(The two sessions will observe) Why does China plan to increase the deficit rate to more than 3.6%?
China News Agency, Beijing, May 22 (Reporter Li Xiaoyu) The government work report released on the 22nd proposed that China's fiscal deficit rate in 2020 is planned to be set at more than 3.6%, exceeding the level of 2.8% last year.
The reason for the sharp increase in the deficit rate is to hedge the downward pressure on the economy caused by the epidemic and to alleviate the need for fiscal revenue and expenditure conflicts.
On May 22, the third session of the 13th National People's Congress opened in the Great Hall of the People in Beijing. China News Agency reporter Han Haidan
At present, the spread of the global new coronary pneumonia epidemic is still continuing. There is great uncertainty as to when it can be contained and when the world economy can be "unlocked." The Chinese economy and fiscal revenue are therefore under considerable pressure.
According to official data, China's general public budget revenue in the first four months of this year was 621.33 billion yuan (RMB, the same below), a year-on-year decrease of 14.5%; while expenditures during the same period were as high as 739.6 billion yuan, with a gap of over one trillion yuan. Chinese Finance Minister Liu Kun previously admitted that the general public budget revenue for 2020 will be lower than the previous year.
Considering that tax cuts and fee reductions will be further increased, the fiscal revenue gap will widen further. The government work report made it clear that this year, the system of lowering the value-added tax rate and corporate pension insurance rate will continue to be implemented, with a new tax cut and fee reduction of about 500 billion yuan. In addition, the implementation period of the tax reduction and fee reduction policy due before June was extended to the end of this year, and the income tax payment of small and micro enterprises and individual industrial and commercial households will be postponed to next year. yuan.
In addition, steady growth and the need to make up for shortcomings will also exacerbate the fiscal revenue and expenditure conflicts. Whether it is to stabilize employment, protect people's livelihood, eat the last "hard bone" of poverty alleviation, or expand investment, help new infrastructure and new urbanization construction, or encourage consumption through the issuance of consumer coupons, etc. Real gold and silver. "
Under this circumstance, raising the deficit rate and increasing the scale of the deficit is what the proactive fiscal policy should be more proactive and meaningful, and it is of great significance for stabilizing and boosting market confidence.
The deficit rate is planned to be above 3.6%, which is also enough to "quench thirst."
The government work report proposed that this year it plans to arrange 3.75 trillion yuan for local government special bonds, an increase of 1.6 trillion yuan over last year, and 1 trillion yuan for special national debt. In addition, the central government's expenditure arrangements at the current level have a negative growth, and non-rigid expenditures that are not urgently needed are reduced by more than 50%; all kinds of surpluses and deposited funds should also be collected and rescheduled. Combining factors such as special bonds, special national bonds, and revitalization of stock funds, the deficit scale increased to more than 3.6% and the scale of funds reached has been able to meet the needs.
It is necessary and necessary for China to increase the deficit rate.
China has always been very cautious about raising the deficit rate. According to official data, the Chinese government's debt ratio is only 38.5% in 2019, far below the 60% international warning line; the deficit rate of more than 3.6% is not high compared with major economies.
For example, the largest fiscal policy package in the history of the United States has hit a scale of 2.2 trillion US dollars. If calculated in terms of 2019 GDP, the US fiscal deficit rate will reach 14% this year. The German Ministry of Finance predicts that the German public deficit rate will reach 7.25% this year.
Considering the above factors comprehensively, China ’s deficit rate increased to more than 3.6% this year, which is active enough and stable, leaving room for follow-up macro-control. (Finish)