Government Revenue refers to the revenue of the government finance by means of participating in the distribution of the social products, which is the financial resources for ensuring the government to function. The contents of government revenue include the following main items:

(1) Various tax revenues, including value added tax, business tax, consumption tax, land value added tax, tax on city maintenance and construction, resources tax, tax on use of urban land, stamp tax, personal income tax, enterprise income tax, tariff, tax on agriculture and animal husbandry and tax on occupancy of cultivated land, etc.

(2) Special revenues, including revenue collected from imposing fee on sewage treatment, revenue collected from imposing fee on urban water resources, and extra-charges for education, etc.

(3) Other revenues, including revenue from the repayment of capital construction loan, revenue from capital construction projects, and donations and grants.

(4) Planned subsidies for the losses of the state-owned enterprises. This is an item of negative revenue, used to eat up part of the government revenue.

Government Expenditure refers to the distribution and use of the funds the government finance has raised, so as to meet the needs of economic construction and various causes. It includes the following main items:

(1) Expenditure for capital construction. (2) Innovation funds of the enterprises. (3) Geological prospecting expenses. (4) Expenditures for science and technology promotion. (5) Expenditure for supporting rural production. (6) Operating expenses of the departments of farming, forestry, water conservancy and meteorology etc. (7) Operating expenses of the departments of industry, transport and commerce. (8) Operating expenses of the departments of culture, education, science and public health. (9) Pension for the disabled or for the families of the bereaved and relief funds for social welfare. (10) Expenditures for national defence. (11) Administrative expenses. (12) Expenditure for price subsidies.

Revenue of the Central Government and Revenue of the Local Government In accordance with the classification of the structure of the government finance in 1994 on the basis of the classification of channels for collection of tax revenues, the revenue of the central government and the revenue of the local governments have different coverage. The revenue of the central government includes tariff, consumption tax and value added tax levied by the customs, consumption tax, income tax of the enterprises subordinate to the central government, income taxes of the local banks, foreign-funded banks and non-bank financial institutions, business tax, income tax and profits of railways, head offices of banks, head office of insurance company, which are handed over to the government in a centralized way, tax on city maintenance and construction, 75% of the value added tax, tax on ocean petroleum resources, 50% of the tax on stock dealing (stamp tax). The revenue of the local governments includes business tax, income tax of the enterprises subordinate to the local government, personal income tax, tax on the use of urban land, tax on the adjustment of the investment in fixed assets, tax on town maintenance and construction, tax on real estates, tax on the use of vehicles and ships, stamp tax, slaughter tax, tax on agriculture and animal husbandry, tax on special agricultural products, tax on the occupancy of cultivated land, contract tax, 25% of the value added tax, 50% of the tax on stock dealing (stamp tax) and tax on resources other than the ocean petroleum resources.

Expenditure of the central government and expenditure of the local governments according to the different functions of the central government and local governments in the economic and social activities, the rights of affairs administration are classified between the central government and local governments; and the classification of the expenditure between the central government and local governments are made on the basis of the classification of the rights of affairs administration between them. The expenditure of the central government includes the expenditure for national defence, expenditure for armed police forces, the administrative expenses and various operating expenses at the level of central government, expenditure for key projects and the expenditure of the central government for adjusting the national economic structure, coordinating the development among different regions and exercising the macro-economic regulation and control. The expenditure of the local governments includes mainly the administrative expenses and various operating expenses at the level of local governments, the expenditure for capital construction and technological innovation with the funds raised by the local government, expenditure for supporting rural production, expenditure for city maintenance and construction and expenditure for price subsidies, etc.

Retail Price Index reflects the general change in retail prices of commodities. The change and adjustment in retail prices directly affect the living expenditure of urban and rural residents, government revenue, purchasing power of residents and the equilibrium of market supply and demand, and the ratio of consumption to accumulation. Therefore, the calculation of retail price index is useful to analyze the changes of the above economic activities.

Consumer Price Index reflects the trend and degree of changes in prices of consumer goods and services purchased by urban and rural residents, and is a composite index derived from the urban consumer price index and the rural consumer price index. Consumer price index can be used to analyze the impact of consumer price change on actual expenditure for living cost of urban and rural residents.

Urban Consumer Price Index reflects the trend and degree of changes in prices of consumer goods and services purchased by urban households. It can be used to observe and analyze the impact of price changes in consumer goods and services on money wages of staff and workers, and provide basis for policy making concerning the living cost and wages of staff and workers.

Rural Consumer Price Index reflects the trend and degree of changes in prices of consumer goods and services purchased by rural households. It can be used to observe the impact of change in retail prices of consumer goods and service prices in rural areas on living expenditure of rural households, and to show the changes in the living standard of peasants. It provides basis for analysis and research on condition of life in rural areas.