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China must reform its existing tax system, which gives local authorities a greater share of the tax income, as the aggressive tax cut program and economy-boosting spending has increased fiscal deficits, said analysts.
China should encourage local governments to set up green funds and work together with social capital to bring down financing costs, Chen suggested.

China promised a more proactive and effective fiscal policy in 2017, with the fiscal deficit set at 3 percent of GDP, or 2.4 trillion yuan, up 200 billion yuan from 2016.
China is working on developing green and energy-saving construction to improve ecological environment in urban areas, according to the national housing and urban-rural construction working conference held in December 2017.
China should contain the overall leverage ratio and raise the financial sector’s capability of serving the real economy to prevent and defuse major risks, the meeting urged.
来源:资阳报