And with a very small Government debt, China would have little difficulty selling bonds to finance spending.
National Insurance is both a tax to finance current social-security spending and an entitlement to future benefit.
Another huge debate is on how to finance increased spending on education and infrastructure.
Sales of securities are a means used by central banks to maintain a positive overnight interest rate target and not to finance spending.
The Assembly rejected a proposed five-cents-per-gallon increase in the state gasoline tax to finance other spending.
The additional money would finance increased spending on public schools and prison construction as well as a new round of tax cuts.
Although rarely stated by ministers as a reason for privatization, the funds could be used to finance tax cuts and/or current spending.
The government in 2003 was using revenue from privatizations to finance increased spending.
Although China has more than $130 billion in foreign debt, it can draw on vast household savings to finance public spending.
Medicare payroll taxes should not be used to finance tax cuts or other spending.
