Publication Recommendation | Enhancing Fiscal Policy for a Digital Era: Navigating the Challenges of Digitalization
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Recently, the Chinese Academy of Fiscal Sciences (CAFS) and the Social Sciences Academic Press (SSAP) jointly published the Blue Book of China’s Fiscal Policy: Annual Report on Fiscal Policy of China (2023).
This report pinpoints that there are different understandings of digital economy. According to the G20 Digital Economy Development and Cooperation Initiative, “The digital economy refers to a broad range of economic activities that include using digitized information and knowledge as the key factor of production, modern information networks as an important activity space, and the effective use of information and communication technology (ICT) as an important driver of productivity growth and economic structural optimization.” Recognized as the most dynamic, innovative, and radiating economic form, the digital economy is deemed unstoppable. To capitalize on the opportunities arising from the new round of scientific and technological revolution and the industrial transformation, and to bolster the core competitiveness and international standing of China’s modern economic system, there is an urgent need to accelerate digitalization. A proactive approach should be in place to address the ensuing risks, particularly the loss of early advantages in the new round of scientific and technological revolution and the industrial transformation, and new inequalities introduced by the widening of the digital divide, pronounced digital exclusion, and weak inclusiveness. In the mid to long run, the Blue Book advocated for a refined fiscal policy aligning with digitalization to manage related risks upon a deep understanding of digital transformation, networked reshaping, and intelligent enhancement, as well as macro top-level design and systematic planning for digitalization.
Firstly, we should make a big push to S&T innovation and step up efforts to develop key core technologies. Secondly, we should bolster the industry’s growth and cultivate new drivers of development. Thirdly, we should advance digital governance and enhance the equalization of basic public services. Fourthly, we should explore digital economy taxation and develop taxation policies and systems tailored to the digital economy.