The Communist Party of China (CPC) has always attached great importance to and continuously strengthened its leadership over the country’s fiscal work. The Third Plenary Session of the 18^th CPC Central Committee clearly stated that public finance is the foundation and an important pillar of national governance, thus driving fiscal work into a new historical period. Over the past decade, under the strong leadership of the CPC Central Committee with Xi Jinping at its core, the Ministry of Finance (MOF) has adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, upheld the new development philosophy, conscientiously coordinated the implementation of proactive fiscal policies, and made constant efforts to improve fiscal macro-regulation. We have strengthened financial and policy safeguards for the top priorities of the country, advanced fiscal and tax system reform, actively played a groundbreaking and pioneering role in deepening reforms in an all-round way, kept economic operation within a reasonable range and enhanced high-quality development.

－Over the past decade, the country's fiscal strength kept growing. The national fiscal revenue grew from 11.73 trillion yuan in 2012 to 20.25 trillion yuan in 2021, with an average annual growth rate of 6.9%. The quality of fiscal revenue has kept improving, with the national tax revenue accounting for 85.3% of the general public budget revenue, and a stable growth mechanism being developed. National fiscal expenditures increased from 12.6 trillion yuan in 2012 to 24.63 trillion yuan in 2021, with a focus on supporting areas such as education and science, agriculture and rural areas, ecological and environmental protection and people’s basic living needs, which greatly promoted overall economic and social development.

－Over the past decade, fiscal macro-regulation has continuously improved. General Secretary Xi Jinping stressed that macro-regulation must be based on the characteristics of the present development stage and changes in the economic situation, expanding demand and adjusting supply when necessary, which requires us to make discretionary choices and formulate corresponding measures. From 2012 to 2021, the MOF, in accordance with the decisions and plans of the CPC Central Committee and the State Council, maintained proactive fiscal policies and made appropriate pre-adjustments and fine-tuning, which effectively reduced the impact of economic cyclical fluctuations and strongly supported high-quality economic and social development. We have  kept deficit at an appropriate level, maintained a necessary fiscal expenditure intensity and provided a better guarantee for major national strategic tasks. We have implemented targeted tax and fee cuts and reduced the burden of enterprises by more than 8.6 trillion yuan from 2016 to 2021，which continuously helped stimulate market vitality. We have made scientific arrangements for the scale of government debt, and allocated a quota of 12.2 trillion yuan for new local government special bonds from 2015 to 2021, so as to support the expansion of effective investment. One trillion yuan of government bonds for COVID-19 control has been issued. We have fully implemented the requirements of “living on a tight budget” and strictly controlled the general expenditures. The outlays at the central government level have been cut, freeing up more financial resources to guarantee priorities and to strengthen weak links. We have established an innovative system for the regular transfer of direct fiscal funds and normalized its implementation to channel financial resources to lower-level governments and support the stable development of the economy and society in the long run.

－Over the past decade, the provision of fiscal support has become more targeted and effective. Advancing the Party's cause requires sufficient financial resources as the support. The MOF has been focusing on core issues, serving the country's overall interests, strengthening financial safeguards, and concentrating financial resources on major tasks. First, we have adhered to the innovation-driven development strategy and promoted the continuous optimization and stability of industrial and supply chains. General Secretary Xi Jinping emphasized that the defining feature of building a new development paradigm is to achieve high-level self-reliance and self-improvement. The MOF has stuck to the innovation-driven development strategy, prioritized scientific and technological expenditures, innovated and improved policy mechanisms, fully supported self-reliance and self-improvement in science and technology, and facilitated historic achievements and changes in the field. From 2012 to 2021, the general public budget for science and technology expenditures grew from 445.263 billion yuan to 967.671 billion yuan, with a cumulative aggregate of 7.1 trillion yuan. The budget focused on supporting basic research, technological breakthroughs in core areas, and the development of national strategic scientific and technological strengths. We implemented and improved taxation policies to support scientific and technological innovation, carried out policies of giving rewards and subsidies to specialized, fined, peculiar and innovative  small- and medium-sized enterprises (SMEs), reformed and refined the management of central government funding for scientific and technological research, and carried out mechanisms such as open competition for selecting the best candidates, which effectively stimulated the vitality of scientific and technological innovation and creativity. Second, we have worked to ensure and improve people’s well-being, and people's sense of gain, happiness and security have been significantly enhanced. General Secretary Xi Jinping stressed that the well-being of the people is the fundamental goal of development. The MOF has firmly adhered to a people-centered development philosophy and done everything within our capacity to continuously promote significant improvements in people's living standards. We have fully supported the critical battle against poverty. From 2012 to 2020, the cumulative amount of central government funds for poverty alleviation was 660.1 billion yuan, and in 2021, 156.1 billion yuan was allocated by the central government as assistance funds for promoting rural vitalization (formerly known as the central government funds for poverty alleviation). We have increased investment in sector-specific poverty alleviation programs, implemented policies such as the integration of agricultural funds to counties that emerged from poverty, and delivered the Two Assurances and Three Guarantees. We have made continuous efforts to meet people’s basic living needs. From 2012 to 2021, national fiscal expenditure on education increased from 2.12 trillion yuan to 3.82 trillion yuan, social security and employment expenditures increased from 1.26 trillion yuan to 3.44 trillion yuan, and health expenditures increased from 805.8 billion yuan to 1,865.9 billion yuan, with various policies to ensure people’s livelihoods taking effect. Third, we have made efforts to promote coordinated development between rural and urban areas and between different regions and ensure equal access to basic public services. General Secretary Xi Jinping stressed that coordination is both a tool and an objective for development, and at the same time, it is a standard and a yardstick for development evaluation. The MOF has fully implemented the new development philosophy and given full play to the role of transfer payments and fiscal and tax policies, so as to further promote balanced and coordinated development between rural and urban areas and between different regions. In supporting coordinated regional development, the transfer payment from the central government to local governments (including tax returns) increased from 4.54 trillion yuan in 2012 to 8.22 trillion yuan in 2021, with the transfer payment weighed toward financially challenged and less developed areas. To support and accelerate the modernization of agriculture and rural areas, the expenditures on agriculture, forestry and water conservancy from the national general public budget increased from 1.2 trillion yuan to 2.5 trillion yuan. To support major regional development strategies, we have studied and rolled out related fiscal and tax policies for the high-quality development of the Hainan Free Trade Port as well as the Guangdong-Hong Kong-Macao Greater Bay Area, and improved the financial support for old revolutionary base areas, areas with large ethnic minority populations, and border areas, so as to build a new pattern of urban-rural development and regional development. Fourth, we have continued to improve the environment and have made remarkable achievements in the nationwide battle to prevent and control pollution. General Secretary Xi Jinping stressed that a sound eco-environment is the most basic public good that benefits all. The MOF has resolutely implemented Xi Jinping Thought on Eco-civilization and increased financial input to secure success in the battle to prevent and control pollution. The national fiscal expenditure on energy conservation and environmental protection grew from 296.346 billion yuan to 553.636 billion yuan from 2012 to 2021 to solve prominent environmental problems, with an annual average growth rate of 7.2 percent. Meanwhile, we have applied policies of tax regulation, ecological compensation, and green government procurement to markedly improve the environment and deliver favorable results in green development. At present, the average concentration of PM 2.5 hazardous particles in 337 cities at and above the prefecture-level is 30 micrograms per cubic meter, with the proportion of days with good air quality reaching 87%.

－Over the past decade, the reform of the fiscal and tax systems has made great strides. As emphasized by General Secretary Xi Jinping, scientific fiscal and tax systems are the institutional guarantee for improving resource allocation, maintaining market unity, promoting social equity and realizing enduring peace and stability. Aiming for a modernized fiscal and tax system, the MOF has sped up reforms in key areas. The reform of the budget management system was deepened and an all-around, whole-process and full-coverage budget performance management system has been established. A reform plan was initiated for the division of fiscal powers and expenditure responsibilities between the central and local governments in major areas to accelerate the establishment of intergovernmental fiscal relations, with clearly defined powers and responsibilities, coordinated allocation of financial resources and balanced treatment among regions. Efforts were made to speed up tax system reform, further deepen VAT reform and optimize corporate income tax. We have established a preliminary personal income tax system combining comprehensive and classified categories, and steadily improved the local tax system. Reforms concerning state-owned assets, state-owned enterprises and the financial sector were solidly advanced. Constant efforts were made to build law-based, systemic and meticulous financial governance, in a bid to regulate financial management behaviors and increase effectiveness of financial governance. Supervision over finance and accounting was intensified, financial discipline was tightened, and the level of financial governance was steadily improved.

－Over the past decade, in-depth international financial cooperation has been carried out. As emphasized by General Secretary Xi Jinping, we will remain committed to promoting peace, development, cooperation and mutual benefit, work to build a new type of international relations and a community with a shared future for mankind, and use China’s new achievements in development to provide the world with new opportunities. The MOF has deepened practical cooperation in financial areas in a bid to actively implement the Global Development Initiative, serve major country diplomacy with Chinese characteristics, and improve China’s discourse power and influence in the global economic governance system. We have strengthened multilateral and bilateral financial dialogues through key platforms such as the G20, BRICS, the "1+6" Roundtable and APEC. We initiated the founding of the Asian Infrastructure Investment Bank, facilitated the establishment of the New Development Bank and led the efforts to set up the Multilateral Cooperation Center for Development Finance, and thus provided support for tangible implementation of the Belt and Road Initiative. We voluntarily lowered the overall tariff level from 9.8 percent in 2010 to 7.4 percent, and actively supported the construction of a high-standard free trade zone network for a new open economic system.

2022 is an important year for building China into a modern socialist country in all respects and embarking on a new journey toward the second centenary goal. Our Party will hold its 20^th National Congress this year. The MOF will rally more closely around the CPC Central Committee with Comrade Xi Jinping at its core, understand deeply the decisive significance of the “Two Establishments” (The Party has established Comrade Xi Jinping’s core position on the CPC Central Committee and in the Party as a whole and defined the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era), strengthen our consciousness of the need to maintain political integrity, think in big-picture terms, follow the leadership core, and keep in alignment with the central Party leadership, enhance our confidence in the path, theory, system, and culture of Socialism with Chinese Characteristics, uphold Comrade Xi Jinping's core position on the CPC Central Committee and in the Party as a whole, and uphold the Central Committee's authority and its centralized, unified leadership. We will keep firm in mind the top priorities of the country and give better play to finance as the foundation and an important pillar of national governance, make economic stability our top priority and pursue progress while ensuring stability, work for the overall development of the Party and the country and take concrete actions to prepare for the successful opening of the 20^th CPC National Congress.