Chinese Yuan banknotes are seen in this illustration taken February 10, 2020. REUTERS / Dado Ruvic / Illustration
Beijing (Reuters) – China has provided more than 110 billion yuan to fight the consequences of the coronavirus epidemic.
Vice-Finance Minister Xu Hongcai said at a press conference in Beijing on Thursday that over 39 billion yuan had not yet been spent. This should help the local governments. The ministry will also meet the funding needs of the hardest hit Hubei province, Xu said.
He warned that the outbreak could temporarily affect government revenue. However, the pressure on the government’s financial situation will ease as soon as the economy recovers. Beijing wants to help the sectors particularly affected by the virus outbreak. Beijing is already examining staggered tax cuts to help small and medium-sized businesses in difficulty in particular.
Some municipalities are also facing financing difficulties, said Liu Jinrun from the Ministry of Finance. While tax revenue in Hubei province remained relatively stable in January, the situation deteriorated noticeably in February. The ministry has increased the transfer payments to the regions particularly hard hit by the virus outbreak.
