China News Service, Beijing, August 27 (Reporter Zhao Jianhua) The Ministry of Finance of China announced on the 27th the "Report on the Implementation of China's Fiscal Policy in the First Half of 2021" (hereinafter referred to as the report).
The report stated that in the first half of the year, the economy was stabilizing and strengthening and stabilizing and improving.
Fiscal revenue has shown restorative growth, and expenditures in key areas such as people's livelihood have been strongly guaranteed.
Continue to promote tax and fee reductions to stimulate the vitality of market players.
It is estimated that this year will reduce the burden of market entities by more than 700 billion yuan (RMB, the same below).
In the first half of the year, the national general public budget revenue increased by 21.8% year-on-year and 8.6% year-on-year.
Fiscal revenues in various regions have generally rebounded.
The economic recovery has driven rapid growth of tax revenues, and the main tax categories and taxes in most industries have basically recovered or significantly exceeded their pre-epidemic levels.
In the first half of the year, the national general public budget expenditure increased by 4.5% year-on-year, maintaining a strong expenditure intensity.
In the meantime, we strengthened the employment priority policy, highlighted people's livelihood, continued to bail out market players, optimized and upgraded the industrial chain supply chain, increased the scale of transfer payments from the central government to local governments, and ensured the bottom line of the "three guarantees" at the grassroots level.
As of the end of June, direct funds from the central government had issued 2.59 trillion yuan.
According to incomplete statistics, more than 70% of the total direct fund expenditure in the first half of the year was used for basic people's livelihoods such as local pension, compulsory education, basic medical care, and basic housing.
In terms of supporting market entities, the accumulated expenditures of relevant corporate-benefit funds exceeded 270 billion yuan, benefiting nearly 580,000 market entities of various types.
This year, China will no longer issue special treasury bonds to fight the epidemic.
The Ministry of Finance reasonably controls the scale and pace of issuance of national debt (referring to domestic debt, the same below).
In the first half of the year, the actual issuance of government bonds was 2.8169 trillion yuan, a year-on-year increase of 10.8%.
The scale of local government special bonds was moderately reduced.
Local governments are strictly prohibited from increasing hidden debts in the form of corporate bonds.
Regarding the outlook for fiscal policy, the report stated that we will adhere to a proactive fiscal policy to improve quality and efficiency and be more sustainable, maintain the continuity, stability, and sustainability of fiscal policy, and make overall plans for fiscal policy convergence in the next two years.
Further implement the normalized direct fiscal fund mechanism.
Appropriately speed up the issuance of local government special bonds, make good use of local government special bond funds, guide local governments to strengthen project reserves, and promote the formation of physical workloads at the end of this year and early next year.
We will implement the policy of fine-grained tax and fee reduction, intensify the rectification of various types of illegal charges related to enterprises, and resolutely refrain from charging "excessive taxes and fees."
At the same time, strengthen the overall planning of financial resources and strengthen the financial guarantee for major national strategic tasks. Guarantee and improve people's livelihood, and continuously improve people's sense of gain and happiness. Promote innovative development and industrial upgrading, and ensure the stability of the industrial chain and supply chain. Actively prevent and resolve risks in key areas and promote sustainable fiscal development. Strengthen supervision and accountability, and continue to focus on preventing and dissolving hidden debt risks of local governments. Deepen the reform of the fiscal and taxation system, improve the local tax and direct tax system, steadily promote the reform of the consumption tax collection of some items after the shift, and steadily subdivide the local government. (over)