China will expedite the release of special funds to enhance fiscal strength at the grassroots, said China's Vice Finance Minister Xu Hongcai at a press conference on Wednesday.

Earlier, China released new fiscal funds of 2 trillion yuan (290 billion U.S. dollars) that aim to directly benefit businesses and people, and consolidate the foundation of the country's restorative growth.

Expressing satisfaction at the successful release of the funds, Xu said nearly 300 billion yuan of the total funds had been used to support tax and fee cuts by mid August, while 1.674 trillion yuan or 98.5 percent of the remaining 1.7 trillion yuan have been allocated by the central government. Local governments have spent 509.7 billion yuan, accounting for 30.5 percent of 1.674 trillion yuan in funds.

"The implementation of specific policies and measures will have a positive impact on investment, consumption as well as imports and exports," he said.

Xu said the distribution work is basically done with only a small amount of money left, such as funds reserved for follow-up COVID-19 control. "Time has been shortened and efficiency improved significantly from previous years. We can also expect that the cities and counties have already allocated funds to projects, which lays a good foundation for the follow-up budget implementation, and the speed will be further improved."

Continuous efforts will be made to prompt local governments to spend the allocated funds on market entities and people's livelihood, closely monitor the use of funds and strictly deal with irregularities and misuse of funds once they are spotted, Xu added.

Officials also emphasized that the fiscal policy aims to drive China's economic rebound while maintaining stability in priority areas.

Budget Bureau Chief of the Ministry of Finance Li Jinghui said the policy's implementation had made a difference in epidemic containment, and helped maintain a steady economic foundation as well as people's livelihoods.

"Local governments have optimized the spending structure according to local conditions. It mainly focuses on containing the outbreak, helping market entities and people experiencing difficulties, guaranteeing people's basic needs and employment, supporting authorities at the grassroots, and constructing major projects," said Li.

China has set a 2020 budget deficit of at least 3.6 percent of GDP, up from last year's 2.8 percent, under the current circumstances. The government also has finished issuing 1 trillion yuan in special treasury bonds.

Source: CGTN