"There are several keywords here, the first is national debt, the second is super long-term, the third is special, and the fourth is consecutive years."
On the afternoon of March 6, at the press conference of the second session of the 14th National People’s Congress, Director of the National Development and Reform Commission Zheng Shanjie used keywords to explain ultra-long-term special treasury bonds to Chinese and foreign reporters, “This is to respond to profound changes in the international environment and firmly grasp development. The inevitable requirement for taking the initiative is also the practical need to coordinate development and security and solidly promote high-quality development.”
Ultra-long-term special treasury bonds are a hot word in the public opinion field of this year's two sessions nationwide.
The government work report mentioned that starting from this year, it plans to issue ultra-long-term special treasury bonds for several consecutive years, specifically for the implementation of major national strategies and the construction of security capabilities in key areas. This year, 1 trillion yuan will be issued first.
To understand "ultra-long-term special treasury bonds", you really need to break down the key words.
"Treasury bonds" are best understood as government bonds issued by the state to raise financial funds.
In the past, people preferred to use its other name "Treasury Bill".
Some older people have seen the rush to buy treasury bonds. Because of their high creditworthiness and safety, treasury bonds have always been a popular investment channel for the public.
"Ultra-long-term" is also easy to understand. It generally means that the bond issuance period is greater than 10 years. Compared with ordinary treasury bonds, ultra-long-term bonds can alleviate short- and medium-term debt repayment pressures.
To put it bluntly, it means exchanging time for space, making up for financial shortcomings, and creating more possibilities for subsequent macro-control.
More importantly, this time at the national level, it is clear that ultra-long-term special government bonds will be issued "for several consecutive years", which means that fiscal expenditures are not only sustained, but also stable.
What is most worthy of interpretation is the word "special", which means that this kind of national debt not only has a special use, but also achieves a special purpose.
For example, the country’s issuance of ultra-long-term special treasury bonds has a special purpose of “dual use”: the implementation of major national strategies and the construction of security capabilities in key areas; the special purpose is to “systematically solve some problems in the process of building a strong country and rejuvenating the nation.” Funding Issues in the Construction of Major Projects”.
Dong Yu, executive vice president of the China Development and Planning Institute of Tsinghua University, said that the ultra-long-term special treasury bonds themselves are an unconventional measure. Targeting the "double" areas, they can not only stimulate current investment and consumption, solve current problems, but also focus on long-term goals. , closely integrated with the mission of Chinese-style modernization and providing strong support for high-quality development.
If you have money, you should spend it well.
From the perspective of the investment direction of national debt funds, according to the introduction of the National Development and Reform Commission, preliminary considerations will focus on supporting the construction of scientific and technological innovation, urban and rural integrated development, coordinated regional development, food and energy security, and high-quality population development.
"The potential construction demand in these areas is huge and the investment cycle is long. Existing funding channels are difficult to fully meet the requirements, and there is an urgent need to increase support."
Looking at a longer timeline, since the reform and opening up, ultra-long-term special government bonds have been taken out many times in China's fiscal toolbox, and every time they are taken out, they can solve problems and accomplish great things.
For example, in 1998, 270 billion yuan of special treasury bonds were issued to the four major state-owned banks, mainly to supplement the capital of wholly state-owned commercial banks. In 2007, 1.55 trillion yuan of special treasury bonds were issued to establish the National Foreign Exchange Investment Corporation. capital; in 2020, 1 trillion yuan of special anti-epidemic government bonds will be issued to be used for public health and other infrastructure construction and anti-epidemic related expenditures.
Judging from the results, the special national debt is indeed very powerful and has a positive impact on the stabilization and improvement of the economy for a period of time.
Taking the impressive anti-epidemic special treasury bonds as an example, trillions of new fiscal funds have reached the grassroots level of cities and counties through special transfer payment mechanisms, directly benefiting enterprises and the people. They are mainly used to protect employment, basic people's livelihood, and market entities. This includes supporting tax cuts and fee reductions, rent reductions and interest rate reductions, and expansion of consumption and investment.
It benefits both the present and the long-term.
It can be said that concentrating our efforts, intensifying our efforts, and continuing to work hard to solve major and difficult problems over a long period of time are the starting point and the goal of ultra-long-term special national debt.
Produced by "Sanlihe" Studio
Source: China News Service WeChat official account