Economic recovery package gets more impetus

BEIJING: China will step up its efforts on both the fiscal and monetary fronts to expedite delivery of its freshly unveiled economic package for recovery, to revitalise the market and ensure stable overall economic performance, officials said.

Ou Wenhan, assistant minister of finance, confirmed at a news briefing on Thursday that the Finance Ministry will promptly redouble fiscal policy intensity by expanding tax credit refunds, expediting issuance of local government special-purpose bonds, boosting consumption and supporting people’s essential needs.

“Among the 33 recovery measures recently decided by the State Council, 24 are fiscal measures,” Ou said, referring to a package of 33 clearly targeted measures issued by China’s Cabinet this week, covering six major aspects of economic fundamentals.

Specifically, Ou said the scope of usage for such bonds will be widened to cover new infrastructure and new energy projects.

Subnational fiscal authorities should ensure that the funds released from these bonds are distributed to projects in a timely manner. Projects with advanced early-stage preparations or which are already undergoing construction shall be prioritised in receiving funds from these bonds to generate real economic activities at the earliest possible date.

All such bonds will be issued by the end of June and are due to be utilised by the end of August. — China Daily/ANN