Centralised Fiscal Power and Expenditure To Ease Local Burden

China will further centralise fiscal power and increase expenditure of central government to reduce burdens on local authorities who will likely obtain more tax sources to deal with fiscal difficulties, including localisation of consumption taxes, China Securities Journal reported on Friday citing analysts. The Party’s Third Plenum announced reforms to the fiscal, taxation and the financial system on Thursday. Analysts pointed out the supervision of the financial sector will be further strengthened to prevent risks. Monetary policy will shift focus to interest-rate control from the previous liquidity and credit management, while the capital market will be boosted to enhance the role of supporting the real economy, they said.