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China Continues to Follow Pro-active Fiscal Policy
The Chinese Government will continue to follow a pro-active fiscal policy to offset the impact of inadequate domestic demand and other factors, said an article in the 26th issue of the weekly news magazine "Outlook", which will hit the newsstand Monday.
The central authorities have been following a pro-active fiscal policy over the past two years as well as adopting a number of measures.
The weekly listed four existing conditions for further carrying out the pro-active policy.
-- The inadequate domestic demand and low economic growth rate calls for the pro-active policy.
-- In 1999, the financial deficits of the Central Government accounted for 2.19 percent of the GDP, lower than the internationally recognized bottom line of three percent.
-- In 1997, debts accounted for only 8.1 percent of GDP in China, while the figure was 49.8 percent in the United States;
-- Surplus of products and materials has also provided the condition for expansion of financial expenditure.
Appropriate policies on fiscal revenue, currency and financial supervision should be adopted to facilitate the pro-active fiscal policy, the weekly suggests.
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