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China proposes prudent fiscal policy for 2005
(Xinhua)
Updated: 2005-03-05 11:49

China is to adopt a prudent fiscal policy in 2005 and increase treasury support to its vast rural areas, according to a report on government budget submitted Saturday to members of the parliament, the National People's Congress (NPC).

The report, for the first time not read out to the annual parliament session beginning Saturday, says the government proposes to exercise a prudent fiscal policy following a seven-year pro-active policy.

The government plans to arrange a fiscal deficit of 300 billionyuan for the central government, down 19.83 billion yuan from last year, and long-term treasury bonds of 80 billion yuan, down 30 billion yuan.

The fiscal revenue of the central government is expected to grow 10.5 percent, and expenditure to grow 7.6 percent.

More funds and preferential policies will be available to support the termination of the agricultural tax, grain production and rural construction.

The central government will offer fiscal support for the reformof state-owned enterprises and reform of the taxation system. It will also support small and medium-sized companies to create an environment for fair competition.

Defense spending will be increased by 12.6 percent, one percentage point higher than last year.

In 2004, China's national fiscal revenue grew by 21.4 percent from a year ago, and expenditure rose by 15.1 percent, leaving a deficit of 200.491 billion yuan. (one US dollar equals to about 8.27 yuan).



 
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