(Observation of the two sessions) China's deficit rate declines and the spending market continues to expand
China News Agency, Beijing, March 5 (Reporter Zhao Jianhua) China, which implements a proactive fiscal policy, plans to arrange a deficit rate of about 2.8% this year.
"Stability at the forefront and making progress while maintaining stability", taking into account the current and long-term, development and security, in a complex environment, China has become more and more proficient in the control of fiscal policy.
China's proactive fiscal policy has been implemented for 13 consecutive years.
Luo Zhiheng, chief economist of Yuekai Securities and dean of the research institute, said that since the implementation of the active fiscal policy, the connotation of the policy has been continuously expanded, the implementation methods have been gradually enriched, and the effect has been gradually improved.
To judge the activeness of fiscal policy, it depends not only on the deficit rate and scale of deficit, but also on whether it can meet the needs of the economic and social situation, whether the fiscal coordination capacity is improved, whether the direction of expenditure is optimized, and whether the efficiency and performance of expenditure are improved.
The deficit rate was 2.8%, down 0.4 percentage points from last year, and the scale of funds decreased by 200 billion yuan (RMB, the same below).
However, with the help of the transfer of budget stabilization funds and other means, the scale of fiscal expenditure has expanded by more than 2 trillion yuan compared with last year.
The government's available financial resources have increased significantly, and the intensity of fiscal expenditure is guaranteed.
The deficit ratio of 2.8% is comparable to the level in 2019 before the epidemic.
According to Quartz Hua, director of the Macroeconomic Research Center of the Chinese Academy of Fiscal Sciences, in recent years, local finances have been in a tight balance.
In some places, especially in cities and counties, the contradiction between fiscal revenue and expenditure is prominent.
It is difficult for local fiscal revenue to continue the high growth trend.
The deficit ratio will be reduced, and the local financing cost and interest burden will also be reduced.
As the economy continues to recover, maintaining a reasonable and appropriate level of deficit ratio will help enhance fiscal sustainability and provide more space for the private economy.
The deficit rate is 2.8%, which is an arrangement made under the expected continuous growth of fiscal revenue.
Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of the National Accounting Institute in Beijing, analyzed that this arrangement is conducive to rationally arranging the scale of debt and effectively preventing and resolving risks.
Expanding the scale of fiscal expenditure by more than 2 trillion yuan will drive enterprise investment, create jobs, and improve residents' income levels, thereby expanding total social demand, boosting economic growth, and effectively coping with the current downward pressure on the economy.
While the deficit rate is planned to be around 2.8%, China also plans to arrange 3.65 trillion yuan in local government special bonds this year, the same as last year.
Li Xuhong said that the issuance of local government special bonds will not only help meet local financing needs and ensure the completion of key projects and major tasks, but also stimulate effective investment and stabilize the macroeconomic market by expanding government spending.
The issuance scale of local government special bonds remained unchanged.
Quartz Hua said that this will not increase the pressure on local debt repayment.
Strengthen the performance orientation, adhere to the principle of "funds follow the project", reasonably expand the scope of use, support the follow-up financing of projects under construction, and start a batch of qualified major projects, new infrastructure, renovation of old public facilities and other construction projects.
Give full play to the role of major projects and government investment leveraging, and fully mobilize the enthusiasm of private investment.
By making up for weaknesses, strengths and weaknesses, and improving the marginal effect of investment, special bonds can drive the expansion of effective investment.
The 2.8% deficit rate and the 3.65 trillion yuan of special local government bonds not only maintain the necessary expenditures to support economic recovery and development, but also reserve policy space to deal with possible future risks and challenges.
Luo Zhiheng believes that while China has cut taxes and fees on a large scale, it has ensured the intensity of fiscal expenditures, and promoted stable and healthy economic development and social stability.
Facing the complex situation in the future, fiscal policy should pay more attention to sustainability.
(over)