Budget revenues of the southern Chinese province of Hainan increased by 12.9% last year, amounting to 92.12 billion yuan (over $14.4 billion).This was announced by the Department of Finance of the region.
According to him, Hainan exceeded the target by 9.6%, even despite the introduction of a number of tax breaks and benefits for key enterprises, small businesses and highly qualified specialists. At the same time, the authorities have increased the effectiveness of fiscal control.
Such a strategy, as noted, allowed to reduce the pressure on companies that, thanks to the released funds, were able to increase financing, increase economic activity and their own incomes. Thus, against the background of a reduction in the tax burden, the budget allocations of enterprises that have increased the scale of commercial activity have continued to grow.
On April 13, 2018, Chinese President Xi Jinping announced the creation of an experimental zone and a free trade port on the island. The goal of the program is to involve Hainan in the process of globalization and international distribution of labor, to lay a solid innovation base. The provincial authorities create attractive conditions for investors, form a developed research infrastructure. According to the government plan, by 2050 this region will turn into a unique cluster with an advanced economy, where the campuses of leading universities, advanced laboratories and headquarters of leading multinational corporations will be located.
