More spending

Last year, the central government's financial deficit stood at 550 billion yuan, roughly the same as the budgeted figure, according to the report.

The central government's spending totaled 6.41 billion yuan in 2012, a year-on-year increase of 13.6 percent.

Although central fiscal revenue saw slower growth, the central government continued to expand spending on sectors directly linked to people's livelihoods, such as public housing, education and health services.

Spending in these sectors was 22.9 percent higher than last year, the report said.

About 378.16 million yuan was spent on education and 204.82 million yuan went to health services, according to the report.

Spending on affordable public housing programs totaled 260.16 billion yuan, 22.9 percent more than the budgeted figure, the report said.

Thanks to increasing government investment, more than 30 million primary and middle school students have enjoyed food subsidies and the government allowance for medical insurance programs has increased to 240 yuan per person a year.

About 6 million affordable apartments were built last year and 5.6 million rural families had their old houses renewed or rebuilt, according to the report.

This year, the central government will strictly control spending, especially the operational expenses of the government, Lou said.

However, the government will make sure to meet needs related toeducation, health, social security and scientific development, he added.

The government will also carry out more tax reforms to ease burdens for small businesses, as well as regulate tax-cutting and exemption policies and crack down on tax evasion.

Financial reform

On Thursday, the Financial and Economic Committee of the NPC also submitted a report after reviewing the State Council's report on the central final accounts.

The committee found that the central government had been too flexible about some expense items, especially those related to government funds and State-owned enterprises, said Liao Xiaojun, deputy director of the committee, when explaining the report to lawmakers.

More efforts are needed to improve the efficiency of governmentspending and the management of funds that the central government allocates to local governments, Liao said.

"We are fully aware of problems in the implementation of the central budget," Lou said, adding that the central government willwork to solve the problems by reforming the financial system and improving management.