China to Optimize Structure of Budgetary Expenditures

Home>>Business

Last updated at: (Beijing Time) Wednesday, March 06, 2002

China to Optimize Structure of Budgetary Expenditures

The structure of budgetary expenditures should be optimized to take more advantage of the role of finance in supporting economic growth, a senior Chinese official said here Wednesday.

DISCUSSION

CHINESE

SEND TO FRIEND

The structure of budgetary expenditures should be optimized to take more advantage of the role of finance in supporting economic growth, a senior Chinese official said here Wednesday.

Tax collection and administration need to be improved and no effort should be spared to collect budgetary revenues. The principle of "food first, development second" will be followed in making appropriate adjustments to optimize the structure of budgetary expenditures, said Zeng Peiyan, minister in charge of the State Development Planning Commission.

Zeng made the remarks in his Report on the Implementation of the 2001 Plan for National Economic and Social Development and on the Draft 2002 Plan for National Economic and Social Development, to the second plenary meeting of the Fifth Session of the Ninth National People's Congress (NPC).

"We will strengthen expenditure management, develop the country through diligence and frugality, practice economy in everything we do and resolutely combat waste and extravagance," he said.

The sharing of income tax revenue between central and local budgets according to a fixed proportion will be carefully organized. Total budget revenue should reach 1.8015 trillion yuan and total expenditures should amount to 2.1113 trillion yuan, leaving a central budget deficit of no more than 309.8 billion yuan.

More play will be given to the role of the prudent monetary policy so that finance will render more support for economic development. Wholly state-funded commercial banks should vigorously promote reform of the way they operate and strengthen their internal management. The structure of credit should be optimized, vigorous efforts will be made to improve financial services and the supporting loans for projects funded by treasury bonds must be guaranteed. The loan guarantee system for small enterprises will be improved. Small loans will be introduced vigorously and steadily in rural areas.

"We will continue to standardize and develop the securities market, promote the steady development of a security market system and appropriately increase enterprise bond issuance. The role of monetary policy instruments such as interest rate, open market operations and rediscount rate will be strengthened to allow more flexibility in regulating the money supply and meet reasonable capital demands in economic development," Zeng Peiyan said.

In addition, China will continue to keep the exchange rates for the Renminbi stable. Conscientious efforts will be made to tighten financial supervision, the quality of financial assets will be improved and the proportion of non-performing assets will be reduced to improve competitiveness and strengthen risk reduction capability.

Questions?Comments? Click here

China Maintains Steady, Rapid Economic Growth in 2001: Minister

NPC Annual Session Holds Second Plenary Meeting

Finance Minister on Central, Local Budgets

>> Full Coverage