China working hard to create stable economic foundation

China will work to better coordinate its fiscal revenue and spending, ensure the intensity of government-powered investment through special local government bonds, and keep scaling up general transfer payments to local governments next year, to create an enabling and solid foundation for economic performance, Xu Hongcai, vice-minister of finance, said on Saturday.

Xu made the remarks when attending a seminar hosted by China Center for International Economic Exchanges. China's Central Economic Work Conference concluded on Friday and said the country's fiscal policy will be stepped up and become more efficient, while maintaining the necessary intensity of fiscal spending.

Xu said such a fiscal policy will be seen through several dimensions. The country will work to better coordinate fiscal revenue, fiscal deficit and special bond, and ensure the allocation of fiscal funds goes to primary-government levels. At the same time, the deficit-to-GDP ratio and the scale of special local government bonds will be set properly to ensure that the intensity from government-backed investments will not go down. He also said that the general transfer payments to local governments will be expanded next year.

Noting that smaller businesses will still be faced with notable challenges next year, Xu said that the current tax and fee cut policies, as well as tax deferral and refund policies, are likely to be extended and optimized in light of actual conditions next year, so as to lend full support to the country's small and micro businesses and help them with innovation and upgrading.

He also said efforts will be made substantially to make the country's fiscal capacity more sustainable.