Fiscal policy stays key driver of rebound

Fiscal policy will remain the key driver of China's economic rebound, focusing on supporting the real economy as monetary policy becomes more cautious, said analysts.

The amount of tax cut in the first three months was 341.1 billion yuan ($50.75 billion) more than that in the same period last year, and 72.2 billion yuan was due to the new policy taking effect since January, the country's tax authority said on Tuesday.

The reduction was mainly contributed by small and medium-sized companies' corporate tax, and individual income tax, said Cai Zili, director of the Property and Behavior Taxation Department of the State Taxation Administration.