Chinese Premier Li Keqiang said that China will ensure the sustainability and continuity of macro policies in his government work report at the fourth session of the 13th National People's Congress (NPC) on Friday in Beijing.

Confronted with the COVID-19 pandemic, and the gradual recovery of China's economy, China has set the deficit-to-GDP ratio for the year at around 3.2 percent, slightly lower than that of last year, Li said, adding "no COVID-19 bonds will be issued."

Li also said that China will continue to cut the central government's expenditures, and general transfer payments to local governments will be increased by 7.8 percent, which is significantly higher than last year.

China will continue working on tax cut policies and give greater priority to serving the real economy. As an effort to support micro and small businesses, inclusive loans to these business by large commercial banks will increase by over 30 percent this year.

According to the report, the VAT threshold for small-scale taxpayers will be raised from 100,000 yuan to 150,000 yuan in monthly sales.

"We will enhance the quality, efficiency, and sustainability of our proactive fiscal policy," Li emphasized in his report.