Premier Li Keqiang said government at all levels should reduce their general spending to adhere to tight budgets amid tax and fee cuts, reported Caixin.
Last week, Beijing announced taxes and fees would be cut this year by nearly RMB 2 trillion, to lower the burden on businesses affected by an economic growth slowdown.
In addition to cutting government spending, official coffers will receive RMB1 trillion by collecting profits from some state-owned financial institutions and state-owned enterprises administered by the central government, and by taking back idle fiscal funds that should have been used, Lisaid at a press conference after the National People’s Congress (NPC).
China’s budget deficit this year is expected to reach RMB 2.76 trillion, representing around 2.8% of the country’s GDP, according to this year’s government work report.
