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China Sets Key Areas of Proactive Fiscal Policy
China will continue its proactive fiscal policy in 2003 by concentrating resources on major projects, rural development, economic restructuring and environmental protection.

Minister of Finance Xiang Huaicheng told Wednesday that China would readjust and optimize its use of proceeds from issuing treasury bonds next year.

He said ensuring the completion of large-scale construction projects would top the priority list next year. Other areas needing additional support included development of rural areas, economic restructuring, development of central and western parts of the country and ecological and environmental projects.

The government would strictly limit the number of newly started projects next year, except those involving the development of western China. The government would block progress of construction projects that duplicated capacity or far exceeded current need.

He said government would also tighten control over the proceeds from issuing treasury bonds next year, and coordinate the roles of its proactive fiscal policy and other macro-economic policies. At the same time, the government would increase employment and stimulate consumption while encouraging private and foreign investment.

Xiang said the government would take measures to avoid fiscal risks as it pursued the proactive fiscal policy to prop up economic growth.

(Xinhua News Agency December 26, 2002)

Fiscal Revenue Up 12.4 Percent: Finance Minister
Proactive Fiscal Policies to Continue
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