Ou Wenhan, assistant Chinese finance minister, stated at a press release held by the Information Office of the State Council of China on February 24 that China’s Ministry of Finance (MOF) will expand the amount of special local government bonds being issued in order to channel the money raised into projects, and will guide local governments in the issuing of bonds, aiming to form effective investments as soon as possible.
Mr. Ou said the MOF will intensify counter-cyclical adjustments of macro policy, to implement a proactive fiscal policy. For instance, it will continue to study and introduce targeted policies to reduce fees and taxes, giving priority to supporting the resumption of production in some key industries and helping small, medium and micro businesses overcome difficulties. Meanwhile, the MOF will focus on using some of the funds available from central government departments to coordinate key expenditures for epidemic prevention and control, poverty alleviation and the building of a moderately prosperous society in all respects. Moreover, the MOF will continue to give more funds to the areas affected by the coronavirus.