China's Finance Minister Xie Xuren spoken on the sidelines of the National People's Congress about the country's fiscal policy. The Chinese Government will continue its proactive stance, but will make "monetary" policy more prudent to help stabilize overall prices.

Xie Xuren outlined the Government's goals and a shift in priority.

The target for this year's fiscal budget deficit as a percentage of GDP will be cut from last year's 2.8 percent to 2 percent.

Xie stressed that overall price stability is the top priority for the Government's economic work this year.

"We will continue the proactive fiscal policy but the intensity, pace and focus of the policy should reflect the core requirement of current macroeconomic control," he said. "That is to seek a balance between steady but relatively fast economic growth, adjustment of the economy's structure and managing inflation expectations."

In order to deal with the global financial crisis, China increased public spending. Some of those projects are still under construction and need investment. Xie said they won't be left incomplete.

More expenditure will go towards agriculture, education and medical treatment. He said more government spending will help stimulate both personal income and consumption growth.

Xie added that the Government will also try to reduce administrative costs, by implementing financial and economic discipline to practice austerity among government agencies.

(CNTV.cn March 8, 2011)