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MOF to Optimize Investment, Consumption Structure

During the 11th Five-Year Program period (2006 to 2010), the Ministry of Finance will go all out to optimize investment and consumption structure, said its minister Jin Renqing in Beijing Saturday at a seminar on China's finance and taxation.

 

Against the backdrop of relatively overheated investment and downturn consumption, it is vital to optimize investment and consumption structure and stimulate consumption so as to keep the rapid and healthy economic development, he said.

 

He called for the rationalization of resources, labor force and land prices, saying income of low-income people should be promoted and the number of middle-income people should be increased.

 

Work on social security, education, technology and medical services should be enhanced to make people dare to consume, said he, also putting stress on increase of farmers' income and optimization of industrial structure.

 

The Ministry of Finance will accelerate reform on value-added tax, and unify the taxation system on domestic and overseas-funded enterprises, so as to spur corporate independent innovation, he said.

 

The government will use finance and tax policies to support recycled economy and push forward the construction of resource-saving and environment-friendly society, he said.

 

China's revenue this year is expected to exceed 3 trillion yuan (US$370 billion), according to the ministry.

 

In 2004, revenue for the whole country accounted for 19.3 percent of gross domestic product (GDP), much higher than the 15 percent in 2000, showing the government has become more capable in economic macro-control.

 

(Xinhua News Agency November 20, 2005)

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