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On the eve of the two sessions, the Minister of Finance issued a document to release the latest information on fiscal policy

TIME:2020-09-30 SOURCE:admin VIEWS:280 times

Beijing News (Reporter Jiang Huizi) The National Two Sessions will be held next week, and how fiscal policies can hedge the impact of the epidemic has become the focus of attention. Today (May 14), Minister of Finance Liu Kun published an article “A proactive fiscal policy should be more proactive”, revealing the latest trends in fiscal policy this year.

The full text gives a detailed explanation around “proactive fiscal policy needs to be more proactive”. Liu Kun pointed out that a more proactive fiscal policy is an inevitable requirement for building a moderately prosperous society in an all-round way, a realistic need to hedge against downward pressure on the economy, and a due meaning for finances to better play the role of the foundation and important pillar of national governance.

The outbreak of the new crown pneumonia at the beginning of this year had a huge impact on my country’s fiscal revenue growth. In the first quarter, fiscal revenue experienced a negative growth, down 14.3% year-on-year. Regarding the annual fiscal revenue, Liu Kun gave his judgment-“It is expected that the general public budget revenue in 2020 will be lower than the previous year.”

At the same time, fiscal expenditures must still be maintained to a certain degree, and financial support is needed to coordinate the promotion of epidemic prevention and control and economic and social development, alleviate poverty and build a well-off society in an all-round way.

In this regard, the proactive fiscal policy has taken five “additional” measures.

The first is to increase the size of the deficit, clearly release positive signals, ease the contradiction between fiscal revenue and expenditure, stabilize and boost market confidence.

The second is to implement tax and fee reductions to hedge against business difficulties. Liu Kun pointed out that safeguarding the main body of the market means safeguarding the fundamentals of the economy. Through institutional arrangements and phased policies, the focus is on reducing the tax burden of small, medium and micro enterprises, individual industrial and commercial households, and enterprises in difficult industries. Continue to implement systems such as lowering the value-added tax rate and corporate pension insurance premium rates, and appropriately extend the implementation period of some phased tax and fee reduction policies issued in the previous period.

At present, the value-added tax rate for small-scale taxpayers and individual industrial and commercial households has been lowered from 3% to 1%, and the Hubei region is exempted; lowering the corporate pension insurance rate, these measures will continue to be implemented until the end of the year. At the same time, measures such as reducing or exempting state-owned property rents, halving fees for the government financing guarantee industry, and reducing the comprehensive financing guarantee rate to below 1% have also been implemented.

The Ministry of Finance issued another notice today that from January 1, 2020 to December 31, 2020, taxpayers’ income from film screening services will be exempted from VAT.

The third point is to expand government investment to hedge the downward pressure on the economy. Through various channels such as anti-epidemic special treasury bonds and local government special bonds, increase government investment, give full play to the leveraging effect of government investment, and effectively support shortcomings, benefit people’s livelihood, promote consumption, and expand domestic demand.

Anti-epidemic special treasury bonds, special bonds, and increasing the deficit rate are considered to be the “three-strikes” of fiscal force to hedge the impact of the epidemic. Among them, there are still many discussions on the scale and direction of use of the anti-epidemic special national debt. Liu Kun made it clear in the article this time that it will be used to “increase government investment.” The industry generally predicts that the anti-epidemic special national debt will be around one trillion yuan in scale.

The special bond information is relatively clear. Currently, 2.29 trillion yuan has been issued ahead of schedule, and more than half of the issuance in various regions has been completed. In accordance with the requirements of the executive meeting of the State Council, we strive to complete the issuance by the end of May. Investments include 7 traditional infrastructure areas such as agriculture, forestry, water conservancy, and municipal administration, as well as new infrastructure such as 5G and big data, and new areas such as the transformation of old urban communities.

Liu Kun also stated in the article that the structure and method of the use of fiscal funds will be further optimized, focusing on areas such as people’s livelihood and the common benefit of supply and demand, advanced manufacturing with multiplier effects, people’s livelihood construction, and infrastructure shortcomings, and concentrated funds for precise protection.

The “additional” measures also include increasing transfer payments to ensure the bottom line of the “three guarantees” of wages, operations, and basic people’s livelihood to ensure the normal operation of the grassroots. In terms of funding sources, the central government will effectively ensure the operation of the grassroots level through channels such as new deficits, carry-over funds from previous years, and financial resources vacated by reducing expenditures at the level.

At the same time, innovate distribution methods to ensure that funds go directly to the grassroots of cities and counties and directly to the people’s livelihood, implement policies such as the advance scheduling system of treasury funds and the phased increase in the proportion of fiscal funds retained to increase local cash flow. Preferring to regions that are more affected by the epidemic, especially Hubei, implement various fiscal and taxation support policies, promote accelerated resumption of work and production, resumption of business, and stable operation of the industrial chain supply chain, and promote the comprehensive economic and social recovery of Hubei Province.

In addition, the budget balance should be strengthened to hedge against the impact of the epidemic. Fully revitalize the fiscal stock funds and assets, and increase the transfer to the central budget stabilization fund. At the same time, the “subtraction” keeps up, and the people are economized. The central government department takes the lead to live a tight life and strictly control various general expenditures; local finances continue to reduce the “three public” funds, strictly control conference travel and other expenses, and prohibit new construction, Expansion of government buildings.

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