Xinhua recently published a commentary after the National Financial Work Conference, observing that the Chinese government is preparing to tighten its control over spending. The Conference outcome was a guideline for all levels of the government to do careful planning next year, ensuring that money is spent only on things that are required. In the year 2019, China delivered a major tax cut package that boosted the market while eating into government income. It is expected that the next year will continue to have the same challenges China has today, if not more. All government branches are asked to get ready for tough days ahead and all the work should focus on expanding income sources and reducing the budget. The government should set an example for the whole country on looking at all phases of operations to cut costs. The Conference sent the message that the Chinese leadership is asking the entire government system to “get serious” about the coming tight days, by cancelling unnecessary projects and strictly controlling new initiatives. “Scientific money management” should become the new norm and should form the foundation of a sustainable society.
Source: Xinhua, December 27, 2019