Li Yining, an economist from the Peking University, said consumption should be spurred to fuel the growth momentum in the future as the current economic recovery was advanced mainly by investment. He suggested the proactive policy be further carried out to stimulate consumption and private investment in the following period.
Xie said in the second half the ministry will continue its policy of tax cuts to increase investment from enterprises and consumption.
The ministry also pledged to increase spending on people's livelihood.Investment in agriculture, social security, medical care, education, science and environmental protection climbed 33.9 percent from a year earlier to 1.48 trillion yuan, according the the ministry.
Analysts said the macroeconomic polices should also aim to adjust economic structure for the long term and to create new growth points.
Jia Kang, president of the Institute of Fiscal Science, Ministry of Finance, said the government resolves to step up adjustment of economic structure as the economy is back on track for recovery.
Xie said the fiscal policy in the second will support innovation and energy conservation and emission reduction to sustain the economic growth.
On July 21, the ministry started a pilot program to subsidize 50 percent of investment for solar power projects, a move to boost the solar industry as a new growth point for the country's economy.
Xie also urged to strengthen supervision over fiscal management and improve information transparency in the second half as fiscal expenditure in the second half faced great pressure. Wen Jiabao also described the country's fiscal situation as "severe."
The ministry said the country's fiscal revenue in the first six months fell 2.4 percent from a year ago to about 3.4 trillion yuan, while its fiscal expenditure rose 26.3 percent to 2.89 trillion yuan.
(Xinhua News Agency July 24, 2009)
