””””SHANGHAI, May 9 (Xinhuanet) -- China will take active
measures to regulate the current financial policies, deepen fiscal reform,
improve the government's fiscal performance and expedite the establishment of a
public financial system, in a bid to achieve sustainable financial growth.
””””Minister of Finance Xiang Huaicheng made the pledge here Thursday while
addressing the "PRC-Day" Seminar of the 35th Asian Development Bank (ADB),
saying that China plans to ensure stable economic growth by implementing proper
fiscal policies.
””””This year, he noted, the Chinese government will continue to issue
long-term construction treasury bonds worth 150 billion yuan(some 18 billion
U.S. dollars) to be used in building key nationalschemes like the western area
development projects and the technological upgrading of major industrial
enterprises and businesses.
””””China issued long-term construction bonds worth 510 billion yuan (61.4
billion U.S. dollars) over the past four years, and theratio of financial
deficit and outstanding debt to the country's total gross domestic product (GDP)
in 2001 was 2.7 percent and 16.3 percent, respectively, official statistics
indicate.
””””"Compared with the relevant international financial levels, these figures
are still within safety limits," Xiang said, expressing the belief that China is
capable of coping with more financial risks thanks to its consistent economic
growth.
””””China has taken measures to guard against fiscal risks, such asadjusting
the time frame, within which treasury bonds mature whilecutting down the cost in
raising the finances, unifying the administration of the government's internal
and external debts, and improving the management and supervision of treasury
bonds, hesaid.
””””Moreover, China has a wealth of experience in dealing with deflation and is
fully capable of initiating preventive measures against it as well as easing
fiscal risks because of its robust economy, according to the minister.
””””As well as fulfilling its WTO commitments, China will thoroughly reform the
current taxation preferential treatment andfiscal subsidy policies to increase
transparency in the financial area in line with the conventional international
practices, Xiang said. Enditem
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