China‘s finance ministry said on Tuesday that it will step up fiscal expenditure this year and implement larger tax and fee cuts.
At the same time, the government said it will reduce its general expenditures by more than 5 percent, the finance ministry said in a statement provided before a news conference.
The statement didn’t specify areas where expenditure would be reduced.
The central bank, in a separate statement on Tuesday, said it will maintain prudent monetary policy, keeping it neither too tight nor too loose, and strengthen the counter-cyclical adjustments.
Monetary policy will be made more forward-looking, flexible and targeted, said the bank.
It comes as the country’s state planner said on Tuesday it will aim to achieve “a good start” in the first quarter for the economy, signalling more supportive measures to come as the world’s second-biggest economy slows further.
China will strengthen monitoring of its economic situation and improve its “reserve” of economic policies, the National Development and Reform Commission (NDRC) said in a statement.
Premier Li Keqiang said China had achieved its key economic targets last year, which were “hard-worn,” and will seek a strong start to the economy in the first quarter to establish conditions helpful to achieving this year’s goals, according to state television on Monday.
Sources told Reuters last week that Beijing was planning to lower its growth target to 6-6.5 percent this year after an expected 6.6 percent in 2018, the slowest pace in 28 years.
— CNBC contributed to this report.
