“Protect the people’s livelihood”, “tax and fee reduction” and other hot words in the two sessions of the local people’s Congress to force the proactive fiscal policy

2022-05-05 0 By

The Central Economic Work Conference stressed that proactive fiscal policy should be more efficient, precise and sustainable.There is widespread concern in the society. How do local governments implement this policy?How to reduce the pressure of tight budgetary balance?How will we ensure spending in key areas?Recently, the local NPC and CPPCC have ended, “protect people’s livelihood”, “tax and fee reduction”, “forward force” and other popular words around the NPC and CPPCC.With a focus on proactive fiscal policy, many have suggested that we will work to tap the potential for increasing revenue, address pressure for reducing revenue, and make policy more effective, so as to contribute to stabilizing the broader economy and keeping society stable.How will local governments collect and spend money this year?Local governments have made a scientific assessment of the economic development situation, made reasonable arrangements for expected revenue, expenditure and debt, and made greater efforts to adjust and optimize the expenditure structure, focusing on ensuring people’s wellbeing and other key expenditures.In their draft budgets, many localities have raised their fiscal revenue and expenditure forecasts, taking into account macroeconomic operations, regular and targeted epidemic prevention and control, and policies to cut taxes and fees.For example, revenue in Beijing’s general public budget is projected to reach 616.96 billion yuan in 2022, an increase of 4%.Inner Mongolia’s general public budget revenue is estimated to be about 240 billion yuan, an increase of more than 2% over last year.Revenue in shandong’s general public budget will reach 765 billion yuan, an increase of 5% over last year.Hunan’s general public budget revenue was 344.6 billion yuan, an increase of 6 percent over the previous year.In response, spending has risen in tandem.For example, in 2022, guangxi will allocate 613.479 billion yuan in general public budget expenditure, an increase of 5%.Inner Mongolia’s general public budget expenditure is expected to reach 550 billion yuan, up 5%.Expenditure in Beijing’s general public budget is projected to reach 715.6 billion yuan, up 4.3%.Expenditure in Guangdong’s general public budget was 1.866941 trillion yuan, up 3%.”Since the beginning of the year, a series of policies have been introduced to stabilize the macro economy. The fundamentals of China’s long-term sound economy have not changed. There is still a certain economic foundation for the steady growth of fiscal revenue.Li Xuhong, director of the Institute of Fiscal and Tax Policy and Application at the National Accounting Institute in Beijing, said.It is a prominent feature of this year’s budget arrangements for local governments to use “real money and silver” to properly handle matters of greatest concern to the people.He Li director of financial department of sichuan province, said the 2022 sichuan fiscal spending of the people’s livelihood in the general public budget expenditure proportion of stable at more than 65% on the basis of gradually increase, the new budget capital 3.5 billion yuan, the key matter of concern, support people to solve place engineering including compulsory education teacher, retired worker and pension standard to improve urban and rural residents, etc.In 2022, Jiangxi province will allocate 16.05 billion yuan for new projects at the provincial level, which will be mainly used to guarantee the key tasks of major strategic and important planning, continuously increase investment in basic livelihood, increase transfer payments to cities and counties in difficulty, and guarantee the basic needs of major activities and key projects.Local governments have also resolutely complied with the requirement to tighten their belts, freeing up more financial resources and using their precious financial funds to the most important areas.In 2022, the municipal government allocated 709 million yuan to party and government organs and public institutions for official overseas visits, official vehicles, and official hospitality, down 1.1%.This year, Provincial-level spending on official overseas visits, official vehicles, and official hospitality in Sichuan has been cut by about 5% on top of the previous reduction, to ensure that more funds are used to improve people’s wellbeing and put government funds to better use.Ensuring market players is the key to the resilience and potential of China’s economy. Helping enterprises and ensuring market players is the focus of this year’s local NPC and CPPCC sessions. Many localities said they would strengthen support for market players and intensify policy implementation.Dai Yunlong, head of the guangdong Provincial Department of Finance, said that Guangdong will study and formulate a package of financial support policies to help enterprises and make a “combination of blows” to tide over difficulties together with enterprises.For example, we will increase the share of small and medium-sized enterprises in government procurement, and in principle all small procurement projects will be reserved for small and medium-sized enterprises.We will support the improvement of investment and financing services for small and medium-sized enterprises, and encourage them to increase, expand financing coverage, and lower prices by improving policies on policy-based guarantees and compensation for financing risks.”Hainan chooses enterprises that meet the requirements of high-quality development and are in the forefront of the segmented fields as the object of cultivation, so as to cultivate small, medium and micro enterprises to develop into ‘specialized and innovative’.”According to CAI Qiang, director of the Hainan Provincial Finance Department, Hainan will give a one-time reward of 1 million yuan to the national “specialized and innovative” small giant enterprises, and 5 million yuan to the national “single champion” manufacturing enterprises.Tax and fee cuts are a key part of the bailout.In the face of the complex and grim domestic and international environment, the central government this year focused on the manufacturing sector, small and medium-sized enterprises, and individual businesses, and implemented more intensive tax and fee reduction policies.In local government work reports, tax and fee cuts are frequently used.According to the jilin Provincial government work report, we should face the needs of market subjects and implement the new combined tax and fee reduction policy.Shaanxi Provincial Government work report proposed that a new combination of tax and fee cuts for market players to reduce the burden of rescue;According to the report on the work of the Henan Provincial government, enterprises’ R&D investment increased by more than 17% by implementing policies such as increasing the proportion of additional deductions for R&D expenses…Tax and fee cuts in many places are more targeted and targeted.”Hunan is expected to add more than 40 billion yuan in burden reduction to boost the efficiency of the bailout of market players.”Shi Jianhui, director of the Hunan Provincial Department of Finance, said that Hunan will strengthen the support for small, medium and micro enterprises, individual industrial and commercial households, manufacturing industry, increase financial resources to foster efforts, plug loopholes in the collection and management of new forms of business and other fields, strictly prohibit illegal and irregular taxation and fees, to achieve a virtuous cycle of “releasing water and raising fish” and “more water and more fish”.”In recent years, a series of policies to cut taxes and fees have effectively alleviated pressure on businesses, stimulated the innovation of market entities, and provided strong support for overall economic and social development.”Li xuhong said that in order to give full play to the effect of tax reduction and fee reduction policies, local governments need to implement relevant policies to the letter, actively simplify the process of enjoying tax reduction and exemption policies, reduce the compliance costs of taxpayers, ensure that taxpayers can enjoy relevant policies in a timely and convenient manner, and fully release the policy dividends.Due to the downward pressure on the economy and the normalization of epidemic prevention and control, local governments will have a more balanced and tight budget this year, which calls for local governments to improve the effectiveness of their policies.Earlier, the Ministry of Finance has set an advance limit of 1.46 trillion yuan for local governments to increase special debt for 2022, so as to better leverage the role of local government debt in shoring up weak spots and stabilizing growth.Everywhere is trying to catch up on work.”The central government allocated 105 billion yuan of government bonds to Sichuan in advance. Adding the 4.3 billion yuan carried over from last year, the total amount of government bonds the province can arrange in advance this year is 109.3 billion yuan.”Mr Hurley said he expected a full bond issue in February to invest the money as soon as possible and generate more physical work in the first quarter.Shi jianhui said that this year hunan will strive for the central fund policy tilt, make good use of infrastructure investment, government bonds and other funds, speed up the issuance and use of special bonds, support moderately advanced infrastructure investment, promote the “two new and one heavy” and other major projects more powerful.Many local government work reports also mentioned that we should guard against hidden debt risks of local governments and ensure fiscal sustainability.”At present, the scale of Chongqing’s debt is under control, and the debt risk is gradually eased.”Shang Kui, director of Chongqing finance Bureau, said that This year, Chongqing will guard against risks in economic operation, strengthen the tracking, assessment and response to risks in related fields, and promote the smooth coordination between fiscal policy and monetary, employment, industry and investment policies to improve the integration effect.”Proactive fiscal policies should be promoted to make them more effective, precise and sustainable, and local governments should use fiscal funds more efficiently.”Xu-hong li suggested that everywhere should perfect budget performance management, performance evaluation and supervision and accountability mechanism, improve the timeliness and effectiveness of fiscal spending, and through timely recover the balance of funds revitalize the stock funds, and improve the use efficiency of financial capital, in order to guarantee the sustainability of the fiscal policy to provide strong support.(Economic Daily Reporter Li Hualin)