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Prudent fiscal policy to continue - Premier
(Xinhua)
Updated: 2005-12-20 08:22

China will continue to implement a prudent fiscal policy, Chinese Premier Wen Jiabao said in a written instruction to a national fiscal conference held in Beijing Monday.

China's state revenues hit 2.8 trillion yuan (about US$356.87 billion) in the first 11 months, up 18.5 percent year on year. State revenues are expected to reach 3 trillion yuan by the end of 2005, according to official figures.

China's governments have focused on economic and social development and made great achievements for the last three years, Wen said adding the work of government will be arduous in 2006.

Finance Minister Jin Renqing said government revenues are expected to exceed 3 trillion yuan (about US$375 billion) this fiscal year up more than 15 percent over last year's 2.6 trillion yuan (US$325 billion).

Addressing the national work conference on public finance, the minister said total government expenditures for the country during the 11 month period stood at 2.5326 trillion yuan (US$316.8 billon), up 17.3 percent, including 665.99 billion yuan in central government expenditure which is up 6.2 percent.

Local governments registered a growth rate of 21.8 percent in their expenditures during the period, totaling 1.8666 trillion yuan, said the minister.

Jin said that China's government revenues reached 2.1715 trillion yuan in 2003, the first time it exceeded 2 trillion yuan.

It took China's governments five years to increase their annual revenues from about 1 trillion yuan (about US$125 billion) to the 2 trillion yuan (US$250 billion) and two years to grow from 2 trillion yuan to 3 trillion yuan (US$375 billion), Jin said.
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