China has a clear goal this year to focus on development of rural areas by enhancing financial support for related projects, a statement showed Wednesday after a cabinet meeting chaired by Premier Li Keqiang.
Multiple work guidelines were set at the State Council meeting to be consistent with the goal, with authorities pointing out the need to nurture the development of rural banks, strengthen the capital position of rural banks and cooperatives by lowering their reserve requirement ratios, and have all remote areas covered by basic financial services.
The State Council also acknowledged that ensuring employment is vital for keeping economic growth stable, according to the statement posted on the government website. In keeping with the objective, the cabinet decided that a preferential tax policy aimed at encouraging firms to boost employment will be extended to end-2016. The policy was earlier envisaged to be in place until end-2013. All firms can enjoy the policy as long as they employ people who had been jobless for one year or longer.
Meanwhile, the cabinet was of the view that all major economic indicators, including economic growth, employment and prices, were within target ranges in the first quarter. But it said more work is needed as the economy continues to face downward pressure.
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