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
· 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%)
Cutting taxes
· 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:
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· Fiscal Policy Reform. (2018). Fiscal Affairs. [online] Asia Society Policy Institute. Available at: .
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· 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:
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· Zhao, J., Zhao, Y., Han, M. and Pi, X. (2019). China to Propose Wider 2019 Fiscal Deficit Amid Slowdown.
[image] Available at: .
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· China Government Spending. (2018). [image] Available at: [Accessed 6 Apr. 2019].
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· China Government Budget. (2018). [image] Available at: [Accessed 6 Apr. 2019].
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· 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:
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· Fiscal Policy Reform. (2019). Fiscal Affairs. [online] Asia Society Policy Institute. Available at: .
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· Hancock, T. (2019). China steps up fiscal spending as it approves $125bn of rail projects. Financial Times. [online] Available at: .
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