Active fiscal policy continued to make efforts to stabilize growth

This year's government work report proposed that active fiscal policies should improve efficiency and pay more attention to accuracy and sustainability. At the same time, a number of financial work arrangements have been clarified, including a deficit rate of about 2.8%, 26.7 trillion yuan of national general public budget fiscal expenditure, about 2.5 trillion yuan of tax rebates and tax reductions, and nearly 9.8 trillion yuan of central to local transfer payments. A series of data and policies released recently show that the intensity of fiscal expenditure is increasing, the progress is accelerating, and the support for small and micro enterprises and manufacturing is strengthening. Under the background of appropriate policies, active fiscal policy plays a more prominent role in stabilizing growth.
According to the recently released data, financial departments at all levels have stepped up the implementation of active fiscal policy requirements, especially the significant growth of central fiscal expenditure and the strong guarantee of expenditure in people's livelihood and key areas. According to the data of the Ministry of finance, from January to February this year, the national general public budget expenditure increased by 7% year-on-year, and the progress of budget expenditure was 14.3%, the highest in recent five years. Among them, the expenditure of the central general public budget increased by 4.6% year-on-year, reflecting the more prominent positive role of the central finance. Among the main expenditures, except for the year-on-year decline in transportation expenditure, others were positive growth. Expenditure on education, science and technology, transportation and other fields increased significantly, reflecting the continued increase in financial support for scientific and technological innovation and ensuring people's livelihood. In particular, the acceleration of fiscal expenditure on infrastructure is expected to further support infrastructure investment in the second quarter, which plays an important role in stabilizing growth and improving economic quality. In addition, maintaining a large-scale fiscal expenditure on people's livelihood is conducive to promoting consumption and investment and further expanding domestic demand.

As an important part of the tax support policy, the executive meeting of the State Council held on March 21 deliberated and approved the specific policy arrangements for the implementation of large-scale tax rebate in 2022 according to the deployment of the government work report, and further refined the schedule, tax rebate conditions and supporting support of the Central Government: first, accelerate the progress of policy implementation, partially relax the tax rebate conditions, and impose restrictions on small and micro enterprises in all industries For individual industrial and commercial households that pay taxes according to the general tax calculation method, the tax rebate is nearly 1 trillion yuan; The second is to clarify the stock of value-added tax and the time of incremental tax rebate for enterprises in six industries: manufacturing, scientific research and technical services, power, heat, gas and water production and supply, software and information technology services, ecological protection and environmental governance, transportation, warehousing and postal services; Third, in order to speed up the implementation of local policies, the central government will give greater financial support. On the basis of bearing 50% of the tax rebate funds according to the current tax system, three special projects will be established by arranging 1.2 trillion yuan of transfer payment funds to support the grass-roots level in implementing tax rebate, tax reduction and fee reduction, ensuring employment and ensuring basic people's livelihood.

Small and micro enterprises are the new force for development and the main channel for employment. Manufacturing industry is the cornerstone and foundation of national development and needs key support and support. Stabilizing these market players can stabilize employment and economic fundamentals. The executive meeting of the State Council made it clear that key industries such as small and micro enterprises and manufacturing industry are the key objects of value-added tax rebate. The large-scale rebate policy can directly provide cash flow for enterprises, alleviate the pressure of capital return, and promote them to speed up technological transformation and equipment renewal by returning real gold and silver to enterprises. At the same time, the policy sends a clear positive policy signal to the market participants, which can effectively boost the confidence of the market participants, enhance the endogenous driving force of development and promote the steady and healthy development of the economy.

To implement the established policies, scientific and fine policy design is essential. We should strengthen the management of financial funds and promote the release of the effectiveness of the retention tax rebate policy. The meeting called for the establishment of a fund allocation mechanism, monthly allocation and rolling liquidation, so as to ensure that the local treasury dynamically has the funds required for tax refund for half a month. We will strengthen the supervision of funds and the management of the state treasury, ensure that tax refund funds go directly to the main body of the market and local subsidies go directly to the grass-roots level of cities and counties, and resolutely crack down on and severely punish acts such as tax evasion, tax fraud and compensation fraud. Through these fine institutional design arrangements, the tax rebate funds can reach the required market subjects at the first time, broaden their cash flow space and improve the anti risk ability of enterprises.