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Business / Economy

Local govts should set realistic target

By Dai Tian (chinadaily.com.cn) Updated: 2014-12-31 14:32

China's fiscal income will grow at low to medium pace, said Finance Minister Lou Jiwei, urging local governments to set their revenue target at a realistic level and promote a healthy development of the economy, reported the Economic Daily on Wednesday.

"The government can't raise tax or increase burden on companies in the time of a slowing economy," said Lou after a national fiscal conference.

Lou asked authorities to focus on transforming the economic structure and achieving a more balanced growth while implementing positive fiscal policies, according to the Daily.

"Local governments need to overcome the speed complex, treat the change of revenue growth in a matter-of-fact way, and boost a healthy benign interaction between public finance and the economy," said Lou.

He added that reform of the budget management has started since 2014 and the government will further expand its openness next year.

"Apart from classified information, all department involved with fiscal funding should disclose their budget and final statement," said Lou.

Financial priorities next year also include enhancing management on local government debts and solving the extending debts while strictly controlling new issuance, according to the Economic Daily.

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