2019 fiscal policy
• Budget deficit target of 2.8%, 0.2% higher than last year • Unify VAT tax structures from three rates into two
• Approval of RMB1.39 trillion of bond issuance to fund infrastructural projects
• Permission of rail projects which worths more than $125bn
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• IMF criticised the spending on healthcare is low from international standard (2.4% of GDP)
• The regressive tax structure puts burden on low income households (effective rate of over 40%)
• In 2018, tax revenue had decreased approximately RMB1.3 trillion
• VAT cuts: 6% for service sector and 16% for manufacturing sector
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• Huang, Z. (n.d.). China’s fiscal deficit target. [image] Available at: https://www.theatlas.com/charts/S1LfuKcuz.
• Fiscal Policy Reform. (2018). Fiscal Affairs. [online] Asia Society Policy Institute. Available at: https://chinadashboard.asiasociety.org/fall-2018/page/fiscal-affairs .
• https://www.imf.org/en/Publications/WP/Issues/2018/12/11/Chinas-High-Savings-Drivers-Prospects-and-Policies-46437 The one above is the same
)• Zhang, L., Brooks, R., Ding, D., Ding, H., He, H., Lu, J. and Mano, R. (2018). China’s High Savings: Drivers, Prospects, and Policies. IMF Working Papers. [online] Asia Pacific Department, p.12. Available at: https://www.imf.org/en/Publications/WP/Issues/2018/12/11/Chinas-High-
• Zhao, J., Zhao, Y., Han, M. and Pi, X. (2019). China to Propose Wider 2019 Fiscal Deficit Amid Slowdown. [image] Available at: https://www.bloomberg.com/news/articles/2019-01-09/china-is-said-to-propose-wider-2019-fiscal-deficit-amid-slowdown .
• China Government Spending. (2018). [image] Available at: https://tradingeconomics.com/china/government-spending [Accessed 6 Apr. 2019].
• China Government Budget. (2018). [image] Available at: https://tradingeconomics.com/china/government-budget [Accessed 6 Apr. 2019].
)• Woo, R., Navaratnam, S., Borsuk, R., Chen, Y. and Pollard, M. (2019). China says will step up fiscal spending this year to support economy. Reuters. [online] Available at: https://www.reuters.com/article/us-china-economy-fiscal/china-says-will-step-up-fiscal-spending-this-year-to-
• Fiscal Policy Reform. (2019). Fiscal Affairs. [online] Asia Society Policy Institute. Available at: https://aspi.gistapp.com/winter-2019/page/fiscal-affairs .
• Hancock, T. (2019). China steps up fiscal spending as it approves $125bn of rail projects. Financial Times. [online] Available at: https://www.ft.com/content/c272c1fc-0fee-11e9-a3aa-118c761d2745 .