Shou Xiaoli:

The last question.

China Daily:

The third plenary session of the 20th CPC Central Committee made important arrangements for deepening the reform of the fiscal and tax systems. Could you please tell us what specific measures the Ministry of Finance will introduce next? Thank you.

Lan Fo'an:

Thank you for your question. The question of reform is of significant concern to everyone, especially after the third plenary session of the 20th CPC Central Committee made important arrangements for deepening the reform of the fiscal and tax systems. The session clearly outlined reform requirements such as "improving the budget system," "making taxation systems more conducive to high-quality development, social fairness and the building of a unified market," "establishing a fiscal relationship between the central and local governments that features well-defined powers and responsibilities, and the appropriate allocation of resources, with an optimum balance between regions" and "improving the systems for managing government debt." The Ministry of Finance is diligently studying the guiding principles of the third plenary session of the 20th CPC Central Committee, considering the effective implementation of reform tasks as a top priority in the present and future periods and is steadily advancing forward. Throughout the reform's implementation, we will focus on properly handling the relationships between the government and the market, the central and local governments, efficiency and fairness, overall and local interests, and long-term and current considerations. We strive to transform the strategic deployment of comprehensively deepening reform into a powerful force for advancing China's modernization. Specifically, there are three points:

First, we will promptly introduce the implementation plan for reform. We will adhere to problem-oriented and goal-oriented approaches, ensuring that the accelerated advancement of reforms is integrated with our efforts to strengthen scientific management of public finances. We will actively respond to public and grassroots concerns, elaborating on specific task lists for each reform task outlined in the plenary session and clearly defining timelines and priorities. We have preliminarily developed an implementation plan for deepening the fiscal and tax system reform, which will serve as the "blueprint" for future reforms.

Second, we will accelerate the implementation of reform measures. We adhere to a phased and step-by-step approach to steadily promote reforms, planning as a whole deadlines for the implementation of various reform measures. We plan to roll out this and next year a batch of mature and tangible reform measures, especially fundamental institutional reforms that are crucial for top-level design. These include improving the budget system, refining the fiscal transfer payment system and establishing a government debt management system with Chinese characteristics that aligns with high-quality development. This will gradually establish a reform outcome system where fundamental institutional reforms take the lead, followed by successive measures in specific areas.

Third, we will emphasize the combination of top-level design and grassroots exploration. Building upon clear reform principles and directions, we encourage and support relevant parties to innovate reforms based on local conditions. We have organized pilot projects for zero-based budgeting reform in central departments and plan to initiate trials for scientific fiscal management in certain regions. We will tailor reform pilots' content based on the characteristics of different regions and departments. With full respect to a pioneering spirit, we'll summarize reform experiences, replicate and promote them in a timely manner so as to intensify reforms in line with the times.

Next, the MOF will continue to implement reforms with relentless perseverance to actively and steadily form a favorable pattern where fiscal macro-control is more targeted, the budget system is more sound, the tax system is more optimized, the fiscal system is more perfected and fiscal development is more sustainable. Efforts will be made to provide a more solid fiscal guarantee for building China into a great modern socialist country in all respects through a Chinese path to modernization.

Thank you!

Shou Xiaoli:

Thank you, Minister Lan, thank you to all of the presenters and thank you to all friends from the media for your participation. That concludes today's press conference. Goodbye!

Translated and edited by Xu Xiaoxuan, Yuan Fang, Zhu Bochen, Wang Qian, Yan Bin, Mi Xingang, Wang Yanfang, Guo Yiming, Xiang Bin, Liu Caiyi, Wang Wei, Chen Xinyan, Huang Shan, Li Huiru, Zhang Rui, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.