Lan Foan, Minister of Finance of China, said at the 2024 annual meeting of the China Development Forum, which opened on the 24th, that in the new year, the Ministry of Finance will focus on promoting high-quality development, cultivating new quality productivity, strengthening cross-cyclical and counter-cyclical adjustment, comprehensively solving cyclical and structural problems in economic development, organically combining supply-side reform and demand-side management, and promoting stable and healthy economic and social development. The annual meeting was held shortly after the conclusion of the National People's Congress and the National People's Congress of the People's Republic of China. Topics such as the momentum and prospects of China's sustainable development and China's macro policy orientation became the focus of attention of the participants. The Central Economic Work Conference at the end of last year made it clear that the proactive fiscal policy in 2024 should be moderately strengthened, improved in quality and efficiency, and the Chinese government's work report further made arrangements and arrangements for the implementation of the proactive fiscal policy. The deficit ratio was arranged at 3 percent, with a deficit of 4.06 trillion yuan, 3.9 trillion yuan of new local government special bonds, 1 trillion yuan of ultra-long-term special treasury bonds, and 10.2 trillion yuan of transfer payments from the central government to local governments, an increase of 4.1 percent over the same period...... Citing a series of data, Lan Foan introduced to the guests at home and abroad how China's active fiscal policy this year has "moderately strengthened, improved quality and efficiency".
On March 24, Minister of Finance Lan Foan spoke at the 2024 Annual Meeting of the China Development Forum. Photo by Xinhua News Agency reporter Li Xin
Specifically, how will finance support high-quality development? Lan Foan said that it will focus on five aspects of work.
-- Supporting the acceleration of the development of new quality productive forces and injecting strong momentum into high-quality development.
The development of new quality productivity is an inherent requirement and an important focus to promote high-quality development, and the characteristic of new quality productivity is innovation. Lan Foan said that in recent years, the Ministry of Finance has insisted on giving priority to scientific and technological innovation as a key area, and under the guidance of financial funds, the research and development expenditure of the whole society has ranked second in the world, with an average annual growth rate of more than 10%. The next step will be to strengthen policy integration, increase support for innovation and development, promote high-level scientific and technological self-reliance and self-reliance, coordinate and promote the upgrading of traditional industries, the growth of emerging industries, and the cultivation of future industries, develop new quality productivity according to local conditions, and shape new momentum and new advantages for development.
-- Supporting the expansion of effective demand and enhancing the endogenous driving force for development.
In 2023, China's final consumption will contribute 82.5%, driving economic growth by 4.3 percentage points. Lan Foan said that in the next step, the Ministry of Finance will continue to organically combine the strategy of expanding domestic demand with deepening the supply-side structural reform, expand effective investment, stimulate potential consumption, and enhance the role of domestic demand in driving economic growth.
A few days ago, the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in". "We will adhere to the linkage between the central and local finances to support large-scale equipment renewal and trade-in of consumer goods. Lan Foan said that the Ministry of Finance will also actively promote the construction of a unified national market, treat all types of business entities equally in terms of preferential taxes and fees, government procurement, etc., support the consolidation of foreign trade and foreign investment, and enhance the linkage effect of domestic and international markets and resources.
– Supporting the improvement of people's livelihood and well-being, so that all people can share the fruits of development.
As for how to divide the financial "cake", Lan Foan introduced that the Ministry of Finance will adhere to the pressure of retention, free up more financial resources for education, medical care, social security, environmental protection and other areas of people's livelihood, and steadily improve the level of people's livelihood security in the process of development. In the next step, we will continue to do our best and do what we can, strengthen the construction of basic, inclusive and comprehensive people's livelihood, and continue to enhance the people's sense of gain, happiness and security.
– Supporting the expansion of high-level opening-up and actively participating in global economic governance.
"In today's economic globalization, there is no isolated island, and openness is the only way to prosperity. Lan Foan said that the Ministry of Finance will strengthen international financial exchanges and cooperation, strengthen communication and coordination with major economies in macroeconomic policies, practice true multilateralism, deepen pragmatic cooperation with multilateral development institutions, and work together in the arena of openness and cooperation to achieve each other, and jointly promote global economic recovery and development;
-- Deepening the reform of the fiscal and taxation system and enhancing the capacity for sustainable development.
To realize Chinese-style modernization, it is necessary to combine medium- and long-term goals with short-term goals, and bring into play the potential and enthusiasm of all parties. "In accordance with the deployment of the CPC Central Committee and the State Council, we will actively plan a new round of fiscal and taxation system reform, establish and improve a modern fiscal system that is compatible with Chinese-style modernization, effectively prevent fiscal risks, and continuously enhance fiscal sustainability. Lan Foan said.
Source: Xinhuanet
Edit: Ruyue
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