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- Chinese Finance Minister: China will adopt a more active financial policy
Chinese Finance Minister: China will adopt a more active financial policy
The Chinese Finance Minister said the country will adopt a more active financial policy, but it will not resort to a stream of strong stimulus policies, Xinhua reported.
Finance Minister Liu said that fiscal policy needs to be more forward-looking, flexible and efficient in order to play a larger role in boosting demand, restructuring the economy and promoting quality development.
Liu said that proactive financial policies will give priority to four sectors: reducing taxes and fees, improving weak ties, encouraging consumption and improving people's livelihoods.
In addition to the policy aimed at reducing taxes and fees, announced at the beginning of the year, China announced an increase in support for the real economy and technological innovation, which will help reduce the burden on enterprises by more than 1.3 trillion yuan (about $ 188.4 billion) this year.
He said that the ministry is working on more extensive measures to reduce taxes and fees, which, if implemented, will lead to the fact that the growth of budget revenues will remain low in the coming months.
The country's budget revenues rose in August by 4% year on year to 1.11 trillion yuan, slowing down from a 6.1 percent increase in July.
With the growth of the economy on a sustainable basis and an increase in tax revenues, China lowered the target budget deficit for 2018 to 2.6% of GDP, which is 0.4 percentage points less than in 2017.
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