Page 18 - Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development

to good use and open for sharing. The enforcement of judicial rulings should
be better aligned with the bankruptcy system so that seized and frozen assets

will be used effectively in accordance with the law.
20. Making macroeconomic governance more effective
We should strengthen the strategic guidance of national development

plans, enhance coordination between fiscal and monetary policies, and
leverage the roles of industrial, price, employment, consumption, investment,
trade, regional, environmental protection, and regulation policies to create

more models of economic growth that is led by domestic demand, driven by
consumption, and sustained by self-generating momentum. We should
bolster counter- and cross-cyclical adjustments and implement more proactive

macro policies to keep growth, employment, and expectations stable. We
should make macro policy orientations more consistent, strengthen
evaluations of policy outcomes, refine expectations management mechanisms,

and optimize comprehensive performance evaluations of high-quality
development.
The role of proactive fiscal policy should be leveraged to improve fiscal

sustainability. We should promote sound fiscal management and better
coordinate fiscal resources and budgets to provide greater financial support
for major national strategic tasks and basic public wellbeing initiatives. We

should advance zero-based budgeting reform, unify budget allocation powers,
optimize spending structures, and tighten performance-based budget
management.

We should improve the local tax system and the direct tax system, refine
taxation policies on income generated from business operations, capital, and
property, and place tax break policies under better regulation. The overall tax

burden should be kept at an appropriate level. The central government
should hold more fiscal powers as appropriate and accordingly raise the
proportion of its expenditure. More fiscal resources should be placed at the

disposal of local governments. Oversight on accounting should be enhanced.
Expedited efforts should be made to establish long-term mechanisms for
government debt management that meet the needs of high-quality

development.
We should work faster to boost China’s strength in finance. We should
refine the central bank system, establish a well-conceived, prudent monetary
policy system and a far-ranging macro-prudential regulation system, and

improve the monetary policy transmission mechanism. We should step up

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