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Friday, May 5, 2017, 16:12

Incentives for local govts to push reforms

By Xinhua

Incentives for local govts to push reforms
This photo taken on March 7, 2017 shows Chinese employees working on micro and special motors for mobile phones at a factory in Huaibei, East China's Anhui province. (STR/AFP)

BEIJING - Local governments will receive incentives and fiscal support for implementing reforms and policies to support growth, officials announced at a State Council Information Office press conference Friday.

Currently, there are 24 incentive measures, focusing on sectors including capacity cuts, private investment and social welfare.

The central budget will earmark 2 billion yuan to support projects strengthening weak business links and benefiting people's livelihood

Li Pumin, secretary general of the National Development and Reform Commission, said that the central budget will earmark 2 billion yuan (US$290 million) to support projects strengthening weak business links and benefiting people's livelihood.

READ MORE: China remains major engine for world economic growth

Officials from the Ministry of Finance and the Ministry of Land and Resources also introduced incentive measures.

REWARD FOR SUCCESSFUL TRANSITION

The Ministry of Finance announced plans to reward regions that beat benchmarks in cutting overcapacity, budget management, encouraging public-private-partnerships (PPP), supporting employment and poverty relief.

Financial support and favorable policies will be granted to regions which make solid progress in such areas, according to a statement.

A special fund worth 100 billion yuan will be allocated to nine provinces, which beat government targets or fulfill tasks ahead of schedule in cutting overcapacity in steel and coal, the statement said.

Officials should focus on effective implementation of policies, instead of paperwork, the central government added.

Also, a total of 10 provinces are scheduled to be awarded for better budget enforcement, budget openness and debt control.

For regions which take the lead in encouraging PPP projects, as ways to fund infrastructure projects and ease the debt burden on local governments, awards will be granted based on their investment scales.

Achievements in improving livelihoods, including supporting employment and relieving poverty, will also be rewarded through favorable policies.

The ministry pledged early allocation of funds and urged local governments to conduct inspections on their allocation.

China is cutting overcapacity, reducing inventory, deleveraging, lowering costs and strengthening weak links as part of supply-side structural reform that began in 2015.

In November 2016, the central government told local authorities to implement reforms and policies to support growth and improve people's livelihoods.

ALSO READ: China eyes sustained economic growth through reforms

It said positive results have been achieved in economic growth and supply-side structural reforms in 2016, but problems still remain.

Official data indicates that China has eliminated steel production capacity by more than 65 million tons and coal by over 290 million tons in the last year.

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