China's central bank to provide 1 trln yuan to central budget

China's central bank plans to turn over more than 1 trillion yuan (about 158.3 billion U.S. dollars) in surplus profits to the country's central budget in 2022 to support enterprises, stabilize employment and ensure people's well-being.

The funds will mainly be used to facilitate VAT credit refunds and increase the central government's transfer payments to local governments, according to an online statement from the People's Bank of China.

The profits are mainly from the operating income on foreign-exchange reserves over the past few years, and will not increase taxes or the burden on market entities, nor will it lead to fiscal deficits.

The profits will be turned over in a balanced manner on a monthly basis, said the central bank, noting that the plan reflects the synergy between monetary and fiscal policies in stabilizing the macro economy.