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China's proactive fiscal policy stance "unchanged" despite lower deficit-to-GDP ratio target

Source: Xinhua| 2018-03-07 10:28:29|Editor: Xiang Bo
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(TWO SESSIONS)CHINA-BEIJING-NPC-PRESS CONFERENCE-FINANCE (CN)

Chinese Finance Minister Xiao Jie answers questions at a press conference on reform of fiscal and taxation system and financial work during the first session of the 13th National People's Congress in Beijing, capital of China, March 7, 2018. (Xinhua/Shen Hong)

BEIJING, March 7 (Xinhua) -- The proactive direction of China's fiscal policy remains the same for 2018 despite a lower deficit-to-GDP ratio target, Chinese finance minister said Wednesday.

The government deficit is projected to be 2.38 trillion yuan, generally the same with last year, while China will increase fiscal expenditure and local government special bonds, Minister Xiao Jie told a press conference.

China lowered its fiscal deficit target to 2.6 percent of GDP for 2018, down by 0.4 percentage points compared with 2017, the first drop since 2013.

The reduction in the deficit-to-GDP ratio is mainly due to steady economic growth and the stable foundation for an increase in revenue, which also keeps policy options open for macro regulation, Xiao said.

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