China's targets on an 11 percent revenue growth in 2005 by carrying out a prudent fiscal policy, according to a report on draft central and local budgets for 2005 which was submitted to lawmakers for approval Saturday.

The Ministry of Finance report on the implementation of the central and local budgets for 2004 and on the draft central and local budgets for 2005, submitted to the annual session of the National People's Congress (NPC), China's top legislature, to be examined and approved by NPC deputies, also set forth other major budgetary targets for 2005.

According to the report, the total revenue in the central budget should be about 1.67 trillion yuan (about 201.2 billion US dollar), an increase of 158.05 billion yuan or 10.5 percent over 2004.

The report says expenditures in the central budget should total1.97 trillion yuan, a rise of 138.77 billion yuan or 7.6 percent. Expenditures should exceed revenue in the central budget, leaving a deficit of 300 billion yuan, 19.83 billion yuan less than that for 2004.

It says funds in the central budget for bond-financed projects in 2005 should total 80 billion yuan, 30 billion yuan less than last year. This total consists of 70 billion yuan listed in the central budget and 10 billion yuan of treasury bonds to be issued by the central government for local governments.

Allocations from the central budget for investment in regular development projects should increase by 10 billion yuan. The value of treasury bonds to be issued in 2005 should total 692.34 billion yuan, 392.34 billion yuan of which is to be used by the central government to repay the principal on domestic and foreign debts due in 2005 and 300 billion yuan of which will be used to cover this year's deficit, according to the report.

In addition, 10 billion yuan will be issued by the central government for local governments, says the report, it says.

Total revenue in the draft central and local budgets for 2005 is set at 2.93 trillion yuan, 289.92 billion yuan or 11 percent more than in 2004. Total expenditures in the draft central and local budgets should amount to 3.23 trillion yuan, an increase of 389.42 billion yuan or 13.7 percent, the report says.

The report also says expenditures will focus on balanced and long-range development, being increased in some areas and brought under control in others in conformity with the requirements of a prudent fiscal policy.

Priority will be given to efforts to shore up weak links in economic and social development to promote optimization of the economic structure; to areas, groups of people and lower-level government authorities that have financial difficulties in the effort to develop a harmonious society; and to reforms and innovations to change the pattern of economic growth, according to the report.

Editor: Catherine