This policy focuses more on efficiency in the allocation and use of tax funds
Liu Kun, Chinese finance minister, has promised more daring and effective measures to implement the proactive fiscal policy of the Asian country.
Chinese fiscal policy, from this year, is aiming for a more proactive action, resulting more bold in terms of taxes and cuts. This policy, in particular, focuses more on efficiency in the allocation and use of tax funds, said Liu himself.
The central government has decided to cut spending to increase transfers to local governments
“China will counter the uncertainties in the external environment with certainties in its policy,” Liu said. The ministry he represents, in fact, will support the fight against financial risks and focus on the risk of hidden debt in local governments.
“The proactive fiscal policy will boost consumption and promote effective investments,” said Liu, adding that central budget funds will support the development of transport infrastructure, energy, information networks, logistics and many other areas.
As a decision, the central government has decided to cut spending to increase transfers to local governments. More than 7.5 trillion yuan (about $ 1.1 trillion) of transfers are expected as early as 2019; a record compared to the figures of past years.
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