China Sets Key Areas of Proactive Fiscal Policy

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Last updated at: (Beijing Time) Thursday, December 26, 2002

China Sets Key Areas of Proactive Fiscal Policy

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China will continue its proactive fiscal policy in 2003 by concentrating resources on major projects, rural development, economic restructuring and environmental protection, a senior official said Wednesday.

Minister of Finance Xiang Huaicheng told a national fiscal workshop which opened Wednesday in Beijing that China would readjust and optimize its use of proceeds from issuing treasury bonds next year.

He said ensuring the completion of large-scale construction projects would top the priority list next year. Other areas needing additional support included development of rural areas, economic restructuring, development of central and western parts of the country and ecological and environmental projects.

The government would strictly limit the number of newly started projects next year, except those involving the development of western China. The government would block progress of construction projects that duplicated capacity or far exceeded current need.

He said government would also tighten control over the proceeds from issuing treasury bonds next year, and coordinate the roles of its proactive fiscal policy and other macro-economic policies. At the same time, the government would increase employment and stimulate consumption while encouraging private and foreign investment.

Xiang said the government would take measures to avoid fiscal risks as it pursued the proactive fiscal policy to prop up economic growth.

Fiscal revenue sees double-digit growth

China's fiscal revenue increased 12.4 percent year-on-year to 1,648.81 billion yuan (200 billion US dollars) in the first 11 months of the year, Xiang said.

Xiang said the January-November fiscal revenue accounted for 91.5 percent of the target total of the year, 182 billion yuan more than in the same period of last year.

Xiang told a national fiscal work meeting that central revenue totaled 885.63 billion yuan during January to November, while local revenue totaled 763.18 billion yuan.

Xiang said fiscal expenditure reached 1,691.14 billion yuan in the first 11 months of the year, 240.7 billion yuan more than in the same period of last year.

He said the fiscal expenditure was 42.33 billion yuan more than the revenue in the period.

He said both central and local governments will well realize their budget for the year.

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