(Observation of the Two Sessions) Quick Reading of the Government Work Report China Shows Determination and Confidence in Steady Growth

  China News Agency, Beijing, March 5th: Speed-reading the government work report, China shows determination and confidence in stable growth

  China News Agency reporter Zhou Rui

  Chinese Premier Li Keqiang delivered a government work report to the Fifth Session of the 13th National People's Congress on the 5th.

  The details of the report show China's determination and confidence in stabilizing growth.

 The first is that the economic growth target is locked at medium and high speed.

  In 2021, China's economy will encounter triple pressures of demand contraction, supply shock, and weakening expectations.

Although China's economic growth rate reached 18.3% and 7.9% in the first and second quarters, after entering the second half of the year, China's economic growth rate fell to 4.9% in the third quarter and 4.0% in the fourth quarter.

  The government work report set the expected target of China's GDP growth rate in 2022 at around 5.5%.

  This move will send a clear signal to the market: China is determined and confident to stop the downward momentum of economic growth.

  And this kind of determination and confidence itself can also effectively hedge against the pressure of weakening expectations and provide assistance for stable growth.

  The second is a significant increase in available financial resources.

  The government work report's deployment of fiscal policy also conveys China's determination and confidence.

  This year's fiscal deficit rate is planned to be around 2.8%, down from last year.

This is also the first time that China's deficit ratio has been lower than 3% since the outbreak of the epidemic in 2020.

  This move is not only conducive to enhancing fiscal sustainability, but also shows China's confidence: at the same time, it is able to plan ahead and reserve policy space for future changes in the situation.

  On the other hand, in the face of the pressure of epidemic prevention and control in 2020 and the launch of special national debt, China has once again launched powerful policy tools this year.

  On the basis that the fiscal revenue is expected to continue to grow, the scale of expenditure can be expanded by more than 2 trillion yuan (RMB, the same below) compared with last year through measures such as turning over the profits accumulated in recent years by specific state-owned financial institutions and specialized institutions, and transferring into the budget stabilization fund. .

  This money will play an important role in helping enterprises to bail out, stabilizing employment and ensuring people's livelihood, promoting consumption and expanding demand.

 The third is to continue to significantly reduce taxes and profits.

  After years of substantial tax cuts and fee reductions, the market is worried about whether there is room for further tax cuts in China.

  Today's government work report gives a clear response.

  China will implement both tax reduction and tax rebate, and implement a new combined tax and fee support policy.

  It is estimated that the annual tax rebate will be about 2.5 trillion yuan, of which about 1.5 trillion yuan will be retained for tax rebates, and all tax rebate funds will go directly to enterprises.

  This policy will undoubtedly help the company in a timely manner and help the company to regain its vitality.

  At the same time, China's determination to stabilize market players and ensure employment will further boost market confidence and enhance economic vitality.

(over)

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