Beijing to enhance intensity of fiscal policy

BEIJING: China will enhance the intensity and effectiveness of its proactive fiscal policy this year and further improve fiscal and tax measures, Liu Kun, minister of finance, said at the China Development Forum 2023 that opened on Sunday.

Liu said China will continue to treat enterprises of all forms of ownership equally, including private and foreign-funded businesses, and consistently improve their development environment.

In a bid to promote high-quality development, China will enhance fiscal spending intensity.

The country will emphasise the role of local government special-purpose bonds in driving investment.

It will channel more financial resources toward lower levels of government, Liu said.

Efforts will also be made to improve preferential tax and fee policies and optimise the fiscal spending structure.

Strengthening fiscal policy’s coordination with monetary, industrial, technological and social policies, Liu said, will also be important.

Liu said support for micro, small and medium-sized enterprises, self-employed individuals, and industries in extreme difficulties will be intensified.

China’s newly implemented tax and fee cuts totalled 8.8 trillion yuan (US$1.29 trillion or RM5.7 trillion) between 2012 and 2021.

Liu expects that China’s fiscal policy will play a better role in helping promote stable economic growth and building modern industrial systems.

Pushing forward new urbanisation measures, improving people’s well-being and sharing fresh opportunities in Chinese modernisation with the world will also be an area of interest, added Liu. — China Daily/ANN