Active fiscal policy should be strengthened to improve efficiency -- An interview with Liu Kun, Minister of Finance
2023-01-04
The Central Economic Work Conference requires that in 2023, we should adhere to the principle of "keeping the word stable and seeking progress while keeping it stable", continue to implement positive fiscal policies and prudent monetary policies, increase macro policy regulation, strengthen coordination and cooperation of various policies, and form a joint force to jointly promote high-quality development. How can we better play the role of finance to maintain stable economic operation and continuously improve people's wellbeing? To better coordinate development and security, effectively prevent and defuse major risks, how can we achieve fiscal sustainability and controllable local government debt risks? The reporter interviewed Liu Kun, Minister of Finance. Moderately increase the expansion of fiscal policies and improve the effectiveness of policies. Reporter: According to the deployment of the Central Economic Work Conference, positive fiscal policies in 2023 should be strengthened to improve the effectiveness. What kind of consideration is this based on? In what ways will the "afterburner" be strengthened? In what ways will "improving efficiency" tap into efficiency? Liu Kun: The positive fiscal policy has enhanced efficiency, reflecting the general tone of seeking progress while maintaining stability, taking into account needs and possibilities, current and long-term, development and security. At present, the foundation of China's economic recovery is not firm, the triple pressures of demand contraction, supply shock and expected weakening are still large, and the external environment is volatile. To address these risks and challenges, we need to strengthen fiscal macro-control, optimize the combination of policy tools, and ensure fiscal sustainability and controllable local government debt risks in effectively supporting high-quality development. "Afterburner" means to moderately increase the expansion of fiscal policy. How? I understand that there are three aspects: first, to increase the intensity of financial expenditure. We will coordinate policy instruments such as fiscal revenues, fiscal deficits, and interest discounts, and appropriately expand fiscal spending. The second is to boost the investment in special bonds. Reasonably arrange the scale of special bonds issued by local governments, appropriately expand the scope of investment and capital funds, and continue to form a driving force for investment. Third, we will increase efforts to drive financial resources to sink. We will continue to increase the transfer payments from the central government to local governments, give preference to poor areas and underdeveloped areas, and ensure the bottom line of "three guarantees" at the grass-roots level. To "improve efficiency" is to improve policy effectiveness. On the one hand, we will improve preferential tax policies, enhance accuracy and pertinence, and focus on helping enterprises to rescue. On the other hand, we should optimize the structure of fiscal expenditure, give better play to the role of fiscal funds in "allocating a thousand catties from four sources", effectively drive the expansion of social investment and promote consumption. At the same time, we should strengthen coordination and cooperation with monetary, industrial, scientific and technological, and social policies to form policy synergy and promote the overall improvement of economic operation. Reporter: In recent years, local government special bonds have played an important role in supporting economic and social development and stabilizing investment. How about the implementation and use of special bonds in 2022? In 2023, what are the considerations for promoting and solving the problem of "money and other projects" and improving the efficiency of capital use? Liu Kun: The special bonds of local governments are an important means to promote the expansion of effective investment and stabilize the macro-economy. Since 2018, we have arranged a total of 14.6 trillion yuan of new local government special bonds. Among them, by the end of November 2022, 4 trillion yuan of new local government special bonds had been issued, and the actual expenditure of project units had totaled 3429.8 billion yuan. It supported the construction of nearly 30000 key projects, and focused on making up for weaknesses, increasing stamina, and benefiting people's livelihood. In 2023, we
Edit：wangwenting Responsible editor：xiaomai
Source：china.cn
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