China's budget surplus makes room for tax reduction
Wednesday, 13 August 2008
BEIJING, Aug 12 (Agencies): China's budget surplus exceeded one trillion yuan in the first half of this year, according to the ministry of finance.
The budget surplus not only shows China's financial sufficiency, securing the country's economic growth, but also signals room for tax reduction.
China gained 59.52 per cent of its annual financial budget in the first half, while the spending took 37.64 per cent of its plan for the whole year.
Although uncertainties of China's economy have increased in the first half, the situation of financial budget was not worse off under the prudent financial policy.
The adequate financial budget surplus gives strong support to China's tax reduction work in the rest of the year, and secures spending on improving people's life, infrastructure construction and economic restructuring.
Experts hold that China should adopt tax reduction measures to support the economic development and maintain the vitality of enterprises.
The showdown of the global economic growth and hiking price of staple commodity have left limited room for the operation monetary policy, and given greater play to financial policy.
In addition, China's economy may demonstrate a dual play of periodical adjustment and structural adjustment, underlining the role of financial policy in macro control.
Meanwhile, China's inflation rate was 6.3 per cent in July, easing from June's 7.1 per cent, the government said today.
Consumer price data was released by the National Bureau of Statistics a day after the government said producer prices had risen 10.0 per cent in July, the fastest rate in 12 years.
Inflation in July was driven mainly by high food prices, which were up 14.4 per cent from a year earlier, the bureau said.
Rising prices of fuel also played a role, with petrol prices up 22.2 per cent from a year earlier, according to the bureau.
Beijing in June lifted petrol and diesel prices by up to 18 per cent as the government moved to close the gap between state-set domestic prices and the soaring world oil market. The government also raised electricity costs.
Inflation in the cities in July was 6.1 per cent, while in the countryside it stood at 6.8 per cent, according to the bureau.
Prices are rising faster in the countryside partly as a result of recent policy measures aimed at lifting the economy in China's vast rural interior.
In the first seven months of the year, China's consumer price index was up 7.7 per cent from the same period in 2007, the bureau said.
The budget surplus not only shows China's financial sufficiency, securing the country's economic growth, but also signals room for tax reduction.
China gained 59.52 per cent of its annual financial budget in the first half, while the spending took 37.64 per cent of its plan for the whole year.
Although uncertainties of China's economy have increased in the first half, the situation of financial budget was not worse off under the prudent financial policy.
The adequate financial budget surplus gives strong support to China's tax reduction work in the rest of the year, and secures spending on improving people's life, infrastructure construction and economic restructuring.
Experts hold that China should adopt tax reduction measures to support the economic development and maintain the vitality of enterprises.
The showdown of the global economic growth and hiking price of staple commodity have left limited room for the operation monetary policy, and given greater play to financial policy.
In addition, China's economy may demonstrate a dual play of periodical adjustment and structural adjustment, underlining the role of financial policy in macro control.
Meanwhile, China's inflation rate was 6.3 per cent in July, easing from June's 7.1 per cent, the government said today.
Consumer price data was released by the National Bureau of Statistics a day after the government said producer prices had risen 10.0 per cent in July, the fastest rate in 12 years.
Inflation in July was driven mainly by high food prices, which were up 14.4 per cent from a year earlier, the bureau said.
Rising prices of fuel also played a role, with petrol prices up 22.2 per cent from a year earlier, according to the bureau.
Beijing in June lifted petrol and diesel prices by up to 18 per cent as the government moved to close the gap between state-set domestic prices and the soaring world oil market. The government also raised electricity costs.
Inflation in the cities in July was 6.1 per cent, while in the countryside it stood at 6.8 per cent, according to the bureau.
Prices are rising faster in the countryside partly as a result of recent policy measures aimed at lifting the economy in China's vast rural interior.
In the first seven months of the year, China's consumer price index was up 7.7 per cent from the same period in 2007, the bureau said.