China's fiscal deficit target this year is proactive and prudent, Finance Minister Xiao Jie said Tuesday.
Xiao made the remarks at a press conference on the sidelines of the annual parliamentary session.[Special coverage]
Fiscal deficit this year is projected to be 3 percent of GDP, or 2.38 trillion yuan (about 345 billion U.S. dollars),according to a government work report delivered by Premier Li Keqiang on Sunday.
The deficit-to-GDP ratio will stay unchanged from last year, with the fiscal deficit figure increasing by 200 billion yuan to meet the demands for tax cuts and expenditure in key areas such as supply-side structural reform, according to the minister.
"China's government debt ratio is relatively low compared with other countries, which leaves enough leeway for further adjustment," he said, adding that the decision on further fiscal deficit expansion depends on the future demand and debt-paying ability of the government.
"The fundamentals for China's long-term growth have not changed," he said, voicing confidence that the country's expanding economy will serve as the basic support for the government solvency.
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China punishes NEV manufacturers for fraudulent subsidy claims
China has punished a number of new-energy vehicle (NEV) manufacturers for fraudulently claiming subsidies, Finance Minister Xiao Jie said Tuesday.
"The combined amount of retrieved subsidies and penalties imposed on companies involved is about 2.3 billion yuan (about 333.5 million U.S. dollars)," Xiao told a press conference on the sidelines of the national legislature annual session.
China debt-to-GDP ratio at 36.7 pct, risks under control: minister
China's finance minister on Tuesday reiterated confidence in controlling debt risks despite some irregularities in local governments' financing activities.
"China's government debt risks are generally within control," Finance Minister Xiao Jie said at a press conference on the sidelines of the annual parliamentary session.
