Finance Minister says govt to practice austerity

In forthcoming year, the government will have to practice austerity in coping with the gap between a slowdown in revenue income and a rise in fiscal spending obligations, said the Finance Minister.

"Some expenditures that are unreasonable or unnecessary due to changing policy environments should be cut or scaled down, which could make spending on social welfare more sustainable," Lou Jiwei told a national fiscal conference on Monday.

Government operating expenses would be squeezed, in particular spending on government receptions, overseas visits and car purchases, which could ensure spending on social welfare such as social insurance and pension funds, Lou said.