China stresses implementation of upbeat fiscal policies, mitigation of local government debt risks at key meeting
Published: Aug 28, 2023 11:04 PM
Ministry of Finance Photo: VCG

Ministry of Finance Photo: VCG


China's Finance Minister Liu Kun asked for efforts to further implement a proactive fiscal policy, support the real economy, and prevent and resolve local government debt risks at a key meeting in Beijing on Monday.

Liu proposed that as the next step, there should be a focus on increasing efficiency, implementing a proactive fiscal policy, supporting a stronger and better real economy, effectively protecting and improving people's livelihoods, and preventing and resolving local government debt risks, as well as further tightening financial discipline, according to a report from the Xinhua News Agency. 

The remarks were made at the first plenary meeting of the Fifth Session of the Standing Committee of the 14th National People's Congress, during which Liu introduced the implementation of this year's government budget.

Liu said that since the beginning of this year, various tasks of fiscal reform and development have been steadily advanced, fiscal operations have been generally stable, and the budget execution has been relatively good. 

The session's agenda includes reviewing a draft revision to the Law on Administrative Reconsideration, a draft foreign state immunities law, a draft amendment to the Civil Procedure Law, a draft revision to the Company Law and a draft value-added tax law, Xinhua reported.

Lawmakers will also review a draft preschool education law, a draft academic degrees law and a draft revision to the Law on Penalties for Administration of Public Security, among other reports and bills. 

Liu's remarks come as the world's second-largest economy launches measures to invigorate the domestic economy. 

In a fresh and significant move, China cut the stamp duty on stock trading by half on Monday, triggering a rally in the market, and this is expected to generate an immediate boost to market confidence as challenges mount.  

The Ministry of Finance and the State Administration of Taxation announced on Monday the continuation of a series of individual income tax breaks to reduce tax pressure and increase personal incomes.

There are already signs of improving as policy support kicks in. For instance, Chinese industrial enterprises reported narrowed profit declines in July compared with June, indicating the overall manufacturing sector is steadily improving with the country's sustained efforts to shore up an economic recovery, the National Bureau of Statistics said on Sunday. 

Global Times