The increase in the government's income will allow it to
function better, says an editorial in China Economic
Weekly. The following is an excerpt:
The Ministry of Finance said the government's income from
January to November amounted to 4.82 trillion yuan ($642.6
billion), a 33.5 percent growth year on year. The figure for the
year will definitely exceed 5 trillion yuan.
The fiscal income of China has seen double-digit annual growth
since 2002. It has been driven by the continuous economic boom.
With more financial resources at hand, the government could
offer more public services. It could play a stronger role to ensure
the economy grows in a sound manner. The authorities have
introduced a series of policies to cut emissions, promote energy
saving and protect the environment, all of which will have a
positive effect on the economy.
The government also boosted its help to the less developed areas
and to low-income groups. The expenditure on social welfare,
education and other key areas has been greatly increased and will
continue to be increased as long as the State coffer stays
full.
However, negative influences will also emerge if the
government's income grows disproportionately with the development
of other social departments.
So it is necessary for the government to consider using public
funds more efficiently and further reduce the financial burden of
tax payers when time is right.
(China Daily December 27, 2007)