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China to stick to proactive fiscal policy

(Xinhua)
Updated: 2009-07-23 22:46

BEIJING: China will continue its proactive policy and reform its economic structure in the second half of this year to boost economic growth, Finance Minister Xie Xuren said Thursday.

Xie told local financial bureaus at a conference in Beijing on Thursday that the proactive policies, which included increased investment from government, tax cuts and subsidies to low income families, had taken effect in stimulating a recovery of the national economy.

Related readings:  IMF welcomes China's substantial fiscal support to economy  Fiscal revenue up for second straight month  VP: China to continue active fiscal policy  Premier urges adhering to proactive fiscal policy  China to continue active fiscal policy

By the end of June, 591.5 billion yuan (US$86.6 billion) out of the total 1.18 trillion yuan investment the central government promised in November had been allocated, which boosted a 33.5 percent jump of fixed-asset investment in the first half of this year. It was the highest level in the last five years.

The ministry said the country's fiscal revenue in the first six months fell 2.4 percent from a year ago to about 3.4 trillion yuan, while its fiscal expenditure rose 26.3 percent to 2.89 trillion yuan.

The government increased spending on people's livelihood. Investment in agriculture, social security, medical care, education, science and environmental protection climbed 33.9 percent from a year earlier to 1.48 trillion yuan.