(Observation of the two sessions) There are multiple considerations for reducing China's deficit rate to about 3.2%

　　China News Service, Beijing, March 5 (Reporter Li Xiaoyu) The government work report released on the 5th stated that China's fiscal deficit rate in 2021 is planned to be around 3.2%, which is lower than last year's "3.6% or more", and no longer Issue special treasury bonds to fight the epidemic.

　　The reason for this adjustment is that the Chinese economy is gradually overcoming the impact of the epidemic and speeding up its recovery.

　　Nowadays, China has not only become the only major economy in the world that has achieved positive growth, it has also reached a record high in its total economic volume and its share in the world economy. The economic situation is very different from this time last year.

In view of this, some temporary emergency measures should naturally be withdrawn in due course.

　　But at the same time, there is still uncertainty about when the global epidemic will usher in an "inflection point" and whether the momentum of world economic recovery can be maintained. In addition, the changes unseen in a century are accelerating, and there are still many risks and challenges in China's economic development in the future.

　　Taking into account that tax cuts and fee reductions will continue, there will still be a gap in fiscal revenue this year.

According to the government work report, not only will the implementation period of some phased policies such as small-scale taxpayers' value-added tax concessions be extended, but also new structural tax reduction measures will be implemented, including the monthly sales of the VAT threshold for small-scale taxpayers. The amount of 100,000 yuan (RMB, the same below) will be increased to 150,000 yuan. For small and micro enterprises and individual industrial and commercial households whose annual taxable income is less than 1 million yuan, the income tax will be halved on the basis of the current preferential policies.

　　In addition, the total scale of fiscal expenditures will also increase over last year.

Whether it is to stabilize growth, protect people's livelihood, expand effective investment, stabilize and expand consumption, and promote the effective connection of poverty alleviation and rural revitalization, it requires continuous financial provision of "real money".

　　Under this circumstance, a slight reduction in the deficit rate is a manifestation of the continuity, stability, and sustainability of the macroeconomic policy, and the absence of a "swift turn". It can not only reserve space for subsequent macroeconomic control, but also help stabilize market expectations and strengthen Market confidence has injected impetus into China's economy to "resurrect with blood" after weathering the impact of the epidemic.

　　The deficit rate is planned to be around 3.2%, which is also sufficient to provide necessary support for enterprises to increase their vitality.

　　The government work report clearly stated that it is necessary to establish a normalized direct fiscal fund direct mechanism and expand the scope, including 2.8 trillion yuan of central fiscal funds into the direct mechanism, and the scale is significantly larger than last year.

It is planned to allocate 3.65 trillion yuan in local government special bonds and 610 billion yuan in investment in the central budget.

In addition, the central government will continue to arrange for negative growth in expenditures to further substantially reduce non-urgently needed non-rigid expenditures. Governments at all levels must insist on staying tight.

　　Under this circumstance, the amount of funds provided by the deficit rate of about 3.2% is sufficient to meet market needs.

　　Taking the above factors into consideration, this fiscal policy adjustment takes into account the needs and possibilities of all aspects, and will help the Chinese economy "always".

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