(Combating New Crown Pneumonia) CDB proposes more proactive fiscal policy
China News Agency, Beijing, March 24th. The CCB submitted a proposal to the National Committee of the Chinese People's Political Consultative Conference recently, recommending that while continuing to do a good job in the prevention and control of the new crown pneumonia epidemic, in accordance with the ideas of macro-risk avoidance, meso-focus and micro-activation, Effective measures to ensure the continued sound development of China's economy.
The proposal pointed out that China's economy has tremendous resilience and potential, and the impact of the epidemic on economic operation is only short-term and phased. The long-term positive trend of the economy will not change.
In order to help the Chinese economy overcome the current difficulties and risks, the CDB has proposed a more proactive fiscal policy. The measures are as follows:
The first is to moderately increase the fiscal deficit rate and further relax market access. It is suggested to consider increasing the scale of special bonds or issuing special treasury bonds after the epidemic; investment in fixed assets can appropriately increase the scale of new infrastructure investment such as 5G, artificial intelligence, and the Internet of Things.
The second is to do a good job with SMEs and employment as the focus. It is recommended to set up SME relief funds at all levels of government; find out the main cost burden of private enterprises, and study and formulate clear reduction and exemption policies and distribution measures.
The third is to maintain China's core position in the global main product supply chain. The government and enterprises will jointly explore the establishment of a strict "green zone factory" system to isolate the impact of the epidemic on the production and export of key enterprises. It is recommended that the government subsidize protective equipment and establish a system and supervision standards.
Fourth, the traditional subsidies for automobiles or home appliances are no longer adapted to the current situation. From the supply side, it is possible to improve the consumption environment and the residents ’willingness to consume through individual tax reductions, deferred or discounted consumption taxes.
As a participating party that is closely connected with the economic circle, China National Construction Engineering Corporation puts forward on the basis of in-depth investigations of member companies to provide enterprises with flexible and loose operating space. For example: Encourage enterprises to reduce labor costs by adjusting salary, rotating shifts, shortening working hours, etc .; while implementing the paid vacation system for employees, allow enterprises to reasonably arrange extended holidays, and provide financial subsidies to "retain and pay" enterprises.
The proposal also proposes that certain insurance subsidies be given to those who are unemployed as a result of the epidemic, and that companies that insist on not layoffs during and after the epidemic should give certain concessions in the proportion of social insurance premiums and the time limit for payment.
The CDB stated that it is not possible to slow down the pace of established reforms due to the epidemic situation. We must firmly adhere to the direction of market-oriented capital market reforms. (Finish)