FAST FIVE: Beijing Crashes The Party: Chinese Media Warns Austerity Is Coming After FinMin Says "Proactive Fiscal Policy" No Longer Feasible
And in all honesty, until today there was little reason to believe otherwise.
There is just one problem: none of it is true based on what China's finance minister Liu Kin wrote today in Qiushi, the Communist Party of China's flagship magazine.
In this situation, it won't be feasible to adopt a proactive fiscal policy by expanding the fiscal expenditure scale.
However, a potential decrease in fiscal revenues directly points to the limited room for splashing out on unnecessary programs.
While there has been a consensus among economists and investors for the fiscal deficit ratio to break the 3% GDP mark temporarily so that more space could be given to fiscal expenditures to stabilize the economy amid the epidemic, the Global Times says that the fiscal space constraint is not the key reason for belt-tightening.