The deficit rate is planned to be lowered to around 2.8% Expert: It is conducive to enhancing fiscal sustainability
Source: People’s Daily Online
The deficit rate is planned to be around 2.8%, which is lower than last year; it is planned to arrange 3.65 trillion yuan of special bonds for local governments… In the government work report submitted for deliberation on March 5, a number of fiscal tasks for this year were clarified The arrangement has attracted attention from all walks of life.
It is worth noting that in this year’s government work report, the deficit rate is planned to be around 2.8%, which is lower than last year.
Fiscal deficit refers to the part where fiscal expenditure exceeds fiscal revenue, and the deficit ratio refers to the proportion of fiscal deficit to GDP. By adjusting the deficit rate and deficit scale, the intensity of fiscal policy can be adjusted to a certain extent.
The reporter combed my country’s deficit rate in the past three years and found that under the influence of the epidemic in 2020, my country’s fiscal deficit rate has increased to above the international warning line of 3%, and is set to be above 3.6%. In 2021, as the economic situation recovers, the fiscal deficit rate will drop to 3.2%. This year, it was further lowered by 0.4 percentage points from last year to 2.8%, returning to the level of 2019.
Does the reduction in the deficit rate mean that the intensity of fiscal spending has weakened?
In this regard, this year’s government work report pointed out that fiscal revenue is expected to continue to grow this year. In addition, certain state-owned financial institutions and franchised institutions have legally turned over their profits from recent years and transferred them into budget stabilization funds. The scale of expenditure has increased by more than 2 trillion yuan compared with last year. , the available financial resources have increased significantly.
At the first “Minister’s Channel” of the Fifth Session of the 13th National People’s Congress held on the 5th, Minister of Finance Liu Kun further explained the reduction of the deficit rate. Liu Kun said that the appropriate reduction of the deficit rate is an important measure to maintain fiscal sustainability. By coordinating financial resources, the fiscal expenditure intensity of the national general public budget this year will not only not decrease, but will be greatly improved compared to last year.
“The intensity of fiscal expenditure is guaranteed.” Liu Kun pointed out that this year’s deficit rate is planned to be around 2.8%, which is 0.4 percentage points lower than last year’s budget, and the scale of funds is reduced by 200 billion yuan; The funds transferred into the general budget amounted to 1.267 trillion yuan, which is equivalent to raising the deficit rate by 1 percentage point.
Experts believe that this year, bringing the deficit rate back to less than 3% has released a signal that my country’s economy and fiscal operations are sound and can boost market confidence.
Zhang Lianqi, a member of the Standing Committee of the National Committee of the Chinese People’s Political Consultative Conference, pointed out in an interview with a reporter from People’s Daily Online that this year, active fiscal policies have improved their effectiveness. The deficit ratio is arranged at around 2.8%, which is determined after 3.6% in 2020 and 3.2% in 2021, which is conducive to enhancing fiscal sustainability.
“The deficit rate of 2.8% is an arrangement made under the expected continuous growth of fiscal revenue.” Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute, said in an interview with a reporter from People’s Daily Online that this arrangement is conducive to reasonable arrangements. The scale of debt can effectively prevent and defuse risks. At the same time, the expansion of fiscal expenditure by more than 2 trillion yuan will drive enterprise investment, create jobs, and improve residents’ income, thereby expanding total social demand, boosting economic growth, and effectively coping with the current downward pressure on the economy.
Li Xuhong said that while the deficit rate is planned to be around 2.8%, China also plans to arrange 3.65 trillion yuan of local government special bonds this year, the same as last year. The issuance of local government special bonds will not only help meet local financing needs and ensure the completion of key projects and major tasks, but also stimulate effective investment and stabilize the macroeconomic market by expanding government spending.Return to Sohu, see more
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