Xie Xuren, Minister of Finance (JIANG XIAOYING)
In response to the international financial crisis, the Chinese Government put in place a proactive fiscal policy and moderately easy monetary policy, and further improved its stimulus packages, said Xie Xuren, Minister of Finance. Over the past year, fiscal departments at all levels carefully implemented the proactive fiscal policy by enhancing public investments and spurring domestic consumption.
The government pressed ahead with structural tax reductions as a commitment to helping with investments of enterprises and residential consumptions. Meanwhile, vigorous efforts were made to improve people's livelihood, including education, health insurance, affordable houses and environmental protection, Xie said.
These efforts have obviously accelerated rebalancing of the economy and helped ensure a stable and healthy growth prospect, added Xie.
Looking ahead, China will have a much better economic environment this year than in 2009, but the foundation of recovery remains unsteady. So it is necessary to maintain continuity and stability of the policies, said Xie.
This year's 1.05-trillion-yuan ($154 billion) deficit will be comparable to 2.8 percent of estimated GDP in 2010, a tolerable and basically safe level of debt. But it is still needed to strengthen management over local governments' debts and fend off possible fiscal risks. Efforts are needed to streamline the financing vehicles of local governments to promote sustainable development of local economies, said Xie.
Supportive measures are also in place for hi-tech industries, environmentally friendly businesses and the service sector, added Xie.