The reform of the budget management system itself has indeed made much breakthrough progress during our construction of public finance systems. As value-added tax (VAT) has a substantial impact on the tax system and overall revenue, its system reform matters significantly. A good idea about the VAT reform is to start a pilot project at first and then extend the experimental reform to the whole nation. The process of the VAT reform relies on the successful Corporate income tax (CIT) reform to a great extent. When different CIT systems apply to domestic and foreign enterprises, the actual tax burden for domestic enterprises is higher than that for foreign enterprises by at least 10 percentage points. Jin Renqing published Prudent Fiscal Policy Should be Carried out to Promote Steady and Rapid Economic Development right after the closing ceremony of the 2004 Central Economic Working Conference.