China Economic Cultural Industry
2020 is the year when a well-off society will be built in an all-round way and the “13th Five-Year Plan” will end. It is also a year when poverty alleviation will be resolutely defeated. It is of great significance for budget preparation and fiscal work. A few days ago, the implementation of the central and local budgets for 2019 and the draft central and local budgets for 2020 were officially announced. The draft systematically elaborated on the implementation of major fiscal and taxation policies and key fiscal work in 2019, as well as the 2020 central and local budget drafts.
Coordinator: Cheng Qi
Editor: Wei Jinjin
On the morning of May 24, the Financial and Economic Committee of the 13th National People’s Congress convened a plenary meeting. Based on the preliminary review and the review opinions of various delegations and relevant special committees, the 2020 plan report, plan draft, budget report and The draft budget for further review. On the basis of full discussion, the meeting passed the “Report on the Review Results of the Implementation of the Central and Local Budgets in 2019 and the Draft Central and Local Budgets in 2020” by the Finance and Economic Committee, and decided to submit the report to the Presidium of the Conference.
The Finance and Economic Commission believes that the implementation of the central and local budgets in 2019 is generally good. The 2020 central and local budget drafts proposed by the State Council focus on the goal and task of building a well-off society in all respects, and coordinate the promotion of epidemic prevention and control and economic and social development. , A proactive fiscal policy must be more proactive, insist on the government to take the lead, adjust and optimize the expenditure structure, strengthen the protection of expenditures in key areas, increase the protection of local finances, fully implement budget performance management, and prevent and resolve debt risks. The draft budget is in line with the spirit of the Central Economic Work Conference, in line with the Party Central Committee’s decision and deployment on the overall promotion of epidemic prevention and control and economic and social development, and in line with the provisions of the Budget Law, and is generally feasible.
Positive progress has been made in fiscal reform and development in 2019
The draft pointed out that in 2019, the financial department will step up efforts to improve efficiency and implement proactive fiscal policies, increase support in key areas, accelerate the reform of the fiscal and taxation system, and continuously improve the level of fiscal management.
Among them: In terms of tax reduction and fee reduction, private enterprises have reduced taxes by 1.26 trillion yuan in total, accounting for 65.5% of the total tax reduction. Small and micro enterprises reduced taxes by 283.2 billion yuan.
State Administration of Taxation
In terms of poverty alleviation, the central government subsidized local special poverty alleviation funds of 126.1 billion yuan, an increase of 18.9%, and further inclined to the “three regions and three states” and other deeply impoverished areas. Continue to implement the incentive policies for ecological protection and restoration of the Yangtze River Economic Zone, and further promote the pilot projects of ecological protection and restoration of landscapes, forests, fields, lakes and grasses. Actively promote the establishment of a national green development fund.
In terms of supply-side structural reforms, the National Emerging Industry Venture Capital Guidance Fund has been used to support more than 5,100 entrepreneurial companies. Support the construction of public service systems and financing service systems for small and medium-sized enterprises. Support 59 cities (prefectures and districts) to carry out pilot projects to deepen the comprehensive reform of financial services for private and small and micro enterprises.
In terms of expanding investment and consumption, new local government special bonds were 2.150 billion yuan, an increase of 800 billion yuan over 2018. Increase tax and fee concessions for community and family services such as elderly care, childcare, and housekeeping, and promote the quality and upgrade of cultural, tourism and leisure consumption. Carry out a comprehensive demonstration of e-commerce in rural areas, and achieve full coverage of national poverty-stricken counties.
In terms of the coordinated development of urban and rural areas, support the creation of modern agricultural industrial parks and strong agricultural industrial towns, and promote the deep integration of rural primary, secondary and tertiary industries. Significantly increase the scale of transfer payments from the central government to local governments, and focus on the central and western regions and difficult areas. Support the accelerated development of old revolutionary base areas, ethnic areas, border areas, and poverty-stricken areas.
In terms of people’s livelihood security, a national scholarship for secondary vocational education was established to support the successful completion of the goal of enrolling one million people in higher vocational colleges. Promote the development of culture and sports. The central government subsidized local public cultural service system construction special funds of 14.7 billion yuan. Support the inheritance and development of Chinese excellent traditional culture and strengthen the protection of cultural heritage.
Regarding the reform of the fiscal and taxation system, we have actively promoted the reform of the division of fiscal powers and expenditure responsibilities between the central and local governments in different areas, and introduced reform plans in the fields of education, technology, and transportation. Promote the reform of the income division between the central and local governments and maintain a stable value-added tax “five-five-year share” ratio.
The draft pointed out that the implementation of the 2019 budget was relatively good, and the fiscal reform and development work has made positive progress. However, there are still some problems and challenges in budget implementation and financial work. The main reason is that the contradiction between revenue and expenditure at the grassroots level in some localities has intensified, and the pressure on the “three guarantees” has increased. The phenomenon of fixed and rigid expenditures in some areas still exists, and some funds are not used efficiently. Budget performance target setting is not scientific enough, performance self-evaluation is not accurate enough, and the application of performance results needs to be strengthened. Some local governments have heavy debt burdens, and hidden debt risks cannot be ignored.
Forecast of fiscal revenue and expenditure in 2020
The draft pointed out that since the beginning of this year, the sudden new crown pneumonia epidemic has brought an unprecedented impact on my country’s economic and social development. The Party Central Committee regards epidemic prevention and control as a top priority. General Secretary Xi Jinping personally directs and deploys, insisting on putting people’s life safety and physical health first. As of the end of April, all levels of finance have allocated 149.9 billion yuan for epidemic prevention and control to ensure that the people do not dare to seek medical care due to cost issues and ensure that medical treatment and epidemic prevention and control are not affected by funding problems.
While doing a good job in the prevention and control of the epidemic, the central government has implemented a batch of fiscal and tax policies such as phased assistance for enterprises to stabilize jobs, support the relief and development of enterprises, promote the orderly resumption of work and production, and accelerate the restoration of normal production and living order.
The new debt limit for 2020 will be issued in three batches in advance of 2.848 billion yuan, including a general debt limit of 558 billion yuan and a special debt limit of 2.290 billion yuan. Areas with many key projects, low risk levels, and effective investment stimulus will be given priority and accelerated The construction of major projects and major livelihood projects will promote the early formation of physical workloads and stimulate economic growth. From March 1 to the end of June, the proportion of local fiscal funds retained was increased by 5 percentage points, and approximately 110 billion yuan was newly retained, all of which was reserved for county-level use, effectively ensuring the stable operation of grassroots finances.
At present, affected by the global epidemic, the world economy is in severe recession, the circulation of the industrial chain and supply chain is blocked, international trade and investment are shrinking, and the bulk commodity market is turbulent. Domestic consumption, investment, and exports have declined, and employment pressure has increased significantly. Enterprises, especially private enterprises and small, medium and micro enterprises, have become more difficult, financial revenue and expenditure conflicts have intensified, and financial operation pressure has increased.
In terms of fiscal revenue, due to the impact of the epidemic, tax cuts and fee reductions, fiscal revenue fell by 14.5% from January to April this year, of which January fell by 3.9%, in February by 21.4%, in March by 26.1%, and in April. 15%, the rate of decline in the first quarter expanded month by month and then narrowed.
It is expected that in the next few months of this year, with the restoration of production and living order, fiscal revenue will begin to stabilize and rise, but there is still greater uncertainty. The general public budget revenue may maintain negative growth in the second quarter, and may resume growth in the second half of the year and make up for part of the revenue reduction in the first half of the year.
From the perspective of fiscal expenditures, we will coordinate the promotion of epidemic prevention and control and economic and social development, and make every effort to ensure the completion of the decisive and decisive goal of poverty alleviation, and the completion of a well-off society in an all-round way. Fiscal expenditures must be maintained at a certain level, especially for all levels of finance to invest in epidemic prevention and control Funds, the implementation of the “six guarantees” task, and the implementation of tax and fee reductions also require financial support. Some regions need to provide necessary financial subsidies to the fund due to the phased reduction or exemption of social insurance premiums.
Key financial work in the next stage
The proactive fiscal policy in 2020 must be more proactive, centered on doing a good job in the “six stability” and implementing the “six guarantees” task, with greater policy efforts to hedge the impact of the epidemic, and truly play a key role in stabilizing the economy.
2020 fiscal policy priorities
One is to increase tax and fee reduction efforts. Strengthen phased policies, combine with institutional arrangements, and focus on reducing the tax burden of small, medium and micro enterprises, individual industrial and commercial households, and enterprises in difficult industries. The main tax and fee reduction policies that were introduced before June, and the implementation period was extended to the end of this year, to support the development of market players in relief, and strive to stabilize enterprises and ensure employment. It is expected that the new burden of market players will be more than 2.5 trillion yuan throughout the year.
The second is to raise funds through multiple channels. Special measures were taken during special periods to increase the deficit rate from 2.8% to 3.6% or more. The fiscal deficit increased by 1 trillion yuan over last year. It actively hedged against the impact of reduced revenue and increased expenditure caused by the epidemic, stabilized and boosted market confidence. At the same time, 1 trillion yuan of anti-epidemic special treasury bonds were issued. Intensify the utilization of various types of carryover and deposit funds, strive to increase available financial resources, and make up for the gap in fiscal revenue reduction and increase in expenditure.
The third is to adjust and optimize the expenditure structure. Expenditures for basic people’s livelihood should only increase without reduction, expenditures in key areas should be effectively guaranteed, general expenditures should be resolutely reduced, new government buildings, and extravagance and waste should be strictly prohibited. Central government departments took the lead in tightening their lives, and central government expenditures fell by 0.2%, of which non-urgent and non-rigid expenditures were reduced by more than 50%. Local finance should also vigorously reduce general expenditures, continue to reduce the “three public” expenditures, and strictly control conference travel, consulting and training, forums and exhibitions. All types of balances and deposits must be collected and re-arranged. Fiscal funds must be vigorously improved in quality and efficiency, and must be carefully calculated and spent on the cutting edge.
The fourth is to ease local financial difficulties. The newly increased fiscal deficit and special national debt for the fight against the epidemic are all allocated to local governments, or they can be used to implement the “six guarantees” task and reduce taxes and fees. Establish a special transfer payment mechanism. Funds go directly to the basic level of cities and counties to directly benefit enterprises and people. They are mainly used to ensure employment, basic people’s livelihood, and market players, including supporting tax and fee reduction, rent and interest reduction, and expansion of consumption and investment. The nature of public finances must never be intercepted and embezzled.
The fifth is to expand the scale of government investment. The anti-epidemic special national debt is mainly used for local public health and other infrastructure construction and anti-epidemic related expenditures, and some funds are reserved for local governments to solve special difficulties at the grassroots level. Arrange for local governments to add 3.75 trillion yuan in special bonds, an increase of 1.6 trillion yuan over last year, effectively supporting shortcomings, benefiting people’s livelihood, promoting consumption, and expanding domestic demand.
The draft clearly states that the main revenue and expenditure policies for 2020 and the key fiscal tasks in the next phase include:
1. Support the three major battles.
Resolutely win the battle against poverty. Continue to increase financial investment in poverty alleviation. The central government has allocated 146.1 billion yuan for local special poverty alleviation funds, an annual increase of 20 billion yuan for five consecutive years, and another one-off increase of 30 billion yuan through carry-over funds, further contributing to the “three districts and three states” Including deep-poor areas, war-listed areas and areas heavily affected by the epidemic. Increase the integration of agriculture-related funds in poverty-stricken counties, implement policies such as industrial poverty alleviation, employment poverty alleviation, consumption poverty alleviation, education poverty alleviation, and strengthen follow-up support for relocation and relocation. Continue to optimize and improve the dynamic monitoring platform, strengthen the supervision of financial poverty alleviation funds, and strengthen the performance management of the entire process of poverty alleviation project funds. Continue to implement the main support policies for the county. Support the monitoring and assistance work to prevent the return of poverty, step up research and consolidate the achievements of poverty alleviation, continue to promote the support policies for solving relative poverty, and promote the organic connection of poverty alleviation and rural revitalization.
Promote the realization of the interim goals of the fight against pollution. Adhere to the same direction and undiminished efforts, highlight the lawful, scientific and precise pollution control, and promote the continuous improvement of the quality of the ecological environment. We will focus on supporting the defense of blue sky, clear water, and pure land. Funds for pollution prevention in air, water, and soil are allocated 25 billion yuan, 31.7 billion yuan, and 4 billion yuan respectively. Accelerate key tasks such as the treatment of urban black and smelly water bodies, the improvement of quality and efficiency of urban sewage treatment in the central and western regions, the protection and restoration of the Yangtze and Yellow River basins, the treatment of agricultural and rural pollution, and the elimination of old diesel trucks. Deepen the pilot projects of ecological protection and restoration of landscapes, forests, fields, lakes and grasses, and continue to implement the “Blue Bay” remediation action and comprehensive management of the Bohai Sea. Support the establishment of a natural protected area system with national parks as the main body, implement sand prevention and control and land greening actions, and increase forestry grassland ecological protection and restoration. Promote the listing and operation of the National Green Development Fund. Increase ecological compensation for key ecological function areas. Accelerate the construction of horizontal ecological compensation mechanisms in the Yangtze and Yellow River basins.
Effectively prevent and resolve risks. Improve the normalization of local government debt monitoring mechanism, unified calibre, unified supervision, and timely detection and disposal of potential risks. Comprehensively adopt various measures to steadily resolve existing hidden debts, strictly prohibit false debts, and never leave a sequelae to solve short-term problems. Strengthen supervision and accountability, and achieve lifetime accountability and reverse inspection responsibility. Properly handle the risks of local high-risk financial institutions, clarify the responsibilities of all parties, and bear risk losses in accordance with the law. Efforts will be made to prevent the superimposed resonance of domestic risks and external imported risks. Resolutely hold the bottom line of no systemic risks.
2. Support the implementation of strategies to expand domestic demand.
Promote consumption recovery. Under the premise of scientifically preventing and controlling the epidemic, we will support the full business and market resumption of various shopping malls and markets, and the normal operation of the life service industry. Encourage the development of new business formats such as online consumption, and expand green and healthy consumption. Extend the implementation period of the fiscal subsidy policy for the promotion and application of new energy vehicles to the end of 2022, smooth the intensity and pace of subsidy decline, accelerate the electrification of vehicles in urban public transportation and other fields, and continue to support the construction of charging piles and power replacement stations. Support e-commerce and express delivery into rural areas, and make up for the shortcomings of agricultural cold chain logistics facilities. Accelerate the construction of an old-age service system, deepen the integration of medical care, health care, and steadily advance the pilot long-term care insurance system.
Actively expand effective investment. The central government issued 1,000 billion yuan of special treasury bonds for anti-epidemic, all of which were transferred to local governments mainly for public health and other infrastructure construction and anti-epidemic related expenditures. Strengthen the coordination of special national debts for the fight against the epidemic with other fiscal funds, and enhance the autonomy of local funds in the use of funds. Significantly increase local government special bonds, adhere to the principle of “funds follow the project”, and make reasonable allocations taking into account the risk level of local government debt and project preparation. They are mainly used in key areas and major strategic projects determined by the Party Central Committee and the State Council to stimulate the private sector. Investment, effectively supporting shortcomings, benefiting people’s livelihood, promoting consumption, and expanding domestic demand. The central budget allocated 600 billion yuan for investment, an increase of 22.4 billion yuan over the previous year. The central government will inject 50 billion yuan into the China National Railway Group, support the issuance of 50 billion yuan of railway construction bonds as capital, and increase the construction of coastal arterial high-speed railways, intercity railways and high-speed railway projects along the river.
3. Support the employment of residents.
Do everything possible to stabilize and expand employment. Make employment protection the top priority, stabilize the total employment volume, improve the employment structure, and enhance the quality of employment. The central government allocated 53.9 billion yuan in employment subsidy funds, and made good use of the more than 100 billion yuan of special account funds for vocational skills improvement actions drawn from the unemployment insurance fund balance, as well as special awards and subsidies for the structural adjustment of industrial enterprises, to promote local implementation of various employment and entrepreneurship policies . Emphasize support for the employment of key groups such as college graduates, veterans, and migrant workers, and promote employment and entrepreneurship through multiple channels. Continue to support the upgrading of vocational skills and the expansion of higher vocational enrollment. This year and next, more than 35 million vocational skills will be trained, and higher vocational colleges will expand by 2 million. Include migrant workers who return to their hometowns to start a business in the scope of a one-time start-up subsidy as required.
Guarantee the basic livelihood of the unemployed. Continue to make good use of the unemployment insurance fund, strengthen the basic living security and reemployment services for the unemployed, and implement the extension of the unemployed elderly who have been issued this year
Support measures for the unemployed, such as the period of time for employees to receive unemployment insurance benefits, staged implementation of unemployment subsidies, and raising of temporary price subsidies, to expand the coverage of unemployment insurance.
4. Support basic people’s livelihood.
Support the development of fair and quality education. Optimize the use structure of education funds, strengthen the performance management of education funds, focus on ensuring the implementation of compulsory education teachers’ salaries, continue to support poor areas in the central and western regions to improve school conditions, and continuously narrow the gap between urban and rural areas, regions, and schools. Increased transfer payments to the local education sector, urban and rural compulsory education subsidies increased by 8.3%, pre-school education development funds increased by 11.8%, student subsidies increased by 9.6%, and subsidies for improving general high school conditions increased by 9.2%. Accelerate the integration of urban and rural compulsory education. Starting from the spring semester of 2020, the national benchmark quota for public expenditures for compulsory education students will be unified. Strengthen the construction of township boarding schools, small rural schools and county schools. Effectively solve the problem of difficulty in going to school for the children of migrant workers. Further increase the supply of inclusive pre-school education resources, and continue to favor the deeply impoverished areas. Accelerate the promotion of the popularization of high school education, promote the quality and quality of vocational education, support the acceleration of the construction of first-class universities and first-class disciplines, support the development of universities in the central and western regions, and enhance the level of connotative development of higher education.
Promote a healthy China strategy. Persist in putting people’s life safety and physical health first, resolutely implement normalized epidemic prevention and control requirements, increase financial investment, highlight sustainability and bottom line, and promote people’s health and medical and health standards. The per capita financial subsidy standard for resident medical insurance was raised by 30 yuan to reach 550 yuan per person per year, and the personal payment standard was raised simultaneously. The per capita financial subsidy standard for basic public health service funds has been increased by 5 yuan to 74 yuan per person per year. The newly-added basic public health service financial subsidy funds are all used in urban and rural communities to strengthen primary health and epidemic prevention. Consolidate and improve the direct settlement mechanism of basic medical insurance hospitalization expenses for medical treatment in different places. Steadily improve the level of medical insurance fund coordination, and steadily promote city-level coordination. Support the deepening of medical, medical insurance, and pharmaceutical linkage reforms. Orderly expand the scope of centralized procurement and use of drugs organized by the state, and carry out pilot projects for centralized procurement of high-value medical consumables organized by the state. Optimize the investment structure of medical and health resources, and continue to support the deepening of the comprehensive reform of public hospitals. Promote the revitalization and development of Chinese medicine. Strengthen the construction of the public health system, promote the construction of a major epidemic prevention and treatment system and an emergency material guarantee system, and steadily promote the construction of regional medical centers. Support the cultivation and training of health professionals.
Steadily improve the level of old-age security. The basic pension for retirees will be increased by 5%, while the minimum standard for basic pensions for urban and rural residents will be appropriately raised. Comprehensively promote the provincial-level overall planning of basic pension insurance to ensure that the provincial-level unified income and expenditure of the fund will be realized by the end of 2020. Accelerate the national overall planning of endowment insurance. Increase the central adjustment ratio of the basic pension insurance fund for enterprise employees to 4%, increase support for difficult areas, and ensure that the basic pension for retirees is paid on time and in full. Strengthen the provision of community-oriented elderly care services and facility construction, continue to promote the integration of medical care and elderly care, and support the development of elderly care services.
Do a good job in people’s livelihood. Prioritize basic livelihood expenditures for the basic living of the needy people. The central government has allocated 148.4 billion yuan in subsidies for the people in need to support local governments in providing subsistence allowances, aid and support for the extremely poor, temporary assistance, and assistance for vagrant and beggars. Basic living security for orphans and other work. Support the development of the cause of the disabled. We will expand the scope of subsistence allowances, cover all families in difficulties in urban and rural areas, and timely include eligible urban unemployed and returnees into the scope of assistance such as subsistence allowances. We will promptly activate the linkage mechanism between social assistance and security standards and price increases, increase temporary price subsidies in stages, and strive to reduce the impact of price increases on the basic lives of people in need. The central government has allocated 28.6 billion yuan in medical assistance subsidies to alleviate the medical burden of the people in need and provide a foundation for medical security.
Improve the basic housing security system. The central government has allocated 70.7 billion yuan in subsidies for the urban affordable housing project, focusing on supporting the transformation of old urban communities and the development of rental housing, strengthening housing security for the urban poor, and continuing to support the transformation of shanty towns. The central government allocated 18.5 billion yuan in subsidies for the renovation of dilapidated houses in rural areas, and continued to promote the renovation of dilapidated houses in rural areas and the earthquake-resistant renovation of rural houses.
Strengthen the construction of the public cultural service system. The central government supports the arrangement of 15.2 billion yuan in subsidies for the construction of local public cultural service systems, supports improving the coverage and applicability of basic public cultural services, and promotes the equalization of basic public cultural services. Actively assist the recovery and development of some cultural industries affected by the epidemic. Support the promotion of the inheritance and development project of Chinese excellent traditional culture. Do a good job in the preparations for the Beijing Winter Olympics and the Paralympic Winter Games and the financial guarantee for the national team to prepare for the Olympics.
5. Support to protect market entities.
Increase tax and fee reduction efforts. This year, we will continue to implement the policy of reducing the value-added tax rate and corporate pension insurance rate in 2019, and cut taxes and fees by about 500 billion yuan. Some of the phased tax and fee reduction policies that have been promulgated in the previous period include exemption from the payment of pension, unemployment and work-related injury insurance units for small and medium-sized enterprises, reduction and exemption of value-added tax for small-scale taxpayers, and exemption from public transportation, catering and accommodation, tourism and entertainment, culture and sports Such as service value-added tax, reduction and exemption of airline civil aviation development funds, port construction fees, and the implementation period are all extended to the end of this year. The income tax of small and micro enterprises and individual industrial and commercial households will be postponed until next year. We must resolutely implement the tax and fee reduction policies, and try our best to help enterprises, especially small, medium and micro enterprises and individual industrial and commercial households, tide over the difficulties.
Promote the reduction of production and operation costs of enterprises. Work in concert with monetary and industrial policies to strengthen support for enterprises in industries that are more affected by the epidemic, and support the solution of corporate financing difficulties and high financing issues. Reduce or exempt the rent of state-owned real estate, encourage all types of owners to reduce or exempt or delay the collection of rents. The government financing guarantee industry halved fees and reduced the comprehensive financing guarantee rate to less than 1%. The national financing guarantee fund’s new re-guarantee business scale in 2020 will not be less than 400 billion yuan. Allow the extension of eligible business secured loans, further increase support groups, lower entry barriers, and include individual industrial and commercial households and taxi drivers affected by the epidemic into the scope of support.
Continue to stimulate the vitality of market players. We will deepen the reform of “decentralization, management and service”, in-depth promotion of mass entrepreneurship innovation, support the creation of a full-chain and professional public service platform, and give full play to the leading role of national new districts, high-tech zones, and dual innovation demonstration bases. Implement preferential tax policies that encourage the development of venture capital. Continue to implement the small and micro enterprise financing guarantee fee reduction and reward policy, encourage the expansion of the financing guarantee business scale of small and micro enterprises in the real economy, and reduce the financing guarantee rate for small and micro enterprises. Continue to do a good job in cleaning up the outstanding accounts of private enterprises and small and medium-sized enterprises.
6. Support to ensure food and energy security.
Make every effort to ensure the supply of important agricultural products such as grain. Stabilize the sown area and output of grain, improve the country’s ability to guarantee food security, and firmly hold the rice bowl in its own hands. Strengthen the protection of arable land and the construction of farmland water conservancy, support the construction of 80 million mu of high-standard farmland, and implement 40 million mu of conservation farming on black soil in Northeast China. Deepen the soybean revitalization plan, deepen the reform of the grain purchasing and storage system, improve the minimum purchase price policy for rice and wheat, and the market-oriented purchase of corn and soybeans plus producer subsidies. Support the guarantee of domestic food supply and market stability. Implement policies to support the recovery of live pig production to stabilize and guarantee the supply of domestic pork market. Continue to strengthen the prevention and control of major animal diseases such as African swine fever and highly pathogenic avian influenza, and promote the overall development of the livestock and aquaculture industry.
Anhydrous cultivation paddy field
Strive to ensure energy security. Continue to support the exploitation and utilization of unconventional natural gas such as shale gas and coalbed methane, support the healthy development of renewable energy, and promote the adjustment of energy structure. Establish and improve the energy security reserve system. Reduce the cost of electricity and gas for enterprises, and continue to reduce the electricity prices of large industries and general industrial and commercial industries except for high energy consumption by 5%; implement a supporting two-part electricity price policy, focusing on reducing and exempting two-part electricity users’ capacity (required) electricity costs, Exemption of high-reliability power supply fees for newly built and expanded medical facilities; phased reduction of non-residential gas prices, early implementation of the off-season natural gas price policy, and more preferential gas prices for industries that involve agricultural production and are heavily affected by the epidemic, such as fertilizers.
7. Support the stability of the supply chain of the industrial chain.
Support the high-quality development of manufacturing. Promote the acceleration of the restoration and stabilization of the industrial chain supply chain. Encourage increased investment in equipment renewal and technological transformation, promote the optimization and upgrading of traditional manufacturing, and support the construction of key strategic areas in engineering and the construction of service platforms for upgrading key industries. Support the development of the industrial Internet and promote smart manufacturing. Implement the first (set) pilot insurance compensation policy for major technical equipment, and vigorously promote the promotion and application of innovative products. Implement the cultivation of new business formats for the digital economy and support the construction of digital supply chains. Support the high-quality development of the integrated circuit and software industries. Study the establishment of government procurement transaction systems, cost management and risk sharing mechanisms that are compatible with supporting innovation. Promote the in-depth integration and development of advanced manufacturing and modern service industries, and build high-end service brands in China.
Improve the ability to support scientific and technological innovation. Increase support for scientific research on new coronary pneumonia vaccines, drugs, and rapid detection technologies to effectively ensure funding needs. Improve systems and mechanisms that encourage and support basic research and original innovation, and increase efforts to tackle key core technologies. Support the construction of national laboratories and the reorganization of the national key laboratory system, and strengthen national strategic scientific and technological capabilities. Carry out relevant work for the continuation of major scientific and technological projects, and promote scientific and technological innovation 2030-the accelerated implementation of major projects. Deepen international scientific and technological cooperation. Strengthen the protection of intellectual property rights. Support the implementation of key projects to “reveal the rankings”. Promote pilot projects that grant scientific research personnel the right to own or use long-term scientific and technological achievements to release the innovative vitality of scientific research institutions and personnel.
Stabilize the basic market of foreign trade and foreign investment. Continue to support and guide the construction of comprehensive pilot zones for cross-border e-commerce and accelerate the cultivation of new growth points for foreign trade. Speed up the construction of Hainan Free Trade Port. Support the border economic cooperation zone and other key areas to improve the level of public services, and encourage the expansion of imports of advanced equipment and technology, key parts and components. Deepen the pilot projects for the innovative development of service trade, and encourage the undertaking of international service outsourcing, technology and technical service exports. Establish and improve the public service system for foreign investment promotion, guide the orderly development of foreign investment cooperation, and promote the joint construction of the “Belt and Road”.
8. Support to ensure basic operations.
The central government will coordinate the new deficits, carry-over funds from previous years, and reduce the financial resources vacated by expenditures at the same level, to effectively increase support for local financial resources, and ease the pressure on fiscal expenditures caused by the slowdown in local income growth. Transfer payments from the central government to local governments increased by 12.8%, of which general transfer payments (excluding transfer payments for common fiscal powers) increased by 7.5%, which was 7.7 percentage points higher than the central government’s expenditures, focusing on old revolutionary areas, ethnic minority areas, border areas, and poor areas In addition, the areas affected by the epidemic are inclined to support the normal operation of localities, especially difficult areas. Among the general transfer payments, the balance transfer payment arrangement was 1,7199.2 billion yuan, an increase of 10%; the county-level basic financial guarantee mechanism awards and subsidies were arranged to 297.9 billion yuan, an increase of 10%; the old, young, borderline and poor areas were allocated 279.61 billion yuan, an increase of 10%. 12.4%. Arrange special transfer payments of 605 billion yuan to support the local implementation of the “six guarantees” task and deal with uncertainties in implementation. At the same time, actively innovate the distribution method of fiscal funds, maximize financial resources, and ensure that funds go directly to the grassroots of cities and counties to directly benefit enterprises and people.
9. Support the coordinated development of urban and rural areas.
Strengthen rural public services. Taking epidemic prevention and control as the starting point, we will strengthen the improvement of rural human settlements and the construction of public health systems, promote the revolution of rural toilets in accordance with local conditions, strengthen the treatment of rural domestic garbage and sewage, and promote the upgrading of the construction of beautiful villages. Actively support the maintenance and maintenance of rural drinking water projects and focus on poverty-stricken areas, and launch pilot projects for water system connectivity and comprehensive improvement of rural water systems. Promote and accelerate the construction of rural infrastructure such as the “Four Good Rural Roads”. Deepen the comprehensive rural reform pilot test, strengthen the funding guarantee for the operation of rural grassroots organizations, and explore effective new models of rural governance.
Promote the continuous increase of farmers’ income. Increase support for various forms of moderate-scale business entities, and strengthen services for small-scale farmers. Promote the in-depth integration of the primary, secondary and tertiary industries in rural areas, continue to support the creation of modern agricultural industrial parks and the construction of strong agricultural industrial towns, start the construction of advantageous and characteristic industrial clusters, and improve the efficiency of agricultural operations. Support farmers to start their own businesses nearby, expand the scale of farmers’ vocational skills training, and strengthen guaranteed loans and subsidies for returning migrant workers to start their own businesses.
Deeply promote new urbanization. Vigorously improve the level of urban infrastructure and public services, increase government investment, and actively attract social capital investment. Improve the fiscal policy to support the urbanization of agricultural migrants. The central government will allocate 35 billion yuan for the urbanization of agricultural migrants to encourage local governments, especially urban governments, to actively absorb agricultural migrants to settle down, and effectively improve the quality of agricultural migrants’ urbanization. Strengthen financial security and support local governments to improve the quality of basic public services for employment services, social insurance, affordable housing, and education for migrant children.
Promote the implementation of major national regional strategies. Continue to promote the development of the western region to form a new pattern, comprehensive revitalization of the Northeast, the rise of the central region, and the development of the eastern region first. Increase fiscal and taxation policy support, continue to support the advancement of the coordinated development of the Beijing-Tianjin-Hebei region, the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, the integrated development of the Yangtze River Delta and other major national regional development strategies, solidly promote the construction of the Xiongan New Area, and implement the Yangtze River Economic Belt to protect the Yangtze River Economic Belt. Measures to promote the ecological protection and high-quality development of the Yellow River Basin, and promote the construction of a two-city economic circle in the Chengdu-Chongqing region. Support the transformation and development of resource-exhausted cities. Promote the accelerated development of old revolutionary areas, ethnic minority areas, border areas, and poverty-stricken areas. Research and formulate fiscal and taxation policies to support the social and economic development of Tibet and Xinjiang during the “14th Five-Year Plan” period.
Gesang flowers bloom in a scenic spot
At the same time, implement various fiscal and taxation policies to support the economic and social development of Hubei Province, focus on supporting the job protection, people’s livelihood, and operation work, and promote the acceleration of the resumption of work and production, the resumption of business and the stable operation of the industrial chain supply chain, and promote The economy and society of Hubei Province have been fully restored and the finances have been operating steadily.
10. Support national defense and diplomatic work.
Focus on better serving the party and the country’s overall situation, focusing on safeguarding national defense expenditures, and supporting national defense and military modernization. Accelerate the in-depth development of military-civilian integration, ensure funding, and improve supporting policies. Improve the preferential care and placement policies, support the construction of a service guarantee system for veterans, and effectively guarantee the treatment of veterans. Support major-country diplomacy with Chinese characteristics and actively participate in the reform of global economic governance.
The draft pointed out that it is necessary to strengthen the dynamic monitoring of budget implementation, improve financial monitoring mechanisms such as financial poverty alleviation funds, centralized payment funds from the treasury, and actual funds of pilot units. Vigorously revitalize the fiscal stock funds, and timely recover long-term precipitation funds in accordance with regulations, and use them in other areas that urgently need financial support. Appropriately increase the proportion of special bonds as the capital of eligible major projects.
Strict compliance review and risk control of special bond projects. Special bonds must be used for major projects with a certain income, and the scale of financing must be balanced with the project income. Insist that local government bonds can only be used for public welfare capital expenditures in accordance with the law, and cannot be used for recurrent expenditures, and it is strictly prohibited to use bond funds for wages, unit operating expenses, and pensions.