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China’s top finance minister vows more fiscal support ahead of Party Congress

SHANGHAI (CNA) – China’s top finance minister vowed to cut corporate tax rates more forcefully, strengthen targetted fiscal spending, and tighten fiscal discipline this year as part of efforts to stabilise the macro economy ahead of the Communist Party’s 20th Party Congress.

China’s Finance Department must raise its political standing and shoulder responsibility for the sustainable and healthy development of the economy, as well as maintaining social stability, Head of China’s Ministry of Finance Liu Kun said in an article published by the People’s Daily yesterday.

The key once-in-five-years party congress will be held in autumn this year, when Chinese President Xi Jinping is widely expected to be confirmed for a third five-year term.

China should allocate the proceeds from special-purchase local government bond sales to ensure the construction of key projects, Liu said.

He also called on party and government agencies to tighten their belts, so that more fiscal resources can be directed toward improving people’s livelihood and invigorating the economy.

China should also make fiscal spending early during the year, so as to bolster support to market entities, while stimulating consumption, Liu said in the article, adding the government will continue to control debt risks.

A man stands at a crossroads in Lujiazui financial district in Pudong, Shanghai. PHOTO: CNA

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