[ad_1]
Original title: Party in the “tight days” of the Yumin government for the people “Good morning”
Look at China’s macroeconomic policies during the “13th Five-Year Plan” period, such as tax cuts and tariff cuts, special national debt … a number of buzzwords are eye-catching, behind which are proactive fiscal policies.
“A proactive fiscal policy must be more proactive.” “A proactive fiscal policy must vigorously improve quality and efficiency, and pay more attention to structural adjustment.” Subtle changes to these policies have far-reaching implications. Jiang Zhen, a research associate at the Institute of Financial and Economic Strategy of the Chinese Academy of Social Sciences, said that the “Thirteenth Five-Year Plan” is a special and critical period. China’s economy is facing a new stage from rapid growth to high-quality growth. Finance is the foundation and important pillar of national governance. Reform is also imperative.
Regarding “reform”, Finance Minister Liu Kun understands that proactive fiscal policy is more proactive. This is not a strong “flood” stimulus, but rather a forward-looking, flexible and effective policy enhancement. Play a greater role in expanding domestic demand and structural adjustment to promote high-quality economic development.
To do this, finance must work in two aspects: on the one hand, strengthen the countercyclical adjustment, consolidate and expand the effectiveness of the reduction of taxes and fees and maintain a reasonable and adequate intensity of fiscal spending; on the other hand, optimize the allocation and structure of funds and improve the efficiency of use. The core of both is “saving resources and enriching people,” Liu Kun said: “Limited financial resources should be used at the forefront.”
Tax reduction and fee reduction take hold
If you want to pick a hot term for taxation and taxes during the “13th Five-Year Plan” period, “tax reduction and fee reduction” will certainly take center stage.
The reduction of taxes and fees is the most important manifestation of a proactive fiscal policy. Over the past five years, with the steady growth of economic aggregates, China’s tax revenue has maintained a steady growth overall. At the same time, combined with reforms of the tax system, focusing on reducing the tax burden of manufacturing and small and micro enterprises, China has implemented large-scale tax cuts and tariff reductions, and dividends from tax cuts have been continuously released. .
According to statistics, cumulative tax and fee cuts from 2016 to 2020 will exceed 7.6 trillion yuan, especially with the implementation of larger tax and fee cuts in 2019. New tax and fee cuts for the whole year reached the 2.36 trillion yuan. It represents more than 2% of GDP, which drives annual GDP growth by approximately 0.8 percentage points.
Shi Wenwen, director of the Tax and Financial Law Research Center at the China University of Political Science and Law, told reporters for China Youth Daily and China Youth Daily that this is truly “internal” reform.
Tax cuts and rate reductions were not only proposed in 2019. In the past, various departments also took some reform measures, but the benefits that have fallen to the people are not obvious. One supporting data set is that the growth rate of tax revenue is often much higher than that of GDP.
In 2019, GDP increased 6.1% year-on-year, tax revenue increased 3.8% year-on-year, and the rate of growth of GDP exceeded that of tax revenue. “The government is really moving,” Shi Wenwen said, the tax cuts and tariff cuts must be implemented in real terms.
In a period of increasing downward pressure on the economy, this has given market players valuable confidence. Zhang Lianqi, a member of the Standing Committee of the National Committee of the Chinese People’s Political Consultative Conference and vice president of the Tax Society of China, believes that during the period of the XIII Five-Year Plan, the “burden” of taxes and fees on Chinese companies will be It has eased and the “pocket” of companies has increased. Appear.
A notable example is the outbreak of new corona pneumonia earlier this year, which brought difficulties to companies’ production, but soon, the deployment of a series of tax and tariff reduction measures reduced the burden on companies. companies and increased their confidence in development.
In September this year, the State Tax Administration released the prosperity survey data of 100,000 businesses from key tax sources that it monitored. The data shows that 89.4% of companies from key tax sources expect the production and operation situation in the fourth quarter of this year to be “stable” or “improving”, an increase of 4.7 percentage points over third trimester forecast. Data from value-added tax invoices show that in August this year, the total amount of goods and services purchased by businesses across the country increased by 9.6% year-on-year, which was 0.2 percentage points higher. faster than the growth rate of sales revenue, reflecting that companies are confident in their business prospects.
“Financial and fiscal responsibility” stands out in times of crisis. The fiscal transfer of more resources to market entities will help further stimulate market vitality and cultivate endogenous power. The implementation of large-scale tax cuts and tariff reductions will highlight the contradiction between tax revenue and spending in the short term, but in the long term, with the improvement of business efficiency and the expansion of the tax base, the tax revenue situation will gradually improve. Liu Kun said that in order to calculate large and long-term accounts, even if the immediate difficulties are great, we must decisively implement relevant policies and measures to reduce the taxes and fees that should be reduced.
“Hold onto the green hills and win the future. The more difficult the moment, the more the government must hurry.” Shi Zhengwen said that tax revenue is taken from the people and used for the people, and the “pocket” is focused on increasing the expenses for the companies and the people. This responsibility reflects the government of the people.
Proactive finance is under pressure
Tax cuts and spending increases are two important tools for proactive fiscal policy.
From 2016 to 2019, the national fiscal deficit increased from 2.18 trillion yuan to 2.76 trillion yuan. This year, in response to the impact of the epidemic, it has risen further to 3.76 trillion yuan. By coordinating tax revenue, deficits, and the invocation of budget stabilization funds, tax expenditures increased from 14 trillion yuan in 2013 to 23.9 trillion yuan in 2019, an average annual increase of 9.6%, higher than the average annual growth rate of tax revenues during the same period 2.4 percentage points. This year’s budget has fiscal expenditures of 24.8 trillion yuan and continues to maintain a relatively high spending intensity.
At the same time, in order to support the stabilization of local investment, make up for deficiencies and issue special local government bonds, the new debt limit will be increased from 100 billion yuan to 3.75 trillion yuan from 2016 to 2020, playing a lever role to stimulate investment. The financial funds can be seen in the development of the three great battles, agriculture, rural areas, education, health care, social security and housing.
Liu Kun said that the “13th Five-Year Plan” is a period of historical importance. We are right at the historic intersection of the “two centenarians” goals. We must not only build a well-to-do society in a comprehensive way and achieve the first goal of the centenary, but also seize the momentum to start a new journey of building a modern socialist country in a comprehensive way.
In the past five years, faced with complex and changing internal and external situations, China’s economy has maintained a constant and positive trend, but it has also faced many difficulties and challenges. An important prerequisite for maintaining the stability and long-term development of China’s economy is to create a stable and predictable macroeconomic environment. To achieve this, there is no question that finances must be kept under pressure and vigorously improve quality and efficiency.
What protects the livelihood of the people is suppressing the “three public funds”, which can be seen in the government’s annual work report.
For example, in 2020, the government will include a ban on building new buildings, a ban on extravagance and waste in the government work report, demanding that governments at all levels really live a “strict life”, the government The central government must take the initiative and the central government must organize negative growth in spending. There is an urgent need to reduce non-rigid expenses by more than 50%.
At the same time, we must vigorously optimize the structure of tax expenditures, basic expenditures for people’s livelihoods will only increase unabated, and expenditures in key areas must be effectively guaranteed. This is reflected in the figures, as the urban and rural compulsory education subsidy has increased by 8.3%; the per capita financial subsidy standard for resident health insurance has been increased by 30 yuan to 550 yuan per person per year, and the personal payment standard has been simultaneously increased; the basic pension for retirees has been raised by 5% and moderately increased The minimum standard of basic pension for urban and rural residents …
Li Keqiang, Prime Minister of the State Council, said that in order to vigorously improve quality and efficiency, various expenses must be carefully calculated, each money must be spent on the important and cutting-edge points, and market entities and people must have a real feeling.
This should really insist on saving resources and making people rich. Yu Hong, vice dean of the China Institute of Public Finance at Shanghai University of Finance and Economics, said that, unlike in the past, the obvious characteristic of active finance during the 13th Five-Year Plan period is reflected in structural adjustments. In the current situation, where the pressure on the balance of fiscal revenues and expenditures continues to increase and the space for afterburning is limited, in order to ensure that people’s livelihoods are effectively improved, the only way to highlight the requirements of improving the quality of policy and targeting efficiency in structural adjustment.
He said proactive finance requires the “tight days” of the government in exchange for the “good morning” of the people and, more importantly, more proactive fiscal policies to help the economy remain stable and long-term.
China Youth Daily and China Youth Daily reporter Zhang Junbin Source: China Youth Daily
Version 04 on November 06, 2020
