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     BEIJING (MNI) - China's Ministry of Finance mostly completed the issuance
of additional local government bonds at the end of September, which helps boost
effective investment, Hao Lei, a deputy director of budget department at the
finance ministry, told reporters on Thursday. 
     Here are the major takeaways from a briefing by three officials of the
     - The LGB issuance this year was faster-paced with longer maturities and
lower costs. As of the end of September, all CNY3.08 trillion worth of LGB had
been issued. The average issuing rate was 3.42% relative to 3.87% last year.
About 40% is allocated to projects in-progress. Some local governments have used
proceeds from the special-purpose bonds as project capital, Hao said.
     - The central government this year gave CNY7.54 trillion transfer payments
to local governments, the highest in recent years, aiming to ease fiscal
pressure. It also urged local authorities to monitor and control general
expenditure and strive to cut by more than 10%, Hao said. 
     - China is planning the drafting of a consumption tax law to help expand
local revenue sources and enhance local governments' capacity for bigger tax and
fee cut, said Xu Guoqiao, an official with the taxation department. 
     - China's full-year tax and fee cuts will be larger than the targeted CNY2
trillion, with tax burdens on industries such as manufacturing significantly
lower, Xu said. 
     - Tax and fee reductions have had an good effect. The ministry will
continue to pay attention to tax changes in various industries and promote these
reduction policies, Xu said. 
     - Tax revenues have declined since May. The government is actively
increasing non-tax sources to meet the shortfall. Remissions of profits by
state-owed financial institutions and enterprises have increased, helping boost
non-tax revenues, said Liu Jinyun, the director of the payment center of the
National Treasury. 
     - Economy in Q4 continues to run within reasonable range, Liu said. The
growth of national revenue is expected to pick up and reach the targeted 5.1%,
he said.
--MNI Beijing Bureau; +86 10 8532 5998; email:
--MNI Beijing Bureau; +86 (10) 8532 5998; email:
[TOPICS: M$A$$$,M$Q$$$,MBQ$$$,MGQ$$$]

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