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By Yin Lei

China will adopt a more proactive fiscal policy to shore up its economy, according to a report from Xinhua News Agency on Sunday.

This more proactive fiscal policy will display a higher degree of foresight, flexibility and efficacy. It will play a larger role in boosting domestic demand and economic restructuring, and push China's economy toward high-quality growth, said Liu Kun, Minister of Finance, in an interview with Xinhua.

Up to now, China's proactive fiscal policy had shown its effects not only in cuts in taxes and fees but also in the issue of government bonds and use of government budgets, according to Liu. 

Aside from the target to cut taxes and fees by 1.1 trillion yuan in 2018, or 158.9 billion US dollars, which was set early this year, a series of other measures were enacted to support the real economy and technological innovation. These extra measures would raise this figure to 1.3 trillion yuan, or 187.8 billion US dollars. 

As of Sept. 26, local governments had issued 91.8 percent of this year's scheduled general bonds and 85 percent of the special ones. By the end of August, 67 percent of the annual government budget had been used across the country.

Liu said China's fiscal policy, as it grows to be more proactive in the future, would target four priorities. 

Businesses will continue seeing diminishing taxes and fees. While the current fiscal policy to this end is being executed, further tax cuts covering a large scope and fee reductions with more visible results will be considered.

Weak links in infrastructure will see strengthening, with robust support going to key projects prioritized by the central government.

Consumption will be encouraged. A better income distribution mechanism will be in the pipeline to boost people's income and consumption.

Government agencies will practice austerity on themselves, and in doing so spare more to spend on people's livelihood.