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 revitalize the market and ensure stable overall economic performance, officials said on Thursday.
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 that both central and local fiscal authorities will accelerate the issuance of local government special-purpose bonds in a steady and orderly manner. The scope of usage for such bonds will be appropriately 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 prioritized in receiving funds from these bonds to generate real economic activities at the earliest possible date.
–The Daily Mail-China Daily news exchange item
