Finance minister: neutral fiscal policy a proper choice

Chinese Finance Minister Jin Renqing said Thursday in Shanghai that China would adjust economic policies according to the general conditions of the macro-economy and it's rational for China to adopt a neutral fiscal policy.

Jin made the remark in reply to a question at the closing press conference of the Global Conference on Scaling Up Poverty Reduction.

He said China's current economy is "generally good" and excessive investment in some sectors and some regions does exist which has posed a potential overheating threat to the economy.

However, the finance minister pointed out that, in the sectors of agriculture, energy, transportation, hi-tech and consumption service, investment is still badly needed.

"We should adopt relevant policies in accord with actual economic conditions," Jin said, stressing that the enforcement of the policies should not be abrupt.

China embarked on a proactive fiscal policy in 1998 to offset the negative impact of the Asian financial crisis, Jin said, noting the policy tools have taken positive effects and China therefore shook off the threat of deflation.

Jin said that China should be cautious of a potential economic inflation, and, as an important approach to direct the economic growth, the proactive fiscal policy would be replaced by a neutralone.

Source: Xinhua