China’s Ministry of Finance (MOF) officially released the central government fiscal budget for 2021 on 26 March, outlining expenditures of nearly 12 trillion yuan (approx. USD$1.83 trillion) this year.
The scale of the 2021 central budget is basically on par with that for 2020, with around 3.5 trillion yuan to be used at the central government level itself, and the remaining approximately 8.3 trillion yuan to be allocated to regional authorities for spending.
Out of 23 central government spending categories the overwhelming majority will see a decline in 2021, with the exception of several areas including national defence, debt payments and welfare housing, which are on track to post single-digit YoY gains.
While central government spending on science and technology will see no growth in 2021, basic research is on track to rise 10.6% YoY to around 66.2 billion yuan.
The central budget foresees a YoY increase in domestic value-added taxes this year of 11.5%, as well as an increase in personal income tax of 13.8% in tandem with rising urban incomes. Securities transaction stamp duties are expected to rise by 1.5%.
MOF also forecasts central government investment fund revenues of around 382.1 billion yuan in 2021, alongside state-owned capital operations revenues of 175.2 billion yuan, and central social insurance fund revenues of 985.3 billion yuan.