New measures target economic growth points amid slowdown

Up to 10 percent of the fund can now be invested in trust loans, increasing from 5 percent previously.

Dong Dengxin, head of the finance and securities research institute at Wuhan University of Science and Technology, said the measures will help minimize the default risks of local government debt, stabilize economic growth and promote economic restructuring.

The State Council also urged better use of surplus budgetary funds, calling for local governments to allocate it to key sectors in particular.

Observers fear that the ongoing anti-corruption campaign has made local officials excessively cautious about being seen to be spending money. The money budgeted to them by the central government is often left unspent.

So that economic expansion can be realized without adding taxes or government debts, fiscal policies will now weigh mainly on putting surplus budgetary funds to use instead of depending on capital injections, said Su Jian, associate director of the economics department at Peking University.

China plans to spend more fiscal funds by raising its fiscal deficit in 2015 to 1.62 trillion yuan, 2.3 percent of GDP, up from 2.1 percent in 2014.

The central government should coordinate the use of fiscal funds to clamp down on local governments' "administrative omissions" under the backdrop of the anti-corruption campaign, said Su.

The economist also lauded the announcement about supporting e-commerce. "Developing e-commerce aims to activate the economy by inciting private consumption as well as investment in this area. The supply-side policies include a tax cut, simplifying administrative procedures and encouraging entrepreneurship," said Su, adding that such policies will help cultivate new growth points without increasing local debt.

The turnover of Chinese e-commerce is estimated to have surged 25 percent year on year to 13 trillion yuan in 2014, so it is unsurprisingly prized by the government.

"The Internet is a fresh tool to advance mass entrepreneurship and innovation." On one hand, e-commerce creates job opportunities through integrating the Internet with primary, secondary and tertiary industries; on the other, it is easy to start e-businesses because the thresholds are low compared with the brick and mortar businesses, said Zhao Ping, a researcher with the Ministry of Commerce.