Beijing to adopt proactive fiscal policy to push economic growth
Oct 10, 2018 (China Knowledge) - China is contemplating updating its economic policy to counter challenges posed by the ongoing Sino-U.S. trade was and downward pressure on economy.
Liu Kun, China’s Minister of Finance has said that the country plans to create a stable and predictable macro climate in an effort to push Chinese economic growth forward. Under the premise, Chinese government needs to adopt a proactive fiscal policy.
Facing economic downward pressure, Beijing has made it clear that a proactive fiscal policy should be more favorable. More investments shall be pumped into major sectors and key links.
'It can never be translated into employing strong stimulus policy with economy-wide impact, but rather a more long-term one with flexibility and effectiveness, centering on playing a greater role in expanding domestic demand and social framework adjustment,’ said Liu in an interview with state owned Xinhua news agency.
He said that a proactive fiscal policy will reduce taxes and fees, boost consumption, improve weak links and improving people's livelihood. Also, making more efforts to cut taxes and increase spending are two drivers to push proactive fiscal policies forward.
The Minister added the effect of fiscal policies will be more reflected in speeding up issuing bonds and implementing budget, ensuring the usage of funds from local authority.
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