Fiscal Policy Should Aim To Activate Economic Vitality

Fiscal policy should focus on activating the role of the market, which includes improving preferential tax policies to ease companies’ difficulty in a more targeted manner and supporting private investment to better coordinate with government investment, wrote Yang Zhiyong, director at Finance and Taxation Research Center, Chinese Academy of Social Sciences in a commentary. Using large-scale expansion of government-led investment to maintain the size of the balance sheet does not make much sense and it may also lead to serious inflation and further deterioration of the economy. Aimless investment will only bring about a waste of fiscal funds, Yang said. (Source: 21st Century Business Herald)