new panel sought on fiscal policy

PUBLISHED : Saturday, 01 January, 2005, 12:00am
UPDATED : Saturday, 01 January, 2005, 12:00am

A top think-tank wants the central government to set up a body to develop fiscal policy.

It says the measure would accelerate the reform of decision-making on public finances and improve the government's ability to implement macroeconomic controls.

The proposed fiscal policy committee would complement the central bank's Monetary Policy Committee, said the Institute of Finance and Trade Economics under the Chinese Academy of Social Sciences.

In its annual report on the nation's financial policy, titled 'Scientific Development Concept - New Thinking to Guide China's Fiscal Policy', the institute said it had become vital for the government to consider setting up a fiscal policy body.

The suggestion comes amid a critical shift in fiscal policy. A high-level party meeting last month announced that the mainland would adopt a prudent fiscal policy, ending what it called the 'proactive fiscal policy' of the past six years.