MNI BRIEF: China To Enhance Fiscal Support Via CGB Issue
China will strengthen fiscal efforts to boost investment and consumption to support economic recovery, officials of Ministry of Finance told reporters on Thursday in a briefing.
The authorities will maintain an appropriate fiscal expenditure and allocate effectively funds raised by government bonds to bolster investment. They will also increase transfer payments to local governments to ensure expenditure on basic livelihood, medical care and education, the officials said noting preferential fiscal measures, such as fiscal subsidies, interest rate subsidies on loans, and tax incentives, will be used to support key sectors including high technology, upgraded industrial chains and manufacturing. (See MNI: China Stimulus To Keep 2024 Growth Over 5%, Advisors Say)
The ministry will continue to carry out the structural tax and fee reduction this year, with the cut exceeding CNY2.2 trillion in 2023, it said.