MNI POLICY: Premier Li Warns Against Misusing Stimulus Funds

     BEIJING (MNI) - Chinese Premier Li Keqiang has warned that this year's

larger fiscal deficit and the CNY2 trillion issuance of special treasury bonds

must be used for their intended purposes, which is to help businesses and the

people recover from the pandemic disruptions.

     Authorities, he said, should seek to have the policies implemented quickly.

     Regional governments must strictly monitor the use of funds and auditors

will be asked to conduct specific checks, Li said in a statement posted on the

government website following a Wednesday meeting with top officials including

anti-corruption agencies.

     Li also warned local authorities against illegally raising fees for

businesses and market participants as a way of dealing with fiscal shortages,

and gave the example of raising social security contributions.

     Reductions in business fees and taxes will total CNY2.5 trillion this year,

and financial lenders are also committed to reducing their profits by CNY1.5

trillion in an effort to lower borrowing costs for doing business, Li's

statement said. 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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