Government policy to support business growth

The Chinese government has set aside bullets, especially in terms of fiscal policy, to tackle economic risks and support business growth in the second quarter, according to policymakers and experts.

Officials from the Ministry of Finance are not worried about the rapid growth in government expenditure conflicting with the decelerating income growth. They said on Thursday that the government has the wherewithal to maintain fiscal resilience and limit deficit pressure.

Admitting that strains have been increasing in the second quarter, a senior official, who did not wish to be named, from the ministry's National Treasury Department, told China Daily that the government is exploring ways to offset the income slowdown. "More effects from tax cuts will be seen in May and June, but we will maintain fiscal balance under the targeted deficit," he said.