(Economic Observation) China continues to implement a proactive fiscal policy: pay more attention to precision and sustainability
China News Service, Beijing, December 11 (Reporter Zhao Jianhua) The Central Economic Work Conference proposed that China will continue to implement proactive fiscal policies next year: improve efficiency, and pay more attention to precision and sustainability.
Implement new tax and fee reduction policies to strengthen support for small, medium and micro enterprises, individual industrial and commercial households, manufacturing, and risk mitigation.
It is necessary to ensure the intensity of fiscal expenditures, accelerate the progress of expenditures, and implement new tax and fee reduction policies. More importantly, it is necessary to resolutely curb new hidden debts of local governments.
According to Yang Zhiyong, deputy dean of the Institute of Financial Strategy of the Chinese Academy of Social Sciences, the intention to protect market players, support small, medium and micro enterprises, manufacturing, and prevent risks is obvious.
The change in fiscal operating pressure next year will depend on economic performance.
The government still has to live a tight life, but as long as the macro policies are in place and the market vitality is fully released, the finances can maintain normal operations.
To implement a proactive fiscal policy, "whatever should be spent has to be spent."
Qiao Baoyun, dean of the China Institute of Public Finance and Policy of the Central University of Finance and Economics, said that key expenditures on education, social security and employment, science and technology, energy conservation and environmental protection must be guaranteed. This is called "good steel is used on the blade."
To implement a proactive fiscal policy, "whatever should be lowered must be lowered."
In recent years, China has continued to reduce taxes and fees, stimulating the vitality of market players.
In the first three quarters of this year, the nationwide new tax cuts and fees of 910.1 billion yuan, 70% of small and micro enterprises with income from operating activities do not need to pay taxes.
Next year, we will continue to implement new tax and fee reductions for market entities to help them, especially small, medium and micro enterprises, and individual industrial and commercial households, to relieve their burdens, relieve difficulties, and resume development.
Qiao Baoyun said that this is called putting water to raise fish.
Faced with the triple pressures of shrinking demand, supply shocks, and weakening expectations, China's tax cuts and fees will be more precise next year.
Li Xuhong, director of the Institute of Finance and Taxation Policy and Application of Beijing National Accounting Institute, analyzed that tax reduction and fee reduction have been expanded from small and micro enterprises to small, medium and micro enterprises, covering a wider range and helping market entities cope with current difficulties on a larger scale.
At the same time, increasing support for "specialized, specialized, innovative" small, medium and micro enterprises will help promote high-quality economic development.
Although tax cuts and fee cuts have continued for many years, the effect will not diminish.
Tang Jiqiang, chief researcher of the West Finance Think Tank of Southwestern University of Finance and Economics, believes that the effects of tax cuts and fee reductions will be superimposed, continue to stimulate market confidence, and help market entities cope with uncertainty.
Overcoming difficulties, while small and medium-sized enterprises solve a large number of jobs, many enterprises will grow into innovative enterprises and play an important role in the future economic development.
However, continued tax cuts and fee reductions are bound to affect the government's financial resources in some areas.
Yang Zhiyong said that it is possible to increase transfer payments, promote the sinking of financial resources, and support grassroots governments to implement policies to help enterprises and to ensure basic people's livelihood and wage insurance operations.
From a static perspective, it is necessary to ensure the intensity of fiscal expenditures and reduce taxes and fees, which will increase government debt.
Qiao Baoyun emphasized that, from a dynamic point of view, the promotion of high-quality economic development through precise tax cuts and fees, and precise expenditures will bring more taxes, form a virtuous circle, and achieve fiscal rebalancing.
Speaking of government debt, Qiao Baoyun said that national debt and local government general bonds and special bonds are all visible and the risks are controllable.
Taking special debt as an example, it has played an important role in driving the expansion of effective investment and maintaining the stable operation of the economy.
What needs to be guarded against is the hidden debt of local governments.
Hidden debt is opaque, irregular, not permitted by law, and exposed to many risks. "I don't even know who borrowed the money."
Through the coordination and linkage of fiscal policy and monetary policy, the organic combination of cross-cyclical and counter-cyclical macro-control policies can ensure that the economy continues to operate within a reasonable range.
Li Xuhong believes that continuing to implement a proactive fiscal policy and a prudent monetary policy will help resolve current pressures and maintain the resilience of economic development.
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