Minister of Finance Xie Xuren said Tuesday China will continue adopting prudent fiscal policy in the foreseeable future and keep the size of deficits and treasury bonds at sound levels.

Xie, who is a delegate to the ongoing 17th National Congress of the Communist Party of China (CPC), told Xinhua that the government will coordinate the fiscal policy with monetary policy, in a drive to strengthen and improve macroeconomic management.

With the Scientific Outlook on Development, Xie said, the Ministry of Finance will implement policy incentives to encourage innovative companies and increase state investment in research and development in key national labs.

The financial and taxation branches of the government have to build and improve the fiscal and taxation institution which supports a resources-efficient and environment-friendly economy, Xie said.

(Xinhua News Agency October 16, 2007)