Fiscal, taxation policies need improvement

China's new finance minister has given his first public speech and called for more reforms to bolster the country's inclusive growth. Speaking at a forum, Lou Jiwei highlights the need to improve fiscal and taxation systems.

Lou Jiwei, in his first public speech after being named China's top finance official, says the country should offer more opportunities to individuals to realize inclusive growth. That in turn boosts fiscal revenues for the government to re-distribute. He also warns against raising high fiscal revenues and lifting government spending to support public welfare, calling them "wrong ways".

Lou Jiwei said, "It is possible for us to slide down the wrong ways. The right way is an arduous way of reform, and a way toward inclusive growth. China is making an effort to avoiding the wrong ways and sticking to the right way."

The finance minister was also frank on the need to improve current fiscal and taxation policies.

Lou Jiwei said, "As we can see, many public welfare policies are imperfect and lack checks. We should help the poor, not the lazy. Improving the fiscal and taxation systems requires support for related reforms and a focus on setting up a mechanism, so as to promote inclusiveness."

Lou admits he feels the pressure of the 1.2 trillion yuan fiscal deficit, and vows to adopt policies to curb local governments' debt expansion. Lou also says the government will gradually hike dividend requirements for state owned enterprises to boost public finances.