BEIJING, March 7, 2016 (Xinhua) -- Chinese Minister of Finance Lou Jiwei gives a press conference on the sidelines of the fourth session of China

 

BEIJING, March 7, 2016 (Xinhua) -- Chinese Minister of Finance Lou Jiwei gives a press conference on the sidelines of the fourth session of China's 12th National People's Congress at the press center in Beijing, capital of China, March 7, 2016. (Xinhua/Li Xin)

 

He also elaborated on the increase in bad loans of banks. He said the market mechanism and government support might help China handle the issue well. He said that his concerns about the rising non-performing loans were due to the banks' importance to the financial system and national economy.

 

The finance minister announced that business tax in all industries will be replaced by value-added tax before May. He also cited achievements in fiscal and tax reforms.

 

"Both budgeting and budget implementations have adhered to the basic principles of the Budget Law, such as budgeting before spending, procedures for budget adjustments, budget details that can be made open to the public, balance mechanisms going beyond the year, medium-term fiscal plans, and the management of debt, especially those concerning local government debt. All these we have managed to carry out," Lou said,