China's key economic task is to increase revenues and reduce expenditure, which is crucial for a sound economic environment and accomplishing other tasks this year, said Chinese Premier Zhu Rongji here Monday.
Zhu told a working conference on increasing revenues and reducing expenditure, presided over by Vice-Premier Li Lanqing, that China's economy had maintained a sound growth momentum amid a global slowdown.
So far this year, he said, China has maintained sustained rapid economic growth accompanied by good profits, rising domestic demand, growing exports and foreign capital used, smooth development of reforms, stable financial operations, increasing foreign exchange reserve and improving living standards of the people.
The overall economic situation this year is better than anticipated with remarkable achievements in some fields, establishing a solid base for all economic tasks set for this year, the premier said.
Zhu also pointed out some major problems such as slow growth in fiscal revenues and excessive expenditure. "All local governments and departments must pay great attention to increasing revenues and cutting spending," he said.
He stressed that it was crucial to reinforce tax collection by strictly prosecuting any individuals or departments who violated tax laws.
"Cutting spending is also an urgent task for us," said Zhu, who asked all governments and departments to set concrete goals and measures to increase revenues and reduce expenditure.
(Xinhua News Agency September 17, 2002)
