he People’s Bank of China (PBoC) announced on March 8 that it will turn over 1 trillion yuan (US$158.3b) in surplus profit to the central budget in 2022.
The money will be used to refund value-added tax, increase the central budget’s transfer payments to local governments, support enterprises and stabilize employment and livelihoods.
The money, to be submitted monthly, mainly comes from foreign-exchange reserve transactions over the past few years, which the bank said will neither lead to tax increases nor cause fiscal deficit.
Asking defined State-owned financial organs to turn over parts of their profit is an international practice of planning and macro-adjusting fiscal resources.
According to China’s Government Work Report released by the National People’s Congress during the 2022 two sessions, China’s 2022 general public budget expenditure is 26.7 trillion yuan (US$4.2t), an 8.4 percent increase on 2021.