Beijing's financial revenues totaled 508.13 billion yuan (US$72 billion) in 2016, a 7.5 percent increase year on year, according to the Beijing Municipal Bureau of Finance. It is the first time that the city's financial revenues have surpassed the 500-billion-yuan mark.
Quality and quantity were both achieved, with tax revenue accounting for 90 percent. The contribution of advantageous industries such as science and technology and high-end industries toward financial revenues has steadily increased, acting as a significant bolster to revenue growth.
Corporate tax and fees were reduced from May 1, 2016. The proportion of corporate contributions to basic old-age insurance for employees fell from 20 percent to 19 percent, unemployment insurance from 1 percent to 0.8 percent. With the promotion of replacing business tax with VAT, the tax burden on selected taxpayers decreased by 28.8% last year, with tax reductions totaling 64.14 billion yuan.
At least 80 percent of financial revenues have been used to improve people's livelihood. In 2016, the municipal government spent more than 28 billion yuan improving living conditions, including the construction of old-age care centers.
Public-private-partnership (PPP) projects have been boosted to attract more social investments. A total of 244 billion yuan were invested on 89 PPP projects, with 143, 8 billion yuan contributed by social capital. Beijing Xingyan Expressway is the first expressway built under the PPP model in the country with an investment of 13.1 billion yuan, of which about 10 billion came from social capital.