China to continue pro-active fiscal policies

Pro-active fiscal policies launched last year to counter an economic slowdown worldwide will be extended into this year. The finance minister says pulling out too early could inflict damage on the economy.

Xie Xuren was speaking at a policy-setting meeting on Sunday, where he added that fiscal stimulus for 2010 would focus on expanding domestic demand. These would include policies to raise incomes, especially for poorly paid workers and farmers, as well as continued spending on public works, including schools and hospitals. The central government is predicting investment of up to 993 billion yuan in public works this year, an increase of 9.3 percent from last year.

Xie Xuren said, "This year's public investment will focus on structural adjustment and increasing incomes, especially for low-income-earners, so as to boost overall ability to spend."