The Ministry of Finance released a report on the implementation of China's fiscal policy in the first half of the year to support local governments to make full use of the special debt limit

time:2022-09-29 16:33:35 source:clevelanddrifters.com author:Hot industry
The Ministry of Finance released a report on the implementation of China's fiscal policy in the first half of the year to support local governments to make full use of the special debt limit

The "Report on the Implementation of China's Fiscal Policy in the First Half of 2022" released by the Ministry of Finance on August 30 pointed out that in the second half of the year, the Ministry of Finance will implement a detailed and proactive fiscal policy. Continue to implement various combined tax and fee support policies and continue to release policy dividends. Make good use of local government special bond funds and support local governments to make full use of the special debt limit. Strengthen the linkage between fiscal and monetary policies, support the implementation of policy-based development financial instruments, and realize the comprehensive effect of expanding effective investment, driving employment, and promoting consumption. Implementing the combined tax and fee support policy for tax rebates and tax reductions is a key measure to stabilize the macroeconomic market. The report said that in the second half of the year, various combined tax and fee support policies will continue to be implemented, and policy dividends will continue to be released. According to the report, in the first half of the year, 507.4 billion yuan of new tax rebates, tax and fee reductions were added, and 1,845.5 billion yuan of tax rebates were processed. It is estimated that the annual tax rebate will be about 2.64 trillion yuan, of which about 1.64 trillion yuan will be retained. "Tax rebates and tax reductions are a proactive fiscal policy on the government's revenue side." said Yang Zhiyong, deputy dean of the Chinese Academy of Social Sciences' Institute of Economics and Strategy. The main body generally benefits, and it can effectively expand enterprise investment. The report shows that the implementation of tax reduction and tax rebate policies has been accelerated. The value-added tax credits will be refunded on a large scale in advance. Focus on small and micro enterprises and key industries to increase tax rebates. From April 1 to June 30, a total of 1,865,000 taxpayers across the country processed 1,722.2 billion yuan in tax refunds. In addition, in the first quarter, the old policy of 123.3 billion yuan in tax refunds was continued, and the total amount in the first half of the year was 1,845.5 billion yuan. The amount of tax refunds paid to the taxpayer's account has reached 2.9 times the scale of tax refunds processed in the last half year, and the "large-scale implementation" of the residual tax refund policy has been successfully realized. Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute, believes that the large-scale VAT credit and refund policy will help drive the gradual improvement of corporate operations, support the accelerated recovery of corporate sales, and promote the rapid growth of new economic drivers. The report on making good use of local government special bond funds is clear. In the second half of the year, local government special bond funds will be used well to support local governments in making full use of the special debt limit. Since the beginning of this year, the Ministry of Finance has reasonably arranged special bonds for local governments to ensure the construction of key projects. From January to June, a total of 3.41 trillion yuan of new special bonds were issued in various regions, and the issuance tasks were basically completed. Under the circumstance that the issuance of the new special bond quota has basically been completed, the current balance of local special bonds has not yet reached the debt limit, and there is room for revitalization. The executive meeting of the State Council held a few days ago made it clear that the local balance limit of more than 500 billion yuan of special bonds will be fully used according to law, and the issuance will be completed before the end of October. Liu Yu, chief fixed income analyst of GF Securities, believes that the local balance limit of more than 500 billion yuan of special bonds may be used mainly for project investment according to law. The report shows that in 2022, there will be 71,000 reserve special bond projects in two batches. In the first half of the year, the newly issued special bonds supported more than 23,800 projects, including about 10,800 projects under construction and about 13,000 new projects. At the same time as the active fiscal policy is exerting force, the monetary policy adjustment with stable growth as the main orientation is also increasing recently. The report stated that in the second half of the year, the linkage between fiscal and monetary policies will be strengthened, and the implementation of policy-based development financial instruments will be supported to achieve the comprehensive effect of expanding effective investment, driving employment, and promoting consumption. According to Lian Ping, Chief Economist and Dean of the Research Institute of Zhixin Investment, to strengthen the linkage between fiscal and monetary policies, on the one hand, monetary policy releases medium and long-term liquidity, reduces the cost of bank bond purchases, improves the ability to purchase government bonds, and supports The government issues debt financing to enhance the policy effect of the proactive fiscal policy on stimulating infrastructure investment and household consumption; on the other hand, increasing the money supply and reducing the market interest rate, while the proactive fiscal policy drives the expansion of the financing needs of the real economy, it also satisfies the real economy's demand for funds. The need for cost reductions.

(Responsible editor:Stock market)

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