Priorities on how the money will be spent

Shanghai will prioritize improving business environment, supporting reforms and innovation, and serving public welfare in this year’s fiscal policy, the city’s finance bureau said.

This year’s fiscal policies will be active supporting a new round of opening-up in Shanghai and the missions to boost services, manufacturing, consumption and culture, the Shanghai Finance Bureau said in a report submitted to the Shanghai People’s Congress.

To improve business environment, the bureau will further cut tax and reduce fees for companies.

The management of fiscal subsidies will be fairer to ensure market competitiveness, and fiscal support will be more inclusive to encourage innovation, the bureau said.

Multinationals will be further supported to open regional headquarters and operations in Shanghai, as part of the city’s efforts to become a hub in the Belt and Road initiative.

Extra spending will also be used to develop the rural areas, compensate low-income population, balance educational resources and nurture multi-level hospital systems.

The bureau expects the general public budget revenue to grow 7 percent from the actual revenue in 2017 to 710.8 billion yuan (US$112 billion) this year, while budget expenditure will rise 3.6 percent to 782 billion yuan.

Growth of fiscal revenue is expected to be slower than last year’s 9.1 percent due to tax cuts and a high base, according to the bureau.

The government plans to transfer 25 percent of profits of the city’s state-owned capital into the general public budget this year, up from 22 percent in 2017.