China will continue to pursue a proactive fiscal policy next year.
According to Finance Minister
Xiang Huaicheng, this means the country will continue to issue
special treasurer bonds, as it did in the past four years, to fund
infrastructural projects and generate demand to invigorate the
economy.
However, Xiang added his ministry will guard against inputs into
unnecessary projects.
The remarks were made on Tuesday as he addressed the finance
ministry and local finance bureau officials on next year's fiscal
work at the National Finance Meeting in Beijing.
Other major economic officials have said projects launched in
previous years, as well as this year, will be the focus of
government investments.
He
said the ministry will also work to stabilize the current taxation
system but also urged his colleagues to review and adjust fiscal
and tax regulations and policies according to the rules of the
World Trade Organization.
Xiang also said the country will improve its accounting system to
accelerate the system's integration with international norms.
The minister said the government's financial condition is
favorable.
During the first 11 months, fiscal incomes grew 23.1 percent
compared with the same period last year to reach 1.47 trillion yuan
(US$177 billion).
Expenditures during the January to November period totaled 1.45
trillion yuan (US$175 billion), up 21.8 percent.
The government's actual deficit for the whole year is expected to
be smaller than budgeted, he concluded.
Xiang attributed the rapid growth of fiscal revenue to the proper
economic policy that the Chinese Government adopted to maintain a
stable growth. In the same time, he said the government has stepped
up efforts to plug loopholes in tax collection.
Xiang said the central government will also increase payment to
less-developed areas in the central and western parts of the
country next year. It already allocated 87.3 billion yuan (US$10.5
billion) to local governments mainly for the payment of wages of
government employees this year.
(China
Daily December 19, 2001)