Second, reform of the budget management system was deepened and broadened. On the basis of the reform requiring all central and local government departments to prepare their budgets, we steadily implemented the trial reform to set the allowable amounts for expenditures on items that constitute part of salary and benefits in central government departments, practiced a method of managing project budgets on a rolling basis, and improved the uniformity, completeness and fairness of budget compilation. We tightened control over surplus budgetary funds and steadily implemented performance assessment trials to improve the performance of government funds. Management of non-tax revenue was improved, and progress continued in deepening the reform to separate the management of revenue from management of expenditures. The reform to set up a centralized treasury payment system was expanded in 2005 to include central government departments and over 3,300 of their subsidiary units responsible for preparing their own budgets, and the system now incorporates more than 370 billion yuan of budgetary funds. The reform of oversight for revenue collection and transfer was also expanded to include all central government departments with non-tax revenue. The reform to set up a centralized treasury system for collecting revenue and paying expenditures now covers 36 provinces, autonomous regions, municipalities directly under the central government and cities specially designated in the state plan as well as over 500 counties and more than 200 cities at the prefecture level. Significant progress was made across the country in the reform to establish a government procurement system, with both the central government and provincial-level governments completing separation of bodies responsible for managing government procurement from the bodies that use the purchased items, thus effecting separation of corresponding functions. Government procurement reached 25 0 billion yuan in 2005, a year-on-year increase of 36.4 billion yuan, resulting in an 11% drop in the use of funds. The Chairperson's Council of the NPC Standing Committee approved introduction of outstanding balance management of the national debt starting this year to raise the transparency of national debt management and reduce financial risk. Satisfactory results were attained in the pilot reform of the classification of government revenue and expenditures introduced in six central government departments and five provinces and municipalities directly under the central government. Progress in the establishment of the Government Financial Management Information System was accelerated and more effort was put into developing and implementing a public finance core activity system; a network system linking the central, provincial and city (prefectural) networks and connecting relevant functional departments and units responsible for preparing their own budgets at the same level has been basically established, thus laying a good foundation for efforts to apply IT in the management of public finance.