China will strengthen fiscal policy in the next five years, the country’s Finance Minister declared on Saturday in an interview with the Xinhua news agency.
Finance Minister Lan Foan said the country will strengthen counter-cyclical and trans-cyclical regulation and set the deficit-to-GDP ratio and the scale of public debt to adapt to changing conditions.
China will also make use of tools such as budget, taxes, state bonds and transfer payments, and provide sustained support for economic and social development, Lan said.
Internationally, the external environment is volatile and unstable, and the rivalry between major countries is increasingly intricate and intense, Lan said, without mentioning any specific country or the China’s trade conflict with the United States.
Support will be increased to areas such as modern industrial systemscience and technology, education and social security, said the minister.
The tax subsidies will be used to expand consumption of goods and services, Lan said.
China will also make coordinated use of special government bonds local and special treasury bonds in the very long term, while optimizing the direction of public investment.
