Faced with rising prices, monetary authorities from all over the world usually call for government belt-tightening. This time, it is China that is highly concerned about excessive spending. According to Chinese news agency Xinhua, a representative of China's finance ministry urged local officials to spend budget funds more efficiently.
Finance Minister Lan Foan believes that the country's authorities at all levels need to tighten their belts and improve the structure of expenditures so that budget funds are used where they are needed most and to the best effect.
Speaking at a session of the National People's Congress in Beijing, the minister said China would stick to a proactive fiscal policy and a prudent monetary policy.
According to Lan Foan, it is necessary to wisely expand fiscal spending to ensure sufficient funding for major national strategic tasks. First of all, this refers to an increase in government bond issuance to foster social investment, the official added.
In 2023, the country's spending on research and development as a share of GDP reportedly increased to 2.6%. The prolonged technological confrontation between China and the US and a record jump in Chinese government debt resulted in higher R&D expenditures. As a result, the number of patents granted in China surged by more than 15% over the year. At the same time, the Chinese authorities are ready for more breakthroughs in innovative areas and core technologies. However, this requires a combination of state efforts and private resources, the ministry assumes.
