The first annual forum on China's fiscal reform opened in
Beijing on Tuesday, aiming to address the ways in which the reforms
can be made most beneficial to the poor.
"China has made enormous progress in economic and social
development in recent decades," said Khalid Malik, UN Resident
Coordinator and UNDP Resident Representative in China.
"However, the depth and coverage of China's fiscal reform
progress have been uneven, and there is scope for strengthening the
links between fiscal reforms and poverty reduction goals," said
Malik.
"From growth-orientation to promoting greater equity, fiscal
policy must play a central role in this shift," he stressed.
As the country registered robust economic growth of 10.7 percent
in the first three quarters, the Chinese central government will
adopt a more prudent fiscal policy to restrain government
expenditure, control deficits and increase revenue, according to
the Ministry of Finance.
"Taxation, as an important instrument of macro-economic
management, should and will play a more active role in balancing
urban and rural development, regional equalization, reducing
unemployment and environmental protection," said Wang Li, deputy
director of the State Administration of Texation (SAT).
China has set aside 14.2 billion yuan (US$1.804 billion) in
subsidies to arable farmers this year, with 14.18 billion yuan
(US$1.802 billion) already allocated by October 20, according to
official data.
Another 23.5 billion yuan (US$20986 billion) was used to
subsidize county and township governments in an effort to improve
their financial capability.
The forum was set up as part of a US$10.3-million project,
established by the Chinese government and the UNDP, with the aim of
implementing national fiscal policies more effectively at local
levels.
(Xinhua News Agency November 15, 2006)
