China unveils plans to activate existing fiscal funds

BEIJING - China's State Council, the cabinet, on Wednesday announced fiscal policy plans to stabilize economic growth.

In a notice on gov.cn, the cabinet said central government departments and local governments should reallocate any unspent money from the 2012 fiscal year and before that to new budgets.

The aim is to "activate existing funds" and ensure a more proactive fiscal policy is implemented, it said.

The economy last year posted its weakest annual expansion in 24 years, which may lead to slower growth in national fiscal revenue and higher expenditure.

A pilot scheme, starting this year, will establish a three-year rolling budget in sectors such as compulsory education, health care and environmental protection, to achieve targets.

It also vowed to intensify crackdowns on violations such as embezzlement of state revenue.