Core Viewpoint - The report outlines five key fiscal priorities for 2024, emphasizing the need for proactive fiscal policies to stabilize the economy and support employment, businesses, and market expectations [1][2]. Group 1: Fiscal Policy Implementation - The government plans to accelerate the issuance and utilization of ultra-long special bonds and special bonds to enhance fiscal support for economic recovery [1][2]. - In the first five months of the year, the issuance of national bonds reached 6.29 trillion yuan, a year-on-year increase of 38.5%, while local government bonds increased by 36.6% to 1.98 trillion yuan [2]. - The report indicates that 2.24 trillion yuan of new special bonds are still pending issuance for the year, with expectations for completion in the first three quarters [3]. Group 2: Social Welfare and Employment Support - The report emphasizes a strong focus on social welfare, with significant allocations for social security, education, and healthcare, amounting to approximately 2 trillion yuan, 1.7 trillion yuan, and 900 billion yuan respectively in the first five months [3]. - The government aims to enhance employment support and improve living standards through targeted subsidies and a robust social assistance system [3]. Group 3: Debt Management and Risk Prevention - The report highlights the importance of managing local debt risks and ensuring the "three guarantees" (basic livelihood, wages, and operational stability) are met [5][6]. - In the first five months, local governments issued 1.63 trillion yuan in refinancing bonds to replace hidden debts, achieving 81.5% of the annual target [6]. - The report calls for ongoing reforms in fiscal management and debt replacement strategies to enhance governance efficiency [6][7]. Group 4: Economic Development and Quality Improvement - The report stresses the need to improve development quality by supporting education and technology, and by utilizing special funds and tax incentives to foster traditional and emerging industries [7]. - It also emphasizes the importance of rural revitalization and new urbanization efforts to promote regional coordination and urban-rural integration [7].

Core Viewpoint - The report from the Finance and Economic Committee of the 14th National People's Congress emphasizes the need to deepen zero-based budgeting reforms to enhance the proportion of budgeted investments that are effectively allocated to projects and units [1] Group 1: Budgetary Practices - The report highlights the importance of organizing revenue collection in accordance with laws and regulations, explicitly prohibiting the collection of "excessive taxes and fees" [1] - It stresses adherence to the Budget Law, reinforcing budget constraints to ensure fiscal discipline [1] Group 2: Zero-Based Budgeting - The committee advocates for the deepening of zero-based budgeting reforms, aiming to improve the scientific and rational nature of budget preparation [1] - There is a focus on increasing the proportion of budgeted investments that are actually implemented in projects and units [1] Group 3: Budget Execution - The report calls for strict regulation of budget execution practices, including the management of reallocations and transfers between different budget categories [1]

Group 1 - The core viewpoint of the report emphasizes the need to deepen economic reforms in key areas and accelerate the implementation of significant reform measures [1] Group 2 - The report suggests advancing fiscal and tax system reforms, including the promotion of zero-based budgeting to break the "base" mindset and rigid spending patterns [1] - It recommends improving the transfer payment evaluation and adjustment mechanism and gradually expanding the scope of state-owned capital management budget preparation to enhance distribution accuracy [1] Group 3 - The report calls for the optimization of state-owned enterprise governance systems, urging state-owned enterprises to focus on their main businesses and accelerate the establishment of evaluation systems for fulfilling strategic missions [1] - It highlights the need to refine and strictly implement the "three major and one large" decision-making and execution mechanisms, with a focus on accountability for serious consequences resulting from violations [1]

Core Viewpoint - The 20th Central Committee of the Communist Party of China emphasizes the importance of deepening fiscal and tax system reforms, specifically through the implementation of zero-based budgeting reform [1][2] Group 1: Zero-Based Budgeting Concept - Zero-based budgeting starts from "zero" and does not consider previous budget arrangements, focusing on actual needs and prioritizing expenditures based on urgency and financial capacity [1] - This approach aims to break the dependency on previous budget baselines, allowing for a comprehensive reassessment of all budget items and prioritizing essential expenditures [1][2] Group 2: Rationale for Reform - Implementing zero-based budgeting reform is crucial for modernizing budget management and enhancing government governance capabilities [2] - The reform supports timely adjustments to revenue and expenditure structures, improving the effectiveness of fiscal policies in response to changing economic conditions [2][3] Group 3: Current Fiscal Context - In 2024, China's general public budget revenue is projected at 21,970.212 billion yuan, achieving 98.1% of the initial budget, with a year-on-year growth of 1.3% [3] - The fiscal environment is characterized by tight balance, necessitating the prioritization of limited resources for major strategic tasks and key livelihood projects through performance evaluation and prioritization [3] Group 4: Implementation Strategies - Enhancing budget coordination capabilities is essential, requiring a comprehensive approach that integrates various budget systems and revenue activities [4] - Strengthening top-level design and establishing cross-departmental collaboration mechanisms are critical to overcoming fragmentation and improving policy execution efficiency [4] - Developing a scientific and standardized budget performance management system is fundamental for achieving the goals of zero-based budgeting reform [4][5] - Continuous investment in professional talent and technical support is necessary to ensure the successful implementation of the reform [5]

1. Report Industry Investment Rating No industry investment rating information is provided in the report. 2. Core View of the Report The current fiscal revenue and expenditure of local governments are in a tight - balance situation. The traditional "base + growth" budget model has drawbacks such as rigid fund allocation and resource waste. Zero - based budgeting, which focuses on actual needs and financial conditions, can improve the efficiency of fiscal resource allocation. The reform of zero - based budgeting is a gradual process, and it is expected to be gradually promoted across the country. The process is more important than the result, aiming to ensure rigid expenditures and support effective industrial development and upgrading [2][4]. 3. Summary According to the Directory 3.1 Zero - based Budget Reform Background - Local governments face a prominent contradiction between fiscal revenue and expenditure. In 2024, the national government - funded budget revenue was 6.209 trillion yuan, a 12.2% decrease from the previous year, and the state - owned land use right transfer revenue decreased by 16%. Compared with the peak in 2021, it has decreased by nearly 3.6 trillion yuan. The expenditure pressure comes from various aspects, such as the "Three Guarantees" and debt repayment [10]. - The traditional incremental budget management model cannot meet the new situation, and relevant policies have emphasized the use of zero - based budgeting concepts to break the rigid expenditure pattern [11]. - The Third Plenary Session of the 20th CPC Central Committee in 2024 proposed to deepen the zero - based budget reform as a core task of fiscal and tax system reform, and the 2025 Government Work Report supported local zero - based budget reform [12]. 3.2 Zero - based Budget Reform: Meaning, Progress, and Challenges 3.2.1 Meaning and Advantages - The traditional "base + growth" budget model has the advantage of improving budget management efficiency and stability, but it also has disadvantages such as rigid fund allocation and resource waste. Zero - based budgeting, on the other hand, considers actual needs and financial conditions, breaking the "base" concept and rigid expenditure pattern to improve resource allocation efficiency [29][30]. 3.2.2 Zero - based Budget Reform Progress and Current Situation: Preliminary Exploration - **Reform Progress Bar**: The concept of zero - based budgeting was proposed in the 1950s and was implemented in the United States in the 1970s. In China, some localities piloted it in 1993. In the current budget - tight context, the zero - based budget concept has returned to the reform agenda, with central guidance provided in 2021 and 2024 [35]. - **Provincial - level Reform**: Provinces such as Guangdong, Guizhou, Shaanxi, and Tianjin explored earlier, and Anhui, Jiangsu, and Guangxi have also carried out reforms in recent years. Different provinces have different focuses and intensities in reform [3][36]. - **City - and County - level Reform**: They refer to the provincial reform plans and combine local conditions. For example, Wuxi has formed a zero - based budget model through three - year reform practice [37]. - **Reform Case: Anhui** - **Anhui Zero - based Budget 1.0 Version**: In 2022, Anhui launched the reform, focusing on industries and technology. In 2023, it "squeezed" out over 800 million yuan of ineffective fiscal funds at the provincial level. The number of budget items decreased, and the general public budget expenditure at the provincial level decreased. The reform also led to changes in the structure of fiscal revenue and expenditure [43][44][47]. - **Anhui Zero - based Budget 2.0 Version**: In 2025, Anhui launched the 2.0 version, extending the reform to the county - level and to areas such as people's livelihood and public services, and promoting cost - based budget performance management [59][60]. 3.2.3 Comparison of Key Points of Zero - based Budget Reform Schemes in Different Provinces - **Reform of Budget Preparation Methods**: This includes project expenditure refinement, industry - specific reform directions, and the establishment of project sorting mechanisms. For example, Jiangsu requires project funds to be refined, and Anhui focuses on industries and technology first [64][66][67]. - **Strengthening Fiscal Resource Coordination**: Non - tax revenue does not determine budget expenditures, and special funds have clear management regulations. For example, Jiangsu implements the "two - line management" of non - tax revenue, and Anhui sets a maximum three - year execution period for special funds [68]. - **Deepening Supporting System Reforms**: For example, Hunan proposes to establish a system to reduce fiscal expenditure standards and promote project life - cycle management [69]. - **Standardizing Budget Management**: Hunan proposes not to link budget arrangements with certain revenue indicators and to strengthen the management of treasury temporary payments [70]. 3.2.4 Comparison of Reform Effects - Anhui significantly reduced ineffective policies and expenditures after the reform in 2022, and the general public budget expenditure at the provincial level decreased in 2023. - Guangxi reduced "Three Publics and Two Fees" and increased transfer payments to cities and counties [77][79]. 3.2.5 Challenges in Reform - High requirements for budget preparation personnel: Zero - based budgeting requires high - frequency evaluation of project rationality and life - cycle tracking, which is time - consuming and requires a large number of professional personnel [82]. - Reform resistance: It may change the original expenditure structure and face resistance from some groups [82]. - Lack of supporting measures: The reform requires the coordinated advancement of relevant laws, regulations, and information construction, but currently, the reform synergy is insufficient [82]. 3.3 Reform Outlook The zero - based budget reform is a gradual process, and it is expected to be gradually promoted across the country. Different regions will have different progress based on their economic and political environments. The reform should be carried out incrementally, starting with strict approval of new projects and performance evaluation of existing projects [4][85].

Core Viewpoint - The Jiangsu Provincial People's Congress is reviewing the performance of the fiscal science and technology special funds for 2024, highlighting both progress and areas needing improvement in funding allocation and effectiveness [1][2]. Funding Allocation and Performance - Jiangsu's fiscal science and technology special funds have seen increased investment, with a notable rise in basic research funding from 3.077 billion yuan in 2022 to 6.724 billion yuan in 2024, marking a doubling in short-term investment [2][3]. - The basic research funding proportion in Jiangsu is 4.94%, significantly lower than Shanghai's 10.56%, despite similar total R&D expenditures [2]. Evaluation and Management - The provincial government is developing a performance evaluation system for laboratories, focusing on macro, meso, and micro indicators to assess the effectiveness of funding and research outcomes [3]. - A comprehensive performance management system is being implemented to address issues such as slow project progress and improper fund usage, with a focus on contract management and monitoring of project milestones [4][5]. Audit Findings and Rectification - Recent audits have identified 23 areas for improvement in the management and use of science and technology special funds, leading to the establishment of a task list for rectification [7][8]. - All identified issues have been addressed as of June 30, 2023, resulting in optimized funding allocation and improved project management processes [8].

【点评】 实际工作中，多数地方和部门的预算编制按照以上一年支出为基数、适当考虑一定增长比例的方式分配 资金。零基预算，是以"零"为起点，不考虑以往预算安排基数，不参照过去的预算项目和收支水平，重 新审视各项支出的必要性、成本效益、开支标准及优先级，在综合平衡的基础上进行预算编制。 传统模式虽简便易行，但容易造成支出固化僵化、"为花钱而花钱"等问题，不利于优化支出结构、提高 财政使用效益，一定程度上影响预算平衡、资源统筹和财政可持续。而零基预算更多从实际需要、财力 状况、事项轻重缓急出发，能更灵活应对内外环境的变化，更贴近预算年度真实经济活动需要。深化零 基预算改革有助于加强预算控制、提升资金配置效率和使用效益，为经济社会发展提供更充足的"血 氧"。 【现象】今年的《政府工作报告》提出，"开展中央部门零基预算改革试点，支持地方深化零基预算改 革"。多地出台方案、加快探索步伐：江西从编制2025年预算起，对到期的阶段性项目、与基本支出高 度重叠的日常运转类项目等，原则上全面清理退出；广东广州制定市本级行政事业单位国有资产共享共 用试行办法，将低效、闲置、超配资产调剂共享，进一步降低机关运行成本；江苏南京对政府投资 ...

□ 杨松 制度化护航，健全科学管理机制。该局制定转移支付统筹办法、非税收入管理系列政策，推动教育科技 人才等专项资金"跨部门、跨领域"统筹使用。建立财政承受能力论证机制，对新增重大支出实行"一事 一议"审批，确保财政运行安全可持续。修订城建重点工程资金管理办法，推动PPP项目支出责任优 化，构建"立项—建设—转固"全周期监管体系。 智能化赋能，构建高效管理格局。该局建设预算管理辅助平台，实现跨部门数据实时共享，运用人工智 能技术开展绩效目标设定、支出标准优化等场景应用。在办公平台设立改革专栏，通过"红橙黄绿"四色 指标体系实时跟踪任务进展，加快推进AI技术应用。 另外，为确保改革任务落地见效，徐州市财政局专门成立由局主要领导挂帅的改革工作领导小组，构 建"三级联动、全员参与"工作机制。实行责任落实清单化，明确20项任务牵头处室和责任人；打破处室 分工界限，组建跨部门联合专班；并将改革任务纳入年度考核，增设"改革攻坚""AI应用"专项评价，考 核结果与评优评先直接挂钩。 4大抓手齐发力，20项行动促变革。该局本次改革构建"1+2+N"总体框架(即1个中心、2个主要支撑点、 N个编审举措)，围绕"精细化、标准化、 ...

Core Viewpoint - The financial performance of Xuzhou in the first quarter shows a stable growth in public budget revenue, with a focus on enhancing fiscal management and supporting high-quality development amidst economic challenges [1][2][3] Group 1: Revenue Performance - Xuzhou's general public budget revenue reached 17.563 billion yuan, a year-on-year increase of 1.5%, with tax revenue accounting for 70.6% of total revenue, up 1.4 percentage points from the previous year [1] - The city implemented a "weekly scheduling, ten-day assessment, monthly reporting" mechanism to enhance revenue collection, with specific strategies tailored for different districts, resulting in stable growth in areas like Pizhou, which led the city with an 8.4% increase [2] - Major tax categories such as value-added tax and corporate income tax grew by 12% and 7.1% respectively, indicating a sustained release of economic development momentum [2] Group 2: Expenditure and Social Welfare - In the first quarter, general public budget expenditure totaled 26.573 billion yuan, with over 80% allocated to social welfare, ensuring strong support for key areas [1] - Health expenditure increased by 32.5% year-on-year, while social security and employment spending rose by 25.2%, reflecting a commitment to enhancing public health and supporting employment policies [2] Group 3: Fiscal Management Innovations - The financial bureau is planning for a zero-based budgeting reform for 2026, focusing on refined, standardized, institutionalized, and intelligent management practices [3] - The bureau has also completed a review of budget unit funds and optimized fund storage to improve efficiency, while actively managing state-owned assets to enhance asset management quality [3]

Group 1 - The overall agenda of the Two Sessions in 2025 remains largely unchanged compared to 2024, with significant legislative activities including the review and approval of the revised National People's Congress and local people's congresses representative law [1][10][15] - The government work report sets a fiscal deficit target of around 4%, the highest since 2010, indicating a proactive stance on leveraging debt [3][17] - The emphasis on stabilizing asset prices, particularly in the real estate and stock markets, is a notable shift in macroeconomic management [4][5] Group 2 - The monetary policy continues to emphasize "appropriate easing," with plans for potential reserve requirement ratio (RRR) and interest rate cuts to maintain liquidity [2][24] - The government aims to implement a more active fiscal policy, with a focus on increasing public spending and supporting consumption through special bonds [3][19] - The report highlights the acceleration of reforms in the capital market, with a focus on enhancing the health of the stock market and supporting strategic industries [4][18] Group 3 - The real estate sector is undergoing a transformation towards higher quality and sustainability, moving from "incremental expansion" to "stock quality improvement" [5][19] - Employment stability is prioritized, with initiatives aimed at improving job matching efficiency and supporting entrepreneurship [6][18] - The government is set to support emerging industries such as quantum technology, embodied intelligence, and 6G, indicating a shift in focus towards future industries [7][18]