China’s state-media says that fiscal policy will become more active in the second half of 2018 as part of efforts to maintain the country’s economic growth momentum.
According to the state-owned China Economic Net the second half of 2018 will see “more active fiscal policy, with room for increased fiscal expenditures,” while “tax and fee reduction policies will continue to be unveiled.”
The latest data from the Ministry of Finance indicates that in the first half of 2018 China’s standard public budgetary expenditures saw accelerated year-on-year growth of 7.84% to hit 11.1592 trillion yuan in total.
Education expenditures in the first half were 1.64 trillion yuan, for YoY growth of 6.9%; science and technology expenditures were 364.4 billion yuan, for YoY growth of 25.4%, while culture, physical education and media expenditures were 134.6 billion yuan, for YoY growth of 5.8%.
Social welfare and employment expenditures were 1.6482 trillion yuan, for YoY growth of 11.3%, healthcare and family planning expenditures were 947.2 billion yuan, for YoY growth of 9.8%, while environmental protection and energy conservation expenditures were 262.7%, for YoY growth of 16.3%.
“Since the start of this year the Ministry of Finance has effectively implemented active fiscal policy, with multiple measures adopted simultaneously to accelerate the progress of budgetary execution, expand investment in key areas and links, and raise welfare and improve living standards for the people,” said Chen Xinhua (陈新华), vice-head of MOF’s budgetary department.
Yuan Haiyao (袁海尧) from MOF’s taxation department said that in the second half the authority would continue to “effectively implement tax and fee reduction policies that have already been implemented…[and] further research and unveil other policy measures to optimise the commercial environment, and reduce the burden on enterprises.”