Stabilize the economic market with a proactive fiscal policy
Since the beginning of this year, my country has continued to implement a proactive fiscal policy. The policy efforts are appropriately advanced, and efforts have been made to stabilize the macroeconomic market and keep the economy operating within a reasonable range.
In the face of new challenges, it is necessary to intensify the adjustment of macroeconomic policies.
In the next step, how to promote the implementation of the new combined tax reduction and fee reduction, and make better use of the policy dividends?
How to further play the role of special bonds in stabilizing growth and investment?
Under the pressure of increasing fiscal revenue and expenditure balance, are the grass-roots "three guarantees" (guaranteeing basic livelihood, wages, and operation) effectively guaranteed?
The Economic Daily reporter interviewed Xu Hongcai, Vice Minister of Finance.
Reporter: my country has implemented a new combined tax and fee support policy this year. How is the current implementation?
How to ensure the implementation of various policies and measures?
Xu Hongcai: Tax rebates and tax reductions are key measures to stabilize the macroeconomic market.
Since the beginning of this year, the Ministry of Finance has issued more than 20 tax and fee support policies, and it is expected that the annual tax rebate and tax reduction will be about 2.5 trillion yuan.
Mainly include: the implementation of a large-scale tax refund policy, and the full refund of the existing tax credits in relevant industries.
Continue to implement the tax and fee reduction policies to support the manufacturing industry, small and micro enterprises, and individual industrial and commercial households, increase the rate of reduction and exemption, and expand the scope of application.
Introduce tax policies to support the development of industries with special difficulties.
At present, the implementation of various tax rebates, tax reduction and fee reduction policies is being accelerated.
The first is to accelerate the promotion of tax rebates.
Finance and taxation departments at all levels attach great importance to the work of tax refund for retained tax, cooperate closely, strengthen policy publicity and guidance, optimize tax refund services, improve audit efficiency, and speed up the processing of retained tax refund.
Since April 1, the tax refund for the stock of micro-enterprises and other industries has been processed, and as of April 28, a tax refund of 625.6 billion yuan has been processed.
Some tax departments receive the application in the morning, and refund the tax to the enterprise account in the afternoon, directly increasing the cash flow for the enterprise and helping the enterprise reduce the burden and bail out.
In May, we will also refund the remaining tax credits for small and medium-sized enterprises in advance, and we will also speed up the progress of tax refunds for large enterprises to ensure that the majority of the tax returns in the first half of the year.
Second, other tax support policies were implemented in an orderly manner.
In addition to the large-scale tax rebate policy newly introduced this year, the previously implemented tax rebate policy is also being processed normally and the progress has been accelerated.
At the same time, policies to further increase the incentives for manufacturing and small and micro enterprises have been introduced, such as increasing the ratio of deductions for R&D expenses for technology-based SMEs, halving the income tax for small and micro enterprises, and exempting small-scale taxpayers from value-added tax etc., are being implemented in an orderly manner.
In order to support the development of the bailout for special industries, policies such as suspending the advance payment of value-added tax by air and railway transport enterprises, and exempting taxpayers from income tax from providing public transport services have also been introduced and are being implemented rapidly.
Third, the funds needed for tax rebates, tax reductions and fee reductions are in place.
In addition to the normally arranged transfer payments, the central government has specially arranged 1.2 trillion yuan in transfer payments to support grassroots implementation of tax cuts and fee reductions and key livelihoods, of which 800 billion yuan included in the 2022 budget has been allocated to local governments, and the treasury will be increased simultaneously. Fund allocation efforts will be made to ensure local tax rebates, tax reductions and fee reductions.
As of the end of April, the local government, after filing and auditing, has distributed all the funds for subsidizing the grassroots to the city and county.
At present, the balance of local treasury funds is sufficient, which can effectively guarantee the implementation of the policy of tax rebate, tax reduction and fee reduction.
Reporter: Since the beginning of this year, in the face of unexpected factors such as the spread of the epidemic, the intensity of fiscal expenditure has further increased.
How is the current spending progress?
Which areas are you focusing on?
Xu Hongcai: Since the beginning of this year, financial departments at all levels have resolutely implemented the spirit of the Central Economic Work Conference and the measures of the "Government Work Report", maintained appropriate expenditure intensity, accelerated expenditure progress, optimized the structure of fiscal expenditure, and increased expenditure guarantees in key areas. It reflects the requirement that policy efforts should be appropriately advanced.
Specifically:
First, the progress of expenditure was further accelerated.
As of mid-April, the national general public budget expenditure was 7.24 trillion yuan, a year-on-year increase of 7.7% and 27.1% of the budget.
The progress is accelerated compared to the same period last year.
Second, key expenditures are effectively guaranteed.
Increase support for major strategies in the fields of people's livelihood and in areas such as scientific and technological research, modern agriculture, health care, and education.
As of mid-April, spending on science and technology in general public budgets increased by 20.5 percent, spending on agriculture, forestry, and water increased by 10.4 percent, spending on health and health by 8 percent, and spending on education by 7.8 percent.
Third, the expenditure on special bonds included in the government fund budget was significantly faster than that of the previous year.
In the first quarter of this year, the expenditure on new special bonds was 852.8 billion yuan, a year-on-year increase of 812.1 billion yuan.
Fourth, the role of the direct mechanism was further exerted.
The total amount of funds included in the direct scope this year is about 4 trillion yuan, an increase of nearly 1.2 trillion yuan over 2021.
As of mid-April, the central government has issued direct funds of nearly 3.7 trillion yuan, accounting for more than 90%, and all qualified funds have been issued.
More than 290,000 projects have been arranged in various places, resulting in an expenditure of about 1.2 trillion yuan.
Reporter: The society is very concerned about the role of special bonds in expanding effective investment. What is the current situation of the issuance and use of special bonds?
In the next step, what aspects will be used to better play the role of stabilizing growth and investment?
Xu Hongcai: Local government special bonds are an important tool for the government to drive investment and promote the construction of a modern infrastructure system.
After deliberation and approval by the National People's Congress, a new local government special debt limit of 3.65 trillion yuan will be set this year.
All localities conscientiously implemented the decisions and arrangements of the CPC Central Committee, acted quickly, and gave full play to the positive role of special bonds in expanding investment and stabilizing growth.
First, the quota was issued early.
In December last year, the Ministry of Finance had earlier issued a quota of 1.46 trillion yuan for new special bonds this year.
In March, the remaining quota was distributed to various places, which was significantly earlier than last year.
Second, the release rhythm is tight.
As of April 25, the provinces have cumulatively issued about 1.3 trillion yuan of special bonds, accounting for 89% of the quota issued in advance, an increase of about 1.17 trillion yuan over the same period last year.
It is expected that the issuance of most of the new special bonds will be completed in the second quarter, and will be completed in the third quarter.
The third is fast payment and use.
By the end of March, financial departments at all levels had allocated a total of 852.8 billion yuan of bond funds to project units, accounting for 68% of the newly issued special bonds.
The subsequent issuance of bonds will also step up the allocation and use in accordance with the requirement of "funds follow the project", so as to bring benefits as soon as possible.
Reporter: At present, the downward pressure on the economy is increasing, and the fiscal balance of payments is under pressure. How is the overall situation of the "three guarantees" work?
Xu Hongcai: The "three guarantees" at the grass-roots level have always been the top priority of budget arrangements and guarantees.
This year, tax rebates, tax reductions and fee reductions will have a certain impact on local fiscal revenue.
Overall, the level of financial resources at the grassroots level has been improved, the "three guarantees" expenditures have been effectively guaranteed, and various policies that benefit enterprises and the people are being implemented.
In order to ensure the implementation of policies and the "three guarantees" at the grass-roots level, the Ministry of Finance has done a lot of work together with local governments.
First, increase the intensity of transfer payment.
In 2022, the scale of transfer payments from the central government to local governments will be nearly 9.8 trillion yuan, an increase of 18% over the previous year, and the central and western regions and the grassroots will be actively tilted.
Through the implementation of transfer payments and other measures, the local general public budget expenditure increased by 8.9% over the previous year, providing financial support for the "three guarantees" at the grassroots level.
The second is to improve the incentive and restraint mechanism.
When arranging general transfer payments, the central government regards promoting and promoting the sinking of financial resources as policy goals, and rewards regions that have achieved significant results in strengthening the "three guarantees" and improving the level and balance of county-level financial resources, reflecting positive incentives.
The third is to strengthen work guidance and supervision.
Mainly to consolidate the responsibilities of local governments at all levels and urge local governments to strengthen budget management.
Finances at all levels must adhere to the priority of "three guarantees" in fiscal expenditures, take practical measures to ensure the implementation of various livelihood policies, and ensure that teachers and other key groups receive salaries and pensions on time.
County-level finance should ensure that the "three guarantees" budgets are listed in full item by item, and provincial finance should do a good job of reviewing the county-level "three guarantees" budget preparation to ensure that county-level "three guarantees" have sufficient funds to guarantee.
The fourth is to explore the establishment of a monitoring mechanism for local financial operations.
Monitoring and early warning of local budget arrangements and implementation of the "three guarantees", as well as dynamic changes in relevant factors affecting the implementation of the "three guarantees".
Provincial finance, the Ministry of Finance Supervision Bureau and the Ministry of Finance have their own monitoring priorities, so that there are no dead ends and no omissions.
Identify and rectify risks in a timely manner.
Reporter: According to recent media reports, the Chinese government bond market is the only market that has not been affected by the slump in the global fixed income market.
Why is my country's national debt market able to run smoothly?
Xu Hongcai: Recently, the global treasury bond market has become more volatile, and treasury bond yields have risen sharply.
In contrast, my country's treasury bond market operates relatively smoothly, and the yield of treasury bonds remains stable.
This mainly reflects investors' confidence in the healthy development of China's economy.
my country's economy has strong resilience and vitality, and the long-term positive fundamentals will not change.
Specifically, there are three main reasons:
First, my country's CPI growth remained low.
Generally speaking, CPI increases are positively correlated with Treasury bond yields.
Since the beginning of this year, the inflation level of many countries has risen rapidly, and the price level of the United States, euro area countries and other countries has hit new highs in many years.
my country's CPI rose moderately. In the first quarter, the CPI rose by 1.1% year-on-year, and prices remained stable, which is conducive to the stability of bond yields.
Second, my country has stepped up efforts to implement a prudent monetary policy.
The Federal Reserve started the process of raising interest rates in March this year and tightened monetary policy, driving the global interest rate level upward.
my country adheres to the principle of maintaining stability and seeking progress while maintaining stability, intensifies the implementation of a prudent monetary policy, and uses monetary policy tools such as RRR cuts to keep the growth rate of money supply and social financing scale basically in line with the nominal economic growth rate.
This has created a better environment for stable bond yields.
Third, the structure of my country's treasury bond investors is relatively stable.
Domestic institutions are the main holders of my country's national debt, and foreign investors are mostly central bank institutions, and their investment strategies are relatively stable.
Zeng Jinhua