A proactive fiscal policy should improve quality and efficiency and be more sustainable (authoritative interview·take the first step and see the new atmosphere ⑥)

——Interview with Liu Kun, Minister of Finance

　　Our reporter Qu Zhehan

　　The Central Economic Work Conference proposed that a proactive fiscal policy should improve quality and efficiency, be more sustainable, maintain a moderate expenditure intensity, strengthen financial support for major national strategic tasks, and take the initiative in promoting technological innovation, accelerating economic restructuring, and adjusting income distribution. To effectively resolve the hidden debt risks of local governments, the party and government agencies must persist in living a tight life.

　　To build a new development pattern in 2021, we must take the first step and see the new climate. How should we better play the role of fiscal functions?

The reporter interviewed Liu Kun, Minister of Finance.

Accurate and scientific policy, not make a sharp turn, maintain a certain degree of tax and fee reduction

　　Reporter: How do you understand the "proactive fiscal policy should improve quality and efficiency, and be more sustainable" proposed by the Central Economic Work Conference?

　　Liu Kun: "Improving quality and efficiency" mainly focuses on optimizing the structure and strengthening management, further improving the policy implementation mechanism, and effectively improving policy efficiency and capital efficiency.

　　On the one hand, it is necessary to establish and implement a normalized direct fiscal fund mechanism to improve the efficiency of fiscal expenditure.

On the other hand, it is necessary to focus on saving resources and enriching the people, and implement the requirements of "Tight Life"; at the same time, it is necessary to speed up the establishment of a comprehensive budget performance management system that covers the whole process, so that money must be accountable for effectiveness and invalidity.

　　"More sustainable" mainly means that the scale of expenditure and the intensity of policies must remain basically stable, leaving room for policy operations to deal with new risks and challenges that may arise in the future.

　　We will take into account the needs of stable growth and risk prevention, reasonably determine the deficit rate and the scale of local government special bonds, maintain a moderate expenditure intensity, and maintain the macro leverage ratio basically stable.

At the same time, we will increase budget coordination, strengthen financial support for major national strategic tasks, and support local governments to do a solid job of "six stability" and fully implement the "six guarantees" tasks.

　　At present, the world economic situation is still complicated and severe, the recovery is unstable and uneven, and various derivative risks caused by the impact of the epidemic cannot be ignored.

This requires that macro-policies should not be turned sharply. It is necessary to review the situation, grasp the timing, implement precise policies, maintain a certain degree of strength, consolidate and expand the results of epidemic prevention and control and economic and social development, and promote the construction of a new development pattern to take the first step and see the new atmosphere.

　　Reporter: The Central Economic Work Conference requires the improvement of tax and fee reduction policies. How will the finance department implement this requirement?

　　Liu Kun: In 2020, in the face of severe and complex situations, in the face of difficult fiscal revenues and expenditures, my country has successively issued and implemented 7 batches of 28 tax and fee reduction policies, and it is expected that more than 25,000 tax and fee reductions will be added throughout the year. 100 million yuan.

　　In the next step, the Ministry of Finance will comprehensively consider the financial affordability and the need to implement policies to help companies to relieve difficulties, maintain a certain degree of tax reduction and fee reduction, and continue to implement institutional tax and fee reduction policies.

　　It should be noted that many of the tax and fee reduction policies we have implemented in recent years are institutional and continuous, and the cumulative effect will become greater and greater, and the burden reduction of enterprises will become more and more obvious.

The financial department will resolutely reduce the tax cuts to be in place and reduce the fees that should be cut to the place to help enterprises go lightly and develop better.

Expand the scope of "direct funds" and firmly establish the bottom line of basic people's livelihood

　　Reporter: In 2020, the 2 trillion yuan direct fund has achieved remarkable results in benefiting enterprises and people. Will this model continue to be used in 2021?

　　Liu Kun: The implementation of a direct fiscal fund mechanism is a major decision and deployment made by the Party Central Committee and the State Council, and it is also a major innovation in fiscal macro-control methods.

As of December 29, 2020, 1.52 trillion yuan of direct funds have been put into use.

The direct mechanism is "one rod to the end", and it only takes 20 days for financial funds to reach the grassroots level of cities and counties from the central government, and the investment direction is more accurate, and the grassroots need to be used.

　　In 2021, the Ministry of Finance will promote the formation of a normalized institutional arrangement, including general transfer payments that are directly used for grassroots financial security, the transfer payment of central to local common fiscal power that can be directly distributed at the beginning of the year, and qualified special transfer payments. At the same time, it promotes the whole process, the whole chain and all-round monitoring, promotes the direct mechanism to be embedded in the budget management process, and effectively improves the efficiency of the use of financial funds.

　　Reporter: In 2021, what measures will the finance department take to ensure the basic livelihood of the people?

　　Liu Kun: The people's livelihood is no small matter.

No matter how much pressure on fiscal revenues and expenditures, we must resolutely protect people's livelihood expenditures.

In 2021, the financial department will continue to firmly establish the bottom line of basic people's livelihood: it is necessary to coordinate the use of various types of funds such as employment subsidy funds, increase employment assistance for key groups, promote stable employment basics, and let "work have income." More secure; increase financial investment in education, optimize expenditure structure, so that "learning and education" can achieve higher quality development; promote the national overall planning of basic pension insurance for enterprise employees, improve the management of national social security funds, etc. "Be more confident; appropriately raise the per capita financial subsidy standard for urban and rural residents' medical insurance, strengthen the ability to deal with sudden and major infectious diseases, and make "the disease can be treated" to a higher level, and so on.

　　In the process of strengthening basic people’s livelihood protection, we will actively work to ensure that people’s livelihood expenditures are coordinated with economic development and match the financial situation, so that people’s livelihood protection will extend into the future.

　　Reporter: In 2021, how will the financial department make efforts to consolidate the results of poverty alleviation and effectively connect with rural revitalization?

　　Liu Kun: General Secretary Xi Jinping pointed out that getting rid of poverty is not the end, but the starting point for a new life and new struggle.

In 2021, the financial department will not slack off or slack off, and strive to write three articles on "stability, consolidation, and improvement".

　　Stability-During the transition period, maintain the overall stability of the fiscal support policy and the scale of funds, and on this basis, rationally arrange the scale of fiscal investment, optimize the expenditure structure, and provide a guarantee for the connection.

　　Consolidation-focus on consolidating and expanding poverty alleviation achievements in areas with heavy tasks and poor rural revitalization foundations, focusing on supporting the consolidation of poverty alleviation results in the western region, and giving appropriate support to the national rural revitalization key counties identified by the central government.

　　Promotion-Gradually increase the proportion of relevant financial agriculture-related funds used in industrial projects to stimulate the endogenous motivation of farmers for self-development.

Put a "tightening curse" on local government debt to better play the role of bond capital investment

　　Reporter: In 2021, what other policy measures will the Ministry of Finance take to prevent and resolve the risk of local government debt?

　　Liu Kun: As of the end of November 2020, the balance of local government debt is 25.5595 trillion yuan, which is within the limit approved by the National People's Congress. The risk of local government debt is generally controllable.

　　At the same time, we have also noticed that some regions are still adding hidden debts, and the debt repayment risk in some regions has increased.

In this regard, the Ministry of Finance will take strict precautions and proactive responses to effectively put debt risks in a cage.

　　One is to open the "front door".

Keep the macro leverage ratio basically stable, reasonably determine the scale of government debt, and the local government debt limit in different regions, to meet the needs of countercyclical adjustment of fiscal policy and fiscal sustainability.

　　The second is to block the "back door."

It is strictly forbidden for local governments to raise debts in violation of laws and regulations or in disguised forms in various names, to address hidden debt risks of local governments, to effectively move forward the risk prevention and control threshold, and to resolutely stop raising debts in violation of laws and regulations.

　　The third is to improve management.

In accordance with the principle of "funds follow the project", local governments are guided to focus on key areas, improve the performance of bond funds, and give better play to the economy.

　　The fourth is to strengthen supervision.

Local governments and financial institutions have found out, investigated and dealt with, and held accountable for the illegal financing activities of local governments and financial institutions.

　　The fifth is to promote openness.

Supervise the local governments to steadily promote the "sunshine" of local government debt, give better play to the public's supervisory role, and promote the formation of a market-oriented, legal-based financing self-discipline and restraint mechanism.

　　Adding a circle of "tightening curse" to local government debt will create an additional "safety valve" for economic and social development.

In this regard, we will definitely persevere, consistently, and leave no trouble.