Fast growth in fiscal spending to boost economy

BEIJING - China will see a faster-growing fiscal expenditure next year, together with moderate scales of fiscal deficit and public debt, to prompt a steady development, Vice-Premier Li Keqiang said on Tuesday.

Li said more priorities should be given to the areas related to improving people's livelihood, so as to boost the domestic demand and consumption.

And the country will also strive to maintain a proper pace of investment and foreign trade growth.

"The positive fiscal policies in the past year allowed a wide margin in the country's policy adjustment but with more global uncertainties ahead next year, the policies need to be more targeted, flexible and forward looking," Li said at a national financial meeting in Beijing.

Li was speaking at the conclusion of the Ministry of Finance's annual working conference, which formulated the details of the fiscal tools that will play a major role in China's economic agenda for next year.

Finance Minister Xie Xuren reiterated at the conference a series of tax cuts the ministry will adopt next year, including lower tariffs on certain imports, value-added tax replacing sales tax, and tax preference toward smaller businesses.

A main part of the plan is the hope of easing the tax burden to boost the development of service sectors and release purchasing power, Li said.