BEIJING: China’s proactive fiscal policy will be implemented in a more targeted and effective way this year to keep the economy running within a reasonable range, Finance Minister Liu Kun said.
In 2021, the proactive fiscal policy will be “more sustainable” in terms of expenditure scale and policy strength to stabilize growth while preventing risks. Liu made these observations at a national fiscal work conference, report agencies.The overall government leverage ratio will stay at a stable level to leave policy space for combating future risks and challenges, according to Liu.
The minister noted that China would maintain policy continuity and push forward tax and fee reductions.
Science and technology will be the key area of the country’s fiscal expenditure in 2021 to support development of key and core technologies, enhance national strategic science and technology strength, help upgrade industrial and supply chains and stimulate innovative vitality of enterprises.
Priorities will include improving investment structures, encouraging consumer spending, and facilitating new-type people-centered urbanization, said Liu.
Efforts will be made to guarantee the people’s well-being, improve policy support for agriculture, rural areas and farmers, as well as for rural vitalization, Liu said.
Investment will be made in pollution control to support green development, he said.Liu also pledged efforts to fend off risks in key areas, deepen reform of the taxation system, and enhance fiscal management and supervision.
China will continue to implement proactive fiscal policies and prudent monetary policies in 2021 amid efforts to maintain the necessary support for economic recovery, according to the annual Central Economic Work Conference last month.