China's central government will consolidate the fiscal macro-control and implement prudent fiscal policy in 2006 to maintain the consistency and stability of the macro-economic policy, says the Ministry of Finance.

Specifically, the focus will be on investment, consumption and export. The government will adjust and optimize its investment mix. It will continue its efforts on using the treasury bonds and central fiscal budget more efficiently. Priorities will be given to rural construction, social undertaking on science, education, culture and health care, as well as social security, energy saving, ecology, environmental protection and the development of the country's western region.

New projects will be under strict control, especially those with high energy consumption, serious pollution and backward techniques. The government investment will play its role in adjusting the industrial structure by supporting the tax reform and strengthening the weak points in the social and economic development. Blind and replicated projects will be rejected.

Fiscal administrations at all levels are expected to work closely with other administrations concerned on the macro-economic policy to make sure that projects are deployed scientifically in line with the specified focuses. They are also supposed to strengthen supervision to use the fund more efficiently.

The income distribution will be adjusted and regulated to have the consumption contribute more to the economic growth.

The results of the reform on the export tax rebates system will be consolidated and expanded. As new problems in sharing the burden of tax rebates may emerge, provincial fiscal authorities should implement the State Council's instruction on this issue.

Collection of income tax will be stepped up according to the law. More efforts should be made on increasing revenues and reducing expenditure. Any lavish projects as a ladder of the officialdom will be prohibited.

By People's Daily Online