Kang: Next year fiscal policy focuses on public risks and holds pressure

On the morning of 12th, Kang, director of the Finance Science Institute of China's Ministry of Finance, said in a speech at the 2010 China Iron and Steel Market Meeting held in Shanghai that this year's government monetary and fiscal policy makes China's fiscal deficit and national debt scale expand, fiscal policy next year to pay attention to public risk, so that　　Kang introduced that the government's package of economic stimulus program to the national economy from the previous low to high, from the start of the industrial chain upstream, to the current downstream gradually feel the economic recovery, as well as the gradual increase in income, the Government's investment on the effect of economic pull constantly appear. But he also suggested that the policy of fiscal loosening led to a massive rise in our fiscal deficit and the size of our national debt. This year's deficit rate reached 2.9% per cent and increased borrowing, including increased local borrowing, although this year the deficit rate was within 3% of the safety line and the debt burden was around 40%, and the increase in borrowing was less than international.　　, but the recessive debt is more; therefore, the fiscal policy must pay attention to the public relations risk, achieves maintains the pressure.　　For local development financing platform, Kang proposed that this has become the main source of local debt, local government debt is more than the standard and low level of the status quo. "How to control the total amount, how to establish the supervision mechanism, we should adopt the way of dredging, in giving a certain level of credit at the same time, but also to standardize the allocation to all levels of local government."　　"he said. Kang also said that next year will promote local government sunshine financing, to use the Ming rules to replace the unspoken rules, so as to standardize local government financing. (Cam is from Shanghai)