Rampant financial abuses hindering growth

PUBLISHED : Friday, 23 July, 1999, 12:00am
UPDATED : Friday, 23 July, 1999, 12:00am

Widespread financial malpractice has thwarted economic performance and policy implementation, according to a party leader.

Vice-Premier Li Lanqing told the National Finance Conference in Beijing the problem had spread to nearly all sectors.

Mr Li, a member of the Politburo Standing Committee, said: 'The manner in which the violation occurs is getting increasingly covert. The amount of money involved is shocking.' He called for 'stern measures' to improve the situation which 'has seriously affected the normal operation of the economy and a smooth implementation of the macro-economic policy'.

State media yesterday quoted Mr Li as saying the central authorities had decided to reinforce the 'pro-active fiscal policy' - to ease credit and spur growth - in view of 'new situations and new problems'.

The measure 'is expected to activate domestic consumption, investment, and export', he said.

Mr Li singled out 'increasing the state income and adjusting the expenditure management' as two areas that needed special attention.

He was satisfied with the amount of state income in the first half of the year.

He made special mention of the Customs and tax departments.

Mr Li said expenditure had to be given priority because of a tight budget.