Moderate expansion of fiscal policy can ensure stable economic development, Bian Yongzu, a researcher at the Chongyang Institute for Financial Studies, Renmin University of China told news site Chinatoday.com.cn.
As a whole, China’s economy has maintained relatively stable development in terms of investment, consumption, import and export, employment and individual income, according to the 2018 Central Economic Working Conference.
However, China’s economy also faced downward pressure in 2018. For instance, data from the National Bureau of Statistics showed GDP growth slowed to 6.5 percent in the third quarter, lower than the first two quarters. Data also shows that total sales of consumer goods and industrial production are not optimistic.
Bian said that an appropriate expansion of fiscal policy would be conducive to the country’s economy.
First, the country should make large scale reductions in fees and taxes. Such reductions would lower costs for businesses, promote upgrading and help further enhance domestic demand and boost consumer confidence. In addition, we should increase the scale of local debt and strengthen efforts to make up for the shortcomings of infrastructure, said Bian.
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