(17) Improve the budget management system. Implement a comprehensive, standardized, open and transparent budget system. The focus of the audit budget has expanded from the balance and deficit scale to the expenditure budget and policy. Clean up and standardize the key expenditures linked to the increase of fiscal revenue and expenditure or GDP, and generally do not adopt the linked method. Establish a cross-annual budget balance mechanism, establish an accrual-based government comprehensive financial reporting system, and establish a standardized and reasonable central and local government debt management and risk early warning mechanism.
We will improve the growth mechanism of general transfer payments and focus on increasing transfer payments to old revolutionary base areas, ethnic minority areas, border areas and poverty-stricken areas. The local financial gap formed by the central government's policy of increasing expenditure is adjusted in principle through general transfer payments. Clean up and standardize special transfer payment projects, gradually cancel competitive areas and local funds, strictly control guiding, relief and emergency projects, and screen reserved projects, which belong to local affairs and are classified as general transfer payments.
(18) Improve the tax system. Deepen the tax reform, improve the local tax system, and gradually increase the proportion of direct taxes. Promote the reform of value-added tax and simplify the tax rate appropriately. Adjust the scope, links and tax rates of consumption tax, and include products with high energy consumption and high pollution and some high-end consumer goods into the scope of collection. Gradually establish a comprehensive and classified personal income tax system. Accelerate the legislation of real estate tax and promote the reform in a timely manner, accelerate the reform of resource tax, and promote the change of environmental protection fees into taxes.
In accordance with the principles of unified tax system, fair tax burden and promoting fair competition, we will strengthen the standardized management of tax incentives, especially regional tax incentives. The unification of preferential tax policies shall be stipulated by special tax laws and regulations to clean up and standardize preferential tax policies. Improve the national tax and local tax collection and management system.
(19) Establish a system suitable for expenditure responsibility. Moderately strengthen the central authority and expenditure responsibility, with national defense, diplomacy, national security, rules and management related to the national unified market as the central authority; Part of social security, cross-regional major project construction and maintenance, etc. As the rights of central and local colleagues, the relationship between power and responsibility is gradually straightened out; Regional public service as local affairs. The central and local governments shall bear and share the responsibility for expenditure according to the division of powers. The central government can entrust some administrative expenditure responsibilities to local governments by arranging transfer payments. For cross-regional public services that have a great impact on other regions, the central government bears part of the responsibility for local affairs expenditures through transfer payments.
Maintain the overall stability of the existing financial structure of the central and local governments, and further rationalize the income division between the central and local governments in combination with tax reform and considering the nature of taxes.