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China to roll out fiscal policies proactively to stabilise growth next year -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO. People crossing a bridge in Shanghai’s Pudong Financial District on August 11, 2014. China’s July fiscal expenditure increased 9.6 per cent from last year to 1.03 Trillion Yuan (99.7 Billion Pounds), according to the finance ministry.

BEIJING (Reuters), -China’s fiscal policy will be proactive next year, according to the finance ministry. It promised that it would have an impact on economic growth sooner than expected.

According to an announcement from the internal meeting of the finance ministry regarding fiscal policy 2022, the government will announce another round of tax- and fee reductions to help businesses make “appropriately ahead of time” infrastructure investments.

China issued 1.46 trillion Yuan ($229 Billion) in 2022 to meet the advance quota of local government special bonds. This was done to spur investment and help support the economy.

After a strong recovery from last year’s pandemic, the world’s second largest economy has been struggling. It now faces many challenges, including a deepening property market, persistent supply bottlenecks and tight COVID-19 restrictions that will impact consumer spending.

According to the finance ministry, fiscal spending will continue to be increased to stimulate growth. The central government will increase transfers to local authorities to help with necessary expenditures.

China is expected to take actions to limit increases in government-hidden debt in 2022 according to the meeting’s readout.

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