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Stability, sustainability key to solid macroeconomy

China Daily | Updated: 2021-03-15 09:40
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Liu Yuanchun:

China has set the deficit-to-GDP ratio for this year at around 3.2 percent, which means the deficit will still reach about 3.5 trillion yuan ($539.7 billion) due to a large increase in the economic growth base this year.

According to estimates made by many research groups, China's nominal GDP will grow by nearly 12 percent year-on-year this year. It means that fiscal revenues will increase by 8 to 9 percent this year.

The Government Work Report said general transfer payments to local governments will be increased by 7.8 percent, which is significantly higher than last year.

At the same time, 2.8 trillion yuan of central government funding, a figure much larger than last year, will be directly allocated to prefecture-and county-level governments to benefit businesses and people.

We will see strong sustainability and operability of the country's fiscal policy this year.

Xiao Gang:

The key to managing the links between economic recovery and risk prevention is to ensure the continuity, stability and sustainability of macro policies, stressing on the timing, effects and proper limits of policies.

On the one hand, the foundation of Chinese economic recovery is not yet solid. The government must maintain necessary support for the economy and avoid sharp turns in macro policies.

On the other, the country should make timely adjustments based on the changes in situations and exit from some of its economic support policies adopted in special periods in a steady manner.

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