Will continue with proactive fiscal policy next year: China FM

China will continue with its proactive fiscal policy in 2011 with the objective of restructuring the economy and managing inflationary pressures while maintaining a high growth trajectory, Finance Minister Xie Xuren said.

Speaking at a conference yesterday, he said that finance departments across the country should put more focus on stabilising commodity prices next year to promote fast economic development.

He also called for more efforts to raise people's incomes and boost domestic consumption.

"The country will continue the reform in income distribution systems and strive to increase residents' incomes, especially those with lower salaries, to boost people's consumption power," Xie said.

The country should keep the fiscal deficit and government-led investment at a reasonable level in 2011, while optimising investment, he said.

Furthermore, China will improve its tax policy so that it plays a greater role in ensuring income distribution while reducing inequality.

China will also tweak government spending programmes to improve people's livelihood next year, Xie said, adding that that great efforts should be made to support economic restructuring and coordinated regional development to advance the transformation of the economic growth mode.