(Economic Observation) New fiscal funds go directly to the grassroots of cities and counties. China's active fiscal policy has shown results
China News Service, Beijing, October 22 (Reporter Zhao Jianhua) The Executive Meeting of the State Council of China (hereinafter referred to as the meeting) held on the 21st requested that the direct mechanism of fiscal funds be further implemented and the effectiveness of active fiscal policies can be better brought into play.
The meeting pointed out that the implementation of a direct mechanism for fiscal funds to promote the rapid implementation of large-scale relief policies has continued to show results.
Funds go directly to the grassroots, effectively supplementing local financial resources to ensure that tax and fee reductions are in place, and it has strongly supported the employment of residents, market players, and basic people's livelihood. It has supported the construction of major projects and poverty alleviation, ensuring the normal operation of grassroots.
In the first three quarters, new tax and fee reductions exceeded 2 trillion yuan (RMB, the same below).
The implementation of large-scale relief policies and direct mechanisms has saved hundreds of millions of market players, supported nearly 9 million new jobs in cities and towns, and played a key role in the recovery of economic stability.
According to the statistics of the direct fund monitoring system of the Ministry of Finance of China, as of September 30, among the 1.7 trillion yuan of new fiscal funds under direct management, all localities have allocated 1.566 trillion yuan of direct funds to fund users, forming actual expenditures 1021.4 billion yuan, accounting for 61.2% of the local funds allocated by the central government.
If all expenditure calculations are completed by the end of the year according to the issued time, the expenditure progress has been 11.2 percentage points higher than the order schedule.
According to Liu Jinyun, director of the Treasury Payment Center of the Ministry of Finance, among the funds that have been disbursed, grass-roots expenditures in cities and counties totaled 996.1 billion yuan, accounting for 97.5%, reflecting the policy effectiveness of funds directly reaching the grassroots.
Among them, the city-level expenditure was 155.8 billion yuan, accounting for 15.2%; the county-level expenditure was 840.3 billion yuan, accounting for 82.3%.
Provincial expenditures amounted to 25.3 billion yuan, accounting for 2.5%, mainly due to pension insurance subsidies and inclusive financial funds to key guarantee enterprises in accordance with provincial overall planning requirements.
Fiscal funds go directly to the grass-roots level in cities and counties, which is an innovation in China's fiscal management.
Li Xuhong, director of the Institute of Finance and Taxation Policy and Application of Beijing National Accounting Institute, analyzed that affected by the epidemic, some grassroots financial difficulties this year.
However, they are the closest to market players and people's livelihood. The new fiscal funds go directly to the grassroots and supplement the county and city governments, and the effect of fiscal funds will be better.
Li Xuhong said that the data fully shows that direct funding plays an important role in alleviating the pressure on grassroots finances and promoting the development of the local economy, which can alleviate urgent needs.
During the period, the efficiency of financial management improved, the flow of funds was smooth, and the implementation of proactive fiscal policies produced good timeliness.
The scope of use of direct funds is clear, and they are mainly used to benefit enterprises and the people. Each use of funds is aimed at grassroots difficulties, strengthens the security function of local finances, and helps "six stability" and "six guarantees."
The State Council executive meeting held on the 21st pointed out that the next step is to focus on the completion of the main goals and tasks for the development of the year, maintain the continuity and effectiveness of the macro policy, continue to implement the direct mechanism, and improve the efficiency of capital use.
At the same time, sum up the practice of this year, study the establishment of a normalized direct mechanism for fiscal funds, and improve the efficiency of fiscal funds through reforms to better serve the overall situation of economic and social development.
Expand the scope of direct funds, better support the operation of the grassroots level, improve the management of direct funds, and improve supervision.
Li Xuhong believes that, next, we should continue to do a good job in direct fund management, keep a close eye on the use of direct fund expenditures, strengthen direct fund monitoring, promote a strong, effective and safe direct mechanism to prevent "fishing in troubled waters" and ensure good use of funds.
(Finish)