year 2006 marks the start of the Eleventh Five-Year Development Guidelines. It is very important that we satisfactorily implement the budget and complete all facets of our public finance work. Under the leadership of the Central Committee with Comrade Hu Jintao as General Secretary, we must hold high the great banner of Deng Xiaoping Theory and the important thought of Three Represents and firmly instill and diligently implement a scientific outlook on development. In accordance with the requirements set at this session for economic and financial work, we will willingly subject ourselves to the oversight and guidance of the NPC for public finance work, solicit comments and suggestions from the CPPCC, make substantive changes in our work practices, carry out careful survey and research work, work hard to serve the overall interest of the country, enlarge the economic "pie" and the scale of public finance, put people first, be innovative and take the initiative in offering a hand, and contribute to promotion of sustained, fast, balanced and sound development of the national economy and smooth attainment of the objectives set in the Eleventh Five-Year Development Guidelines!

(China.org.cn March 16, 2006)