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Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

author:High-quality rice planting assistant

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Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

As state organ workers, these civil servants have a stable job, although the monthly salary is not very much, but also on the horizontal line, more importantly, there is no unemployment pressure, and there is a pension after retirement, which is a typical representative of drought and flood protection.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

In previous years, the economic development situation in the mainland was good, and when everyone could get a higher income through entrepreneurship and working in private enterprises, civil servants did not actually seem very good, but with the epidemic and the downturn of the economic situation, people gradually saw the stability of civil servants, so in the past two years, the number of people who choose to take the public examination has been increasing, and the public examination has also become a popular choice for some fresh graduates.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

But the "iron rice bowl" of civil servants can not be foolproof now, I believe many friends have paid attention to it, recently Shanxi, Guangdong Huizhou and other places are implementing the streamlining of civil servants and public institutions and other staff, to put it simply, it is to lay off some civil servants, some have a small population, smaller counties and even the scale of layoffs has reached 20%, the iron rice bowl has been broken, and civil servants are no longer synonymous with stability.

As for why these places have cut civil servants, the main reason is that the finance cannot support such a large number of civil service expenditures, and there are also reasons for the shift in the mainland's demographic dividend.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

First of all, the problem of fiscal unsupport, which is divided into two problems, the local fiscal deficit and the huge amount of local debt. Local fiscal deficits are easy to understand, that is, local governments' revenue is less than expenditure, and the money earned is not enough to fill the holes spent, which causes fiscal deficits.

Take Shanxi Province, which first began to lay off civil servants this time, as an example, according to the 2022 Shanxi Provincial Government Financial Report, the general financial expenditure of Shanxi Province in the whole year was more than 500 billion yuan, while the fiscal revenue was only more than 300 billion yuan, which means that the fiscal deficit of Shanxi Province reached more than 200 billion yuan last year.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

Last year, the central government transferred more than 250 billion yuan to Shanxi Province, basically plugging the hole in this fiscal deficit.

And not only Shanxi Province, according to the 2022 financial reports of local governments, we will find that almost all of the 31 provinces, municipalities and autonomous regions in the mainland have a fiscal deficit problem, and the problem now is that the central government has money and the local government has no money, and local governments can only get through the financial crisis through central transfer payments, so it is imperative to streamline the scale of civil servants in various places.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

In addition to the problem of fiscal deficit, the bigger problem in various localities is the problem of local debt, which is the real reason why various localities have successively introduced policies to lay off civil servants, because this hole cannot even be covered by the central government. Today, the local debts of mainland provinces and cities have exceeded 60 trillion yuan, and the interest generated every day is hundreds of billions of yuan.

Take Dushan County in Guizhou as an example, this small county town of only 200,000 people has an annual fiscal revenue of only 1 billion yuan, and the scale of local debt exceeds 40 billion yuan, even if everyone in the county does not eat or drink, it will take a full 40 years to repay this debt.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

In the past ten years, in order to develop, in addition to selling land to make money, local governments can only raise funds by borrowing, which is no problem when the economic situation is better, because although the debt is increasing, but the industry in various places is also developing rapidly, a certain local debt can also play a benign role, so that the development of some places more rapidly, but when the economy comes down, the problem of the huge scale of local debt is exposed.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

After all, this is a problem of government credit, once the credit is lost, then the government's credibility is lost, at this time the central government has to make a bottom, but as mentioned earlier, although the central government has money, but it is not enough to make up for the hole of 60 trillion local debts, so all localities will successively introduce policies to cut civil servants, reduce expenditure, in order to raise funds to help the central government reduce financial pressure.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

What we need to know is that the reduction of civil servants is only one of the measures taken by local governments to reduce financial pressure, other methods such as suspending the payment of civil servants' salaries, reducing civil servants' salaries, and directly reducing the measures of 20% or more are constantly being introduced.

In addition to the local fiscal deficit and local debt crisis, there is also an important reason for the reduction of civil servants, that is, the population of the mainland has reached an inflection point, and some places no longer need so many civil servants, the most representative of which are teachers, doctors and other staff.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

Whether it is a teacher or a doctor, it is a profession closely related to the number of people, but in recent years, the birth rate of babies in the mainland has gradually decreased, and the number of newborns per year has been less than 10 million, and large cities are constantly attracting population due to income, infrastructure and other reasons, resulting in the loss of population in many small cities.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

According to the latest census results, many provinces and cities in the mainland have the problem of population loss, many provinces except the provincial capital population is still growing, other places are all losing population, population siphon phenomenon is affecting the population structure of the mainland, perhaps in many years, some cities and even towns will no longer exist.

Painful reform, in order to obtain central financial assistance, some local civil servants may lay off 20% of their workforce?

Without the population, naturally there will be no newborns, so whether it is kindergarten teachers, teachers or doctors, the number of needs will not be so much, some time ago it was even exposed that some local schools have more teachers than students, such a situation must be streamlined or even abolished public servants, otherwise there will be a situation of floating people.

All in all, the policy of streamlining public servants in various parts of the mainland today is because of today's unique economic situation and demographic situation, civil servants live a good life when the national situation is good, and now that the national situation is difficult, it is natural to help the country share worries, and at the same time, I hope that some friends who are taking public examinations will pay more attention to career choices and work location choices.

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