The first annual forum on China's fiscal reform opened in
Beijing yesterday with the aim of addressing the ways in which the
reforms can be made most beneficial to the poor.
"China has made enormous progress in economic and social
development in recent decades," said Khalid Malik, UN resident
coordinator and UN Development Program (UNDP)?resident
representative in China.
"However, the depth and coverage of China's fiscal reform
progress have been uneven and there's scope for strengthening the
links between fiscal reforms and poverty reduction goals," said
Malik.
"From growth-orientation to promoting greater equity, fiscal
policy must play a central role in this shift," he stressed.
As?China registered robust economic growth of 10.7 percent
in the first three quarters, the central government would adopt a
more prudent fiscal policy to restrain government expenditure,
control deficits and increase revenue, according to the Ministry of
Finance.
"Taxation, as an important instrument of macro-economic
management, should and will play a more active role in balancing
urban and rural development, regional equalization, reducing
unemployment and environmental protection," said Wang Li, deputy
director of the State Administration of Taxation.
China has set aside 14.2 billion yuan (US$1.8 billion)?in
subsidies for arable farmers this year with 14.18 billion yuan
already allocated by October 20, according to official data.
Another 23.5 billion yuan (US$2.99 billion)?was used to
subsidize county and township governments in an effort to improve
their financial viability. ?
The forum was held as part of a US$10.3 million project,
established by the Chinese government and the UNDP, with the aim of
implementing national fiscal policies more effectively at local
levels.
(Xinhua News Agency November 15, 2006)