Developing The Economy Can Not Rely Solely On Monetary Policy.

Zhu Guangyao, Vice Minister of finance of China, said at the IIF G20 conference in Shanghai that China will raise its deficit this year and the RMB exchange rate also needs to be stable.

The development of economy can not rely solely on monetary policy. Fiscal policy should also play a role in forming a better policy mix.

"China's national fiscal deficit in 2015 is 2.3%, and there is still room for expansion in 2016. As for the specific number, we must wait for prime minister Li Keqiang's report and NPC resolution."

Say.

How much is the deficit rate? How many people in the industry estimate that the deficit is about 3% in 2016.

According to Lou Jiwei's statement, to expand the deficit scale, we need to deal with the relationship between "steady growth" and "risk prevention".

Recently, China

Sheng Songcheng, director of the survey and Statistics Division, wrote that in the coming period, China's fiscal deficit rate could be raised to 4% or even higher.

Sheng Songcheng believes that in the coming period, our country will be

Expanding to 4%, we can still control the debt ratio of our government at 70% at the end of 2025, and will not bring higher debt risk to our government.

It will also create conditions for tax reduction and structural reform of supply side, and will help to play a positive role in fiscal policy.

Jiang Zhen, a researcher at the Institute of Finance and economics of the Academy of Social Sciences, told reporters on China securities net that the financial deficit should be determined according to the needs of China's economic development.

At the present stage, it is very necessary to adopt a moderate deficit policy, which is always discussed in the general public budget. But if we take a full fiscal deficit, this problem may become more prominent.

The central economic work conference held at the end of last year put forward that in 2016, the positive fiscal policy should be intensified, the tax reduction policy should be implemented, and the fiscal deficit rate should be raised at a phased stage.

As the executor, Lou Jiwei, Minister of finance, stressed at the national financial work conference that raising the deficit rate and reducing taxes step by step is the primary force in the 2016 and future.

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A two day meeting of G20 finance ministers and central bank governors will be held in Shanghai.

Zhu Guangyao, Vice Minister of finance of China, said in Shanghai 25, there is downside risks in the global economy. G20 member states need to strengthen policy coordination to deal with challenges and boost global market confidence.

According to Xinhua news agency, the G20 finance ministers and central bank governors' meetings are held once a year. The main task is to analyze the current global economic situation and explore strategies.

This year's meeting has attracted much attention, one is that the host is China, and the two is because the world economy is suffering from "cold".

The International Monetary Fund (IMF) lowered its global economic growth in 2016 this year to 3.4%, slightly higher than last year's 3.1%, and the world bank lowered its world economic growth forecast in 2016 to 2.9%, lower than the forecast in the middle of last year. The latest report released by the organization for economic cooperation and Development (OECD) in February also lowered the expected growth rate of GDP in 2016, from 3.3% in last year's November to 3% in January.

"The adjustment of the above data reflects more or less the fact that the downside risks of the economy are the challenges facing the global economy."

Zhu Guangyao said, "the meeting of the G20 finance ministers and central bank governors will discuss how the member states strengthen unity and policy coordination and cooperation, so that the global economy can return to the track of growth and balance the immediate, medium and long-term economic growth."

Zhu Guangyao also said that as China's second largest economy, its policies will affect other countries, and the policy of the Federal Reserve will also affect other countries. Therefore, to strengthen policy coordination, the G20 meeting has become very important.

Zhu Guangyao said that fiscal policy should not only rely on monetary policy, but also play a role in better policy mix.

At the same time, we need to have a good communication with the market so as to let the market understand the effect of the policy.