China’s to pay profits to finance fiscal spending: Ministry of Finance

BEIJING, March 8 (Reuters) – China’s central bank will be among state-owned financial institutions that will pay part of their profits, including arrears, to the government this year to fund increased fiscal spending, the finance ministry said on Tuesday. .

The People’s Bank of China and other state institutions and monopolies are required by Chinese law to pay a portion of their profits to the government, although this has been suspended for two years due to COVID-19. , the finance ministry said in a statement on its website.

China Investment Corp, the sovereign wealth fund, and China National Tobacco Corp, the world’s largest cigarette maker, are among the financial institutions and monopolies that will pay excess profits from previous years, he said.

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The Ministry of Finance said in its 2022 budget released on March 5 that it expects state-owned financial institutions and state monopolies to pay out a total of 1.65 trillion yuan ($261.25 billion). profit this year.

Payments and other remittances will help boost fiscal spending by 2 trillion yuan this year, the ministry said.

China will increase fiscal spending this year to support a slowing economy, despite a lower budget deficit ratio, Finance Minister Liu Kun said. Read more

($1 = 6.3159 Chinese yuan renminbi)

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Reporting by Kevin Yao; Editing by Raju Gopalakrishnan

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