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Proactive fiscal policies improve economic quality and efficiency

Updated: Feb 16,2016 2:44 PM

Making full use of proactive fiscal policies was a focus of macroeconomic control in 2015. In the past year, China innovated macroeconomic control measures and enhanced pre-adjustment, fine adjustment and targeted regulation.

The deficit budget is 1.62 trillion yuan, 270 billion yuan more than in 2014. Deficit ratio rose from 2.1 percent in 2014 to 2.3 percent in 2015.

“It is an important reflection of proactive fiscal policies to increase outlay to make the economy operate within a reasonable range,” said Bai Jingming, vice-director of the Research Institute for Fiscal Science under the Ministry of Finance.

Statistics from the 2015 financial revenue and expenditure showed that the national general public budgetary expenditure reached 17.58 trillion yuan, up 15.8 percent from the previous year.

“In 2015, every level of the Ministry of Finance strengthened the administration of budget enforcement, promoted the overall plan of financial fund and optimized spending structure to ensure the implementation of policies,” said related people from the Ministry of Finance.

“One important feature of fiscal outlay in 2015 is the adjustment of structure optimization, especially in fields such as infrastructure construction and high-tech industries,” said Bai.

“Tax reduction” and “relieve burden for enterprises” were frequently mentioned at the State Council executive meetings in 2015.

In 2015, structural tax reduction and general fee reduction were promoted. A series of tax measures were released to support small and micro-sized enterprises and mass entrepreneurship and innovation.

It is estimated that 300 billion yuan was saved last year thanks to the implementation of beneficial policies.

“The feature of tax reduction policies promoted in 2015 is purposeful and targeted. For example, beneficial policies for small and micro-sized enterprises had an obvious effect on promoting employment; and reducing tax for some goods expanded domestic consumption,” said Bai.

In the past year, the State Council repeatedly made moves to revitalize stock assets. At an executive meeting in July last year, it was announced that 250 billion yuan in stock assets and illegal funds were collected and the State Council would invest 23.9 billion yuan, which was originally the budgetary stock assets in the construction of important projects.

In 2015, the country also greatly promoted public-private partnership (PPP) in public service fields and actively explored a development mode that suits China’s practical situation.

“The effect of PPP has just emerged - speed up reform, help promote the economy grow and make people’s living stable,” said Sun Xiaoxia, director of the Ministry of Finance.

According to a deployment of the Central Economic Work Conference, proactive fiscal policies will be continued and strengthened in 2016. “The proactive fiscal policies in 2016 should be more targeted to make our people have more benefits,” said Bai.