China will continue to pursue a proactive fiscal policy next year. According to Finance Minister Xiang Huaicheng, this means the country will continue to issue special treasurer bonds, as it did in the past four years, to fund infrastructural projects and generate demand to invigorate the economy.
However, Xiang added his ministry will guard against inputs into unnecessary projects.
The remarks were made on Tuesday as he addressed the finance ministry and local finance bureau officials on next year's fiscal work at the National Finance Meeting in Beijing.
Other major economic officials have said projects launched in previous years, as well as this year, will be the focus of government investments.
He said the ministry will also work to stabilize the current taxation system but also urged his colleagues to review and adjust fiscal and tax regulations and policies according to the rules of the World Trade Organization.
Xiang also said the country will improve its accounting system to accelerate the system's integration with international norms.
The minister said the government's financial condition is favorable.
During the first 11 months, fiscal incomes grew 23.1 percent compared with the same period last year to reach 1.47 trillion yuan (US$177 billion).
Expenditures during the January to November period totaled 1.45 trillion yuan (US$175 billion), up 21.8 percent.
The government's actual deficit for the whole year is expected to be smaller than budgeted, he concluded.
Xiang attributed the rapid growth of fiscal revenue to the proper economic policy that the Chinese Government adopted to maintain a stable growth. In the same time, he said the government has stepped up efforts to plug loopholes in tax collection.
Xiang said the central government will also increase payment to less-developed areas in the central and western parts of the country next year. It already allocated 87.3 billion yuan (US$10.5 billion) to local governments mainly for the payment of wages of government employees this year.
(China Daily December 19, 2001)
