Fiscal policy at the end of this year or from positive to prudent

Jia Kang, director of the Finance Science Institute of the Ministry of Finance, said in a recent meeting in Shanghai on the first Global Fund summit, although China's monetary policy and fiscal policy to adopt a tight and loose collocation, but the current fiscal policy has included the fade out of the arrangement, fiscal policy at the end of 2011 will likely from positive to prudent. Jia Kang pointed out that after the post-crisis era, many economies outside China will experience a long and tortuous recovery process, however, at this stage, the most major contradiction facing China is the rising inflationary pressure. To this end, China's macro-policy from the original dual-pine model to the current tight a loose collocation. Although we have continued to adopt an active fiscal policy, we have not put up any more positive measures and still maintain a financial arrangement of $900 billion this year. In another sense, the fiscal plan is linked to the fading out of future expansion policies.　　"he said. Looking to the future macro policy, Jia Kang said that the current fiscal policy has included the fading out of the arrangement, it can be foreseen that when the positive fiscal policy arrives at a certain point in time, the official will make a clear statement of fiscal policy transformation. Jia Kang pointed out that China's fiscal policy changes will be more focused on structural optimization.　　The emphasis of structural optimization is to accelerate the transformation of production mode and improve the people's livelihood during the 35 period, which needs to cooperate with the innovation and transformation of the mechanism while increasing investment. He introduced, first of all, structural tax cuts.　　The most important part of the structural tax reduction during the 35 period is VAT expansion, reducing the repeated taxation of the tertiary industry, encouraging the development of tertiary industries, and promoting the upgrading of consumption and the whole industrial structure with China's expanding domestic demand.　　The second is the adjustment of personal income tax, he pointed out that to "have a reduction and increase": the first is to reduce the tax on low-income groups, and the second is to use a combination of separate and comprehensive cumulative tax on the model to improve the tax of high-income groups. In addition, the introduction of property tax is unavoidable, the first place that the property tax system needs to be perfected is the real estate duty.