Tax expenditures turn positive and livelihoods protection strong

From January to November, national general public budget spending increased 0.7% year-on-year——

Tax expenditures turn positive and livelihoods protection strong

The latest data released by the Finance Ministry on December 15 shows that the revenues of the national general public budget in November fell 2.7% year-on-year. After deducting factors such as the increase in the base of earnings paid by certain state financial institutions and central companies during the same period last year, it maintained growth for the sixth consecutive month. It reflects the sustained and stable recovery of the economy.

At the same time, national general public budget expenditures continue to grow with a recovery, and expenditures in key areas such as prevention and control of the new corona pneumonia epidemic, poverty alleviation and the “three guarantees” at the grassroots level they have been strongly guaranteed.

Tax revenues and expenditures maintained stable performance

With the recovery of economic operations, tax revenues have recovered steadily. In November, the revenue of the national general public budget was 1,095.6 billion yuan, a year-on-year decrease of 2.7%. After deducting factors such as the increase in the base of earnings paid by certain state financial institutions and central companies in the same period last year, national revenues increased about 6% in November.

“Faced with the unprecedented impact of the epidemic, the smooth functioning of fiscal revenues and expenditures has not been easy. Under the influence of various macroeconomic policies, the national economy has continued to recover, fiscal revenues have steadily recovered and revenues and Fiscal expenditures and economic development have formed a benign interaction. ” China Fiscal Science Research said Bai Jingming, a researcher at the institute.

Statistics show that from January to November, the total revenue of the national general public budget was 166.948.9 billion yuan, a year-on-year decrease of 5.3%, which was equal to the budget increase, and the rate of decline was 0.2% less than that from January to October. National tax revenue fell 3.7% and the cumulative drop has been reduced for seven consecutive months.

“Taxes are a barometer of the economy. Continuous improvement in tax revenue reflects continuous improvement of business efficiency and enhancing the vitality of market development,” said Li Xuhong, director of the Institute for Financial Policy and Enforcement and Tax of the Beijing National Accounting Institute.

In terms of spending, from January to November cumulatively, the national general public budget spending was 20.784.6 billion yuan, an increase of 0.7% year-on-year, and the cumulative growth rate turned positive. Among them, central government-level expenditures were 2,975.7 billion yuan, a decrease of 2.3%, local tax expenditures were 1.78 089 trillion yuan, an increase of 1.2%.

In terms of sub-themes, governments at all levels strictly implemented the adjusted day requirements, and expenditures on general public services and urban and rural communities nationwide decreased by 3.2% and 24% respectively. At the same time, spending has been vigorously guaranteed in key areas such as epidemic prevention and control, poverty alleviation and the basic “three guarantees”. Public health expenditures directly related to epidemic prevention and control increased by 71%, and expenditures on social security and employment, housing security, and poverty alleviation increased by 9.8%, respectively. 9.5%, 9.2%.

Lowering taxes and reducing fees play a key role

Since the beginning of this year, in response to the impact of the epidemic, China has successively issued and implemented 7 batches of 28 preferential tax and fee reduction measures. Among them are emergency measures to support the prevention and control of the epidemic, as well as measures to help the industries most affected by the epidemic, and measures to support the resumption of work and production of companies. These policies and measures, combined with last year’s large-scale tax and fee cuts, are expected to reduce the burden on businesses by more than 2.5 trillion yuan this year.

Experts believe that large-scale tax cuts and rate reductions are achieved by strengthening policies in stages and combined with institutional arrangements to release dividends of large-scale tax and fee reduction, effectively cover the impact of the epidemic. and support the prevention and control of the epidemic, help companies overcome difficulties and promote the economy. Restoring growth played an important role.

It is reported that to ensure the effective implementation of tax and fee reductions, the relevant departments have carefully organized and adopted a series of active and effective measures to improve the timeliness and accuracy of policy implementation. On the one hand, increase the intensity of transfer payments to local governments, strengthen local financial security capacities, and establish a direct mechanism to direct new fiscal funds to city and county bases to directly benefit companies and companies. people; on the other hand, increase publicity and interpretation of policies and optimize Tax payment services help companies to make full use of policies.

In general, the tax and fee reduction policies implemented in response to the epidemic are relatively large in terms of absolute value and relative GDP. “This year’s tax and fee reduction policy has played a key role in supporting economic and social development, effectively reducing the burden on businesses and stabilizing market expectations. Most businesses and the general public they have generally enjoyed tangible policy dividends, “said Bai Jingming.

Expedited transfer payment issued in advance

The budget for the basic financial guarantee mechanism at the county level was issued in advance and the budget for transfer payments in the former revolutionary areas was issued in advance … Recently, the Ministry of Finance has intensively issued transfer payments from the central government to local governments in 2021 in advance.

The Ministry of Finance has reportedly continued to increase the advance of transfer payments in accordance with the principle of making all payments. With the exception of special projects such as royal settlement, policy refinement and emergency response, other transfer payment funds have been executed before October 31. Regulations are issued in advance.

Statistics show that the current general public budget transfer payment has been issued before 6.38 trillion yuan. Among them, general transfer payments amounted to 6.21 trillion yuan in advance. In addition, government fund transfer payments reached 43.3 billion yuan in advance and transfer payments for state-owned capital operations reached 1.4 billion yuan in advance.

“The central government issued advance transfer payments to local governments, which improved the predictability of local government budgets and created good conditions for local governments to use financial means to stabilize growth and protect people’s livelihoods.” Bai Jingming said.

It is worth noting that the issuance and use of special bonds across the country is generally good, and special bonds have effectively played a positive role in covering the impact of the epidemic, expanding effective investment and promoting stable operation. macroeconomics. As of November 30, a total of 3.55 trillion yuan in new special bonds had been issued across the country, and the scale of issuance increased by 1.42 trillion yuan year on year. “Giving full play to the benefits of fiscal funds and special debt funds will help promote economic growth and improve people’s livelihoods and well-being,” said Li Xuhong. (Reporter Zeng Jinhua)