On April 22, the Information Office of the State Council held a press conference, at which Vice Minister of Finance Wang Dongwei introduced the fiscal revenue and expenditure in the first quarter of 2024. Some of the key points are as follows:
In the first quarter, 24.5 percent of the country's general public budget expenditure was completed, higher than the average level of the past three years, and more than 80 percent of the transfer payment budget was reached.
In February this year, the Ministry of Finance issued all the funds for the issuance of 1 trillion yuan of additional treasury bonds to the local governments in advance, and urged and guided the local governments to implement them in a timely manner to specific units and projects, and to speed up the arrangement and use according to the progress of the project construction.
It has established a mechanism for the separate allocation of funds from the treasury for the issuance of additional treasury bonds, and has guided local governments to speed up the implementation of projects and continue to do a good job in supervising the issuance of additional treasury bonds.
Guide local governments to make good use of the 224.9 billion yuan of additional treasury bond funds issued by the end of 2023, and promote high-quality and efficient projects such as high-standard farmland construction and irrigation area transformation and upgrading.
According to the distribution of ultra-long-term special treasury bonds, the issuance of ultra-long-term special treasury bonds will be launched in a timely manner.
Coordinate and make good use of policy tools such as the issuance of additional treasury bonds, local government special bonds, investment in the central budget, and vehicle purchase tax funds, and promote the construction of key areas and major projects.
We will work with relevant departments to support some large and medium-sized cities to implement urban renewal actions and carry out underground pipe network renovation.
At present, the Ministry of Finance is strengthening the review and control of projects in terms of project maturity, financing income balance, and compliance with the use of funds, so as to improve the quality of project reserves.
More new energy, new infrastructure, and new industries will be included in the investment areas of special bonds, and "independent new energy storage" and "comprehensive water environment management in key river basins" will be included in the scope of special bond support, and "affordable housing" will be included in the scope of special bonds as project capital.
The issuance scale in the first quarter is smaller than in previous years, on the one hand, in response to the impact of special factors such as the impact of the epidemic in previous years, the increase in the issuance scale at the beginning of the year, and on the other hand, it is also related to the demand for local project construction funds, construction conditions in winter and spring, bond market interest rates and other factors.
We will work with relevant departments to guide local governments to reasonably grasp the rhythm of special bond issuance, optimize the pace and intensity of government investment, guide and ensure the capital demand of major projects, and improve the performance of bond funds.
We will continue to promote the prevention and resolution of local government debt risks, accelerate the implementation of debt reduction plans, and promote the reform and transformation of local government financing platforms by category.
Vice Minister of Finance Wang Dongwei:
Ladies and gentlemen, friends from the media, good afternoon! It is a great pleasure to meet you again, and I would like to thank you for your long-term attention, concern and support for the financial work. First of all, I would like to give a briefing on the fiscal revenue and expenditure in the first quarter of this year.
Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, we have conscientiously implemented the spirit of the Central Economic Work Conference and the spirit of the National "Two Sessions", implemented the decisions and arrangements of the Government Work Report, and appropriately strengthened the active fiscal policy to improve quality and efficiency. We will continue to make good use of the fiscal policy space, strengthen the overall planning of fiscal resources, and optimize the combination and use of various policy tools to promote a sustained economic recovery. In the first quarter, the fiscal revenue and expenditure operated smoothly, showing the following three characteristics:
First, fiscal revenues continue to maintain a restorative growth trend on a comparable basis. In the first quarter, the national general public budget revenue was 6,087.7 billion yuan, down 2.3 percent year-on-year. After deducting the impact of special factors, the comparable growth rate was about 2.2%, continuing the recovery growth trend. What are the special factors? Here is also an introduction, that is, the partial tax deferment of small and medium-sized enterprises in the manufacturing industry in 2022 in the first few months of 2023 has raised the base, and the four tax reduction policies introduced in mid-2023 have formed a tail reduction in fiscal revenue this year. The national tax revenue was 4,917.2 billion yuan, down 4.9 percent year-on-year, and the tax revenue maintained a steady growth after deducting the impact of the above-mentioned special factors.
Second, the tax revenue of cultural tourism consumption, advanced manufacturing and other industries has grown rapidly. In terms of services, the tax revenue of accommodation and catering, which is highly related to residents' consumption, increased by 44.7 percent, the tax revenue of culture, sports and entertainment increased by 26.7 percent, the tax revenue of transportation, warehousing and postal services increased by 6.8 percent, and the tax revenue of retail trade increased by 5.7 percent, reflecting the continuous release of residents' consumption vitality. In terms of manufacturing, the tax revenue of the manufacturing industry in the first quarter fell year-on-year, and after deducting the impact of incomparable factors such as the above-mentioned tax deferral, warehousing and higher base for small, medium and micro enterprises in the manufacturing industry in the same period last year, it achieved steady growth. Despite the impact of incomparable factors, the tax revenue of some sub-sectors of the manufacturing industry is still growing and performing well. For example, the tax revenue of the railway transportation equipment manufacturing industry increased by 9.5 percent, and the tax revenue of the computer manufacturing industry increased by 6.8 percent.
Third, key expenditures have been better guaranteed. Financial departments at all levels have strengthened the overall planning of financial resources, accelerated the issuance of budgets and the use of additional treasury bond funds, and strengthened the country's major strategic tasks and basic financial guarantees for people's livelihood. At the same time, it is necessary to optimize the structure of fiscal expenditures, strictly implement the requirements of party and government organs that are accustomed to living a tight life, be generous with large amounts of money and stingy with small money, and concentrate financial resources on major affairs. In the first quarter, the country's general public budget expenditure increased by 2.9% year-on-year. Among the main areas of expenditure, the expenditure on social security and employment was 1,270.8 billion yuan, up by 3.7 percent, the expenditure on education was 1,043.6 billion yuan, up by 2.5 percent, the expenditure on urban and rural communities was 561.4 billion yuan, up by 12.1 percent, the expenditure on agriculture, forestry and water resources was 518.5 billion yuan, up by 13.1 percent, and the expenditure on housing security was 204.9 billion yuan, up by 7.8 percent.
In the next step, the Ministry of Finance will solidly implement a positive fiscal policy, strengthen financial management and supervision, and organically combine strengthening macroeconomic regulation and control, focusing on expanding domestic demand, cultivating new momentum for development, and preventing and resolving risks, so as to further improve the quality and efficiency of fiscal policy and consolidate and enhance the positive trend of economic recovery.
I will first introduce the overall situation of fiscal revenue and expenditure in the first quarter. Now, my colleagues and I are ready to answer your questions. Thank you.
Q
Xinhua News Agency:
Just now, Minister Wang introduced that fiscal expenditure increased by 2.9% in the first quarter, and key expenditures have been effectively guaranteed. Could you please elaborate on the expenditures that are undertaken?
Wang Dongwei:
Thank you for your question. In the first quarter, while strictly implementing the requirements of living a tight life and strictly controlling general expenditures, financial departments at all levels continued to strengthen the protection of expenditures in key areas, and the scale of general public budget expenditures nationwide was nearly 7 trillion yuan. In particular, in the first quarter of this year, it still maintained a growth rate of 2.9% in the first quarter of this year under the condition of centralized settlement of related expenses and raising the expenditure base after the transition of epidemic prevention and control in the same period last year, which is not easy, reflecting the active fiscal policy to move forward and improve quality and efficiency. There are three points that I would like to introduce to you:
First, all the funds for the issuance of additional treasury bonds were issued at the beginning of the year. Most of the 1 trillion yuan of additional treasury bonds issued in the fourth quarter of 2023 will be used this year. By the end of February this year, the Ministry of Finance will distribute all the 1 trillion yuan of additional treasury bond issuance funds to the local governments. Judging from the data of the first quarter, the expenditure on urban and rural communities, agriculture, forestry and water resources, disaster prevention and control, and emergency management increased by 12.1%, 13.1%, and 53.4% year-on-year respectively, all of which achieved double-digit growth.
Second, more than 80% of the transfer payment budget has been issued. In 2024, the central government will arrange transfer payments of 10.2 trillion yuan to local governments, a comparable increase of 4.1%. After the National People's Congress approved the 2024 central budget this year, the Ministry of Finance will organize the approval and issuance of the budget in a timely manner in accordance with the provisions of the Budget Law. As of early April, the 2024 budgets of central departments have been fully approved, and the central government's transfer payments to local governments have reached 8.68 trillion yuan, accounting for 85.1% of the budget at the beginning of the year.
Third, the pace of fiscal expenditure has been reasonably accelerated. In the first quarter, 24.5% of the national general public budget expenditure was completed, higher than the average of the past three years. In terms of specific expenditure items, the progress of social security and employment, health, urban and rural communities, transportation, and housing security was relatively fast, of which 30.7 percent was spent on social security and employment, 26.2 percent was spent on urban and rural communities, and 25.1 percent was spent on health and transportation, all of which exceeded the scheduled progress.
That's all I have to answer this question, thank you.
Q
China Financial News:
According to media reports, investors have recently been actively subscribing to savings bonds, and some banks have experienced a situation where it is difficult to find a single debt. What do you think of this phenomenon?
Li Xianzhong, Director of the Treasury Department of the Ministry of Finance:
Thank you for your question. Savings bonds represent the country's credibility, guarantee principal and interest, and stable returns, and have been favored by the majority of investors for a long time. Judging from the issuance of savings treasury bonds in March and April this year, the situation was generally stable, but there was indeed a local contradiction between supply and demand. To illustrate this issue, it is necessary to deal with the varieties of savings treasury bonds and the organization of their issuance, and here I will briefly introduce them. At present, there are two types of savings bonds: certificate and electronic. Thereinto:
Certificate-type savings bonds are sold over the counter in bank outlets, because the customer base of each outlet is different, and the demand is also different, and there are still certain difficulties in flexible adjustment of sales quota between outlets, resulting in a contradiction between supply and demand in some outlets. For example, in the course of the issuance of certificate-type savings treasury bonds in March, the overall sales progress of the Beijing branch of a large commercial bank was 70 percent on the first day, and the sales progress of each treasury bond was 70 percent on the first day for a total of 10 days, but 14 of the 466 outlets in Beijing sold treasury bonds within half an hour, which may result in some investors queuing up at the counters of the outlets not buying treasury bonds.
Electronic savings treasury bonds can be sold over the counter or through online (mobile phones), and the sales amount can be flexibly adjusted between different banks, different outlets within banks, and counters and online (mobile phones). According to statistics, investors over the age of 60 account for 55% of the investors in savings bonds, and these investors prefer to buy over the counter, in order to better protect the bond purchase needs of this part of the traditional customer group, the sales of electronic savings bonds on the first day of issuance are moderately inclined to the counter, and the sales volume of the counter on the first day accounts for 60% of the basic sales of all banks. Therefore, the demand for counter subscription can basically be satisfied.
Since April, due to factors such as the lowering of deposit interest rates by some banks and the suspension of sales of large-amount certificates of deposit, the attention of savings and treasury bonds has further increased. The electronic savings bonds issued in April sold 99.7% of the planned issuance amount on the first day of issuance, which is significantly faster than the average in recent years. From the perspective of counter sales, most banks have a sales time of more than 2 hours. The online (mobile phone) end can accommodate more investors to buy at the same time, and the sales are more concentrated, and there is an instantaneous supply and demand contradiction on the online (mobile phone) side of some banks, and the average sales time of the online (mobile phone) side of 32 banks is about half an hour, but there are 2 banks that last less than 1 minute, which is basically a second light, and another 7 banks are sold out within 6 minutes.
In order to further meet investors' demand for bond purchases, we will take the following four measures in the next step: First, we will pay close attention to the changes in the supply-demand relationship and the sales of savings treasury bonds, and study the appropriate increase in the scale of issuance. The core of "hard to find a debt" is that the demand is strong and the supply is relatively insufficient, so our next step is to study the appropriate increase in the scale of issuance. Second, we will study further lowering the single-person purchase limit so that savings bonds can benefit more investors. Third, on the basis of guaranteeing counter sales, we will continue to improve the information service level of electronic savings treasury bonds, and steadily increase the sales volume of electronic savings treasury bonds on the online (mobile phone) side. At the same time, we will increase publicity to guide more investors to purchase bonds through online (mobile phones) and improve the bond purchase experience. Fourth, in conjunction with relevant departments, we will further optimize the quota allocation mechanism for certificate-type savings bonds, better match outlets with actual needs, and study medium- and long-term arrangements for optimizing the proportion of certificates and electronic savings bonds to better meet investors' demand for bond purchases.
That's all I have to say. Thank you.
Q
CBN Reporter:
In the fourth quarter of last year, the central government issued an additional trillion yuan of treasury bonds, can you give us a detailed account of the use and distribution of treasury bond funds? and what measures the Ministry of Finance has taken to strengthen fund supervision? Thank you.
Wang Jianfan, Director of the Budget Department of the Ministry of Finance:
Thank you for your question. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, and after being reviewed and approved by the Standing Committee of the National People's Congress, an additional 1 trillion yuan of national bonds will be issued in the fourth quarter of 2023 to focus on supporting post-disaster recovery and reconstruction and making up for the shortcomings in disaster prevention, mitigation and relief, which is of great significance for improving the mainland's ability to resist natural disasters as a whole and better protecting the safety of people's lives and property. The Ministry of Finance has conscientiously carried out the implementation, refined the work plan, and done a solid and orderly job in various tasks.
First, it is necessary to carefully organize the issuance of treasury bonds. After the NPC Standing Committee examined and approved the plan for the issuance of additional treasury bonds, the Ministry of Finance promptly adjusted the treasury bond issuance plan for the fourth quarter, optimized the treasury bond issuance window and the structure of maturity varieties, mobilized the members of the treasury bond underwriting syndicate to make good preparations for the debt, and ensured the smooth issuance of additional treasury bonds and raised funds in full. With the coordination and cooperation of all relevant parties, the issuance of 1 trillion yuan of treasury bonds will be successfully completed by the end of 2023.
Second, it is necessary to do a good job in the distribution of treasury bond funds. The National Development and Reform Commission and the Ministry of Finance, together with relevant departments, have established a special working mechanism to organize the declaration and review of treasury bond projects in a timely manner. According to the list of projects determined by the special working mechanism, the Ministry of Finance issued all the 1 trillion yuan of additional treasury bond funds to the local governments in advance in February this year, and urged and guided the local governments to implement them to specific units and projects in a timely manner, and accelerated the arrangement and use according to the construction progress of the project, so as to form a physical workload as soon as possible.
The third is to do a good job in the allocation of funds for the issuance of additional treasury bonds. In December last year, 500 billion yuan was allocated to the local government in two batches, and from January to February this year, 500 billion yuan was allocated to the local government in three batches, and two 500 billion yuan were dispatched.
Fourth, it is necessary to establish a system for the supervision and control of treasury bond funds. The Ministry of Finance has formulated the Measures for the Management of Additional Treasury Bond Funds in 2023 to standardize the allocation and use of treasury bond funds, improve the integrated budget management system, supervise the whole process of additional treasury bond project funds, and promote local regulatory bureaus to establish a normalized supervision mechanism, timely discover and correct existing problems, and promote local governments to standardize the use of funds and improve the efficiency of use.
In the next step, the Ministry of Finance will actively play a functional role, guide local governments to accelerate the implementation of projects, continue to do a good job in the supervision of additional treasury bond funds, ensure that valuable funds are used on the cutting edge, and strive to improve the efficiency of fund use. Thank you.
Q
CCTV reporter from China Central Radio and Television:
We note that in the first quarter of this year, the central government introduced a number of policy measures to support new drivers of economic growth. Could you tell us more about the situation and what are the next policy considerations?
Wang Dongwei:
Thank you for your question, I'll answer that question. Indeed, the central government attaches great importance to cultivating new drivers of economic growth and vigorously supports them. Let me respond in the following ways:
The first is to focus on supporting the high-quality development of the manufacturing industry. Focusing on vigorously promoting the construction of a modern industrial system and accelerating the development of new quality productive forces, the central government has arranged special funds in the manufacturing sector to support the acceleration of the promotion of key technologies and key industries to "make up for shortcomings" and "forge long boards", and promote the leapfrog development of a new generation of information technology, high-end equipment, new materials and other industries. In the near future, we will work with the Ministry of Industry and Information Technology and other departments to implement a new round of financial support policies for small and medium-sized enterprises with "specialization, refinement, special innovation", and cultivate more "supporting experts" in key links of the industrial chain, and start the implementation of the pilot work of new technological transformation cities in the manufacturing industry, and arrange funds of 3 billion yuan in 2024 to support the first batch of about 20 pilot cities to "intelligently transform and digitally transform into networking", so as to improve the high-end, intelligent and green level of manufacturing.
Second, we will strive to promote the development and growth of the digital economy. The central government will focus on the key links of the digital economy to provide support, including supporting the construction of digital infrastructure, cultivating industrial Internet platforms, and promoting the digital transformation of small and medium-sized enterprises, so as to promote the deep integration of the digital economy and the real economy. In the first quarter, the growth rate of added value of information transmission, software and information technology services reached 13.7%. In 2023, we will allocate 3 billion yuan to support 30 pilot cities to carry out pilot cities for the digital transformation of small and medium-sized enterprises, and promote the solution of the problems faced by small and medium-sized enterprises "dare not transfer, do not want to transfer, and will not transfer", which is very prominent. This year, another 3 billion yuan will be allocated to support the expansion of the scope of the pilot. In the next step, we will work with relevant departments to launch the digital transformation and upgrading of transportation infrastructure, support the digital transformation of a number of busy national highways, ordinary national highways and high-grade waterways, and promote the intelligent expansion, safety and efficiency of transportation facilities, and industrial integration.
Third, efforts should be made to expand and promote domestic demand. We will do a good job in the combination of fiscal and taxation policies, and support the implementation of large-scale equipment renewal and consumer goods trade-in actions. Focusing on the direction of upgrading residents' consumption, we will coordinate existing policies and new policies, adhere to the linkage between the central government and local governments, actively promote the trade-in of durable consumer goods such as automobiles and household appliances, and cultivate new consumption growth points; In the near future, we will also work with relevant departments to start the implementation of county-level charging and swapping facilities to make up for shortcomings, and this year will support about 70 pilot counties in 24 provinces to tap the consumption potential of rural new energy vehicles.
Fourth, we will strive to improve the quality and efficiency of infrastructure. We have made good use of policy tools such as the issuance of additional treasury bonds, local government special bonds, investment in the central budget, and vehicle purchase tax funds to promote the construction of key areas and major projects. For example, since 2022, a total of 13.7 billion yuan has been allocated to support 2 batches of 25 cities to implement the work of supplementing and strengthening the national comprehensive freight hub, and promote the reduction of comprehensive logistics costs.
In the next step, we will work with relevant departments to support some large and medium-sized cities to implement urban renewal actions, carry out underground pipe network renovation, etc., and at the same time support a number of national comprehensive freight hub cities to supplement and strengthen the chain, further make up for the shortcomings of infrastructure, and better play the pull effect of government investment.
That's all I have to say. Thank you.
Q
Bloomberg News:
My question is, what is the reason for the slow issuance of local special bonds since the beginning of this year? When is it expected to start accelerating? Thank you.
Wang Jianfan:
In order to implement the decisions and arrangements of the CPC Central Committee and the State Council, actively play the role of local government bonds, stimulate effective investment, and promote the continuous improvement of economic operation, in December 2023, the Ministry of Finance fulfilled the approval procedures in accordance with the law and issued part of the new local government debt limit for 2024 to all localities in advance.
In 2024, the Ministry of Finance, in conjunction with relevant departments, will continue to optimize and adjust the investment areas of special bonds and the scope of project capital, include more new energy, new infrastructure and new industries in the investment fields of special bonds, increase the scope of support for "independent new energy storage" and "comprehensive treatment of water environment in key river basins", and guide local governments to increase the support of "national industrial park infrastructure", "5G integrated application facilities", "urban village transformation", "affordable housing" and "student dormitories of ordinary colleges and universities" and other fields, and further plan major projects with obvious economic and social benefits, strong driving effects, and the masses looking forward to them, and sooner or later; "affordable housing" will be included in the scope of special bonds to be used as project capital, and further give play to the leverage role of special bonds. At the same time, guide local governments to do a good job in the reserve of special bond projects around the key investment areas determined by the Party Central Committee and the State Council, and strictly implement the list of prohibited projects for special bonds. At present, the Ministry of Finance is strengthening the review and control of projects in terms of project maturity, financing income balance, and compliance with the use of funds, so as to improve the quality of project reserves.
In the first quarter of 2024, all localities will issue special bonds within the new special debt limit issued in advance, which will be mainly used for the construction of projects in key areas determined by the CPC Central Committee and the State Council, such as municipal construction and industrial park infrastructure, social undertakings, transportation infrastructure, and affordable housing projects, which have played a positive role in strengthening the foundation, making up for shortcomings, benefiting people's livelihood, and expanding investment. The issuance scale in the first quarter is smaller than in previous years, on the one hand, in response to the impact of special factors such as the impact of the epidemic, the increase in the scale of issuance at the beginning of the year, on the other hand, it is also related to the demand for local project construction funds, construction conditions in winter and spring, bond market interest rates and other factors, at the same time, we have also done a lot of work in improving the quality of special bond projects and strengthening the preliminary preparation of projects.
In the next step, the Ministry of Finance will work with relevant departments to guide local governments to reasonably grasp the rhythm of special bond issuance, optimize the rhythm and intensity of government investment, guide and ensure the demand for funds for major projects, improve the performance of bond funds, give full play to the amplification effect of government investment, consolidate and enhance the upward trend of the economy, and continue to promote the economy to achieve effective qualitative improvement and reasonable quantitative growth. Thank you.
Q
Guangming Daily reporter:
At present, spring plowing and spring sowing have entered a critical period, what is the situation of the central government's financial support for spring plowing and preparation since the beginning of this year? What are the new measures? Thank you.
Wang Dongwei:
Thank you for your question, I will answer this question. Spring ploughing and production is of great significance to stabilizing agriculture throughout the year, especially grain production. The central government has strengthened the financial policy guarantee, and the relevant funds for agricultural production have been issued this year to support the realization of a good start to agricultural production throughout the year. Here are a few points for you:
First, we should pay attention to multi-dimensional efforts on the "ground" and support the consolidation of the foundation of grain production. There are three main measures: First, increase capital investment. Guide local governments to make good use of the 224.9 billion yuan of additional treasury bond funds issued by the end of 2023, promote high-quality and efficient projects such as high-standard farmland construction and irrigation area transformation and upgrading, and continue to support them through transfer payments this year, so as to build modern fertile land suitable for farming, drought and flood protection, and high and stable yield. The second is to raise the subsidy standard. The central government will increase the subsidy standard per mu for the construction of high-standard farmland from 1,300 yuan to 2,400 yuan, and at the same time cancel the local requirements for supporting funds for large grain-producing counties. The third is to expand the scope of support. 5.2 billion yuan will be allocated to expand the area of conservation tillage in black soil to 100 million mu. Allocate 4 billion yuan to expand the pilot project of comprehensive utilization of saline-alkali land from 2 provinces to 12 provinces, adhere to the combination of "planting suitable land" and "suitable planting for land", and expand agricultural production space.
Second, we should pay attention to multi-directional efforts in "technology" to support agricultural production to save costs and increase efficiency. There are three main points: First, support the increase of grain and oil yields in a large area. Allocate 4 billion yuan to support the implementation of large-scale grain and oil planting main yield improvement actions, and promote the application of dense planting, precision sowing and other production increase technologies. Allocate 3.4 billion yuan to support the development of green, high-yield and high-efficiency actions for key crops such as grain and oil, and accelerate the integration of good land, good seeds, good opportunities, good laws and good systems. The second is to support the revitalization of the seed industry. Allocate 11 billion yuan to continue to support and promote the key core technologies of key varieties such as corn and soybeans, carry out integrated pilot projects for the research and development, promotion and application of major varieties, and implement policies such as incentives for large counties for seed production. The third is to support the popularization and application of agricultural equipment. This year, 24.6 billion yuan will be allocated to support subsidies for the purchase and application of agricultural machinery, and efforts will be made to implement the scrapping and renewal of agricultural machinery. Just talked about a new round of large-scale equipment trade-in, and the scrapping and renewal of agricultural machinery is also one of them.
Third, we should pay attention to more assistance in "service" and support the improvement of the agricultural service system. It mainly includes: First, increase the support of socialized services. 8.8 billion yuan will be allocated to support the development of agricultural socialization services in various localities to help solve the problem of "who will farm the land". The second is to consolidate the foundation of agricultural talents. Allocate 5.8 billion yuan to support the implementation of the National Shennong Talent Program, the "Head Goose" Program and the cultivation of high-quality farmers, and accelerate the creation of an agricultural talent team that is compatible with agricultural development. The third is to strengthen agricultural credit guarantee services. Arrange 4.2 billion yuan in awards and subsidies to support the national agricultural credit guarantee system to innovate and improve guarantee products around grain production, processing, and circulation. As of the end of March, there were 1.13 million projects under insurance, with a balance of 398 billion yuan.
Fourth, we should pay attention to the comprehensive efforts in "policy" and improve the mechanism for guaranteeing the income of grain planting. There are four points: First, to ensure the income of grain farmers. Arrange 185.2 billion yuan to continue to implement subsidies for cultivated land protection, corn and soybean producers, and rice subsidies, and raise the minimum purchase price of wheat and early indica rice. Implement the policy of incentives and subsidies for domestic soybean crushing and processing, and stabilize the expectation of soybean planting. Second, it is necessary to strengthen support for the main grain-producing areas. This year, 57.1 billion yuan has been allocated for incentive funds in large grain-producing counties, achieving "19 consecutive increases". Arrange subsidies for agricultural insurance premiums of 56.2 billion yuan, and fully implement the insurance policy for the full cost and planting income of the three major grain crops. Third, we will give full support to agricultural disaster prevention, mitigation and relief. When agricultural spring ploughing, it is very important for wheat to carry out "one spray and three prevention", and we have issued 1.6 billion yuan in advance to do this work. In the first quarter, more than 1 billion yuan was also allocated to support the response to the impact of rain, snow, ice and drought. Strengthen the research and judgment of the situation of crop diseases and insect pests, and issue relevant prevention and control funds in the near future. Fourth, we should improve the diversified investment mechanism, give full play to the leverage role of financial funds, innovate investment methods, link with financial policies, and give full play to policy effects.
That's all I have to say, thank you.
Q
Shenzhen Satellite TV direct news reporter:
The scale of government procurement on the mainland is huge, and it plays an important role in guiding and promoting economic and social development. I would like to ask what new measures will be taken in the next step of government procurement to promote innovation and establish a modern industrial system?
Li Xianzhong:
Thank you for your question. In recent years, the Ministry of Finance has actively played the role of government procurement in supporting scientific and technological innovation, green environmental protection, small and medium-sized enterprises and rural revitalization, and contributed to high-quality economic and social development. In the next step, the Ministry of Finance will, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, continue to establish and improve the government procurement policy system in line with international rules, focusing on supporting the development of new productive forces and building a modern industrial system. This year, there are three main things to do:
First, it is necessary to study the establishment of a cooperative and innovative government procurement system. Cooperative innovation procurement refers to the purchase of R&D services and then the purchase of R&D products for innovative products that are not currently available in the market and need to be developed. We summarize the characteristics of this new procurement method as "two to two together": not only to "compensate" the supplier's R & D costs, but also to "give orders" by promising to purchase a certain amount of innovative products, through "sharing R & D risks" and "jointly developing the initial market", to stimulate the innovation vitality of enterprises. This method is conducive to promoting the integrated management of innovative products from demand, R&D to application promotion, and better supporting the application of technological innovation and the transformation of scientific and technological achievements. In the early stage, the Ministry of Finance studied and drafted the "Interim Measures for the Management of Innovative Procurement Methods for Government Procurement Cooperation", and publicly solicited opinions from all parties, which has now met the conditions for promulgation and is planned to be issued in the near future.
Second, we will continue to improve the government's green procurement policy. In recent years, in order to promote the green transformation and upgrading of the construction industry, the Ministry of Finance, together with relevant departments, has formulated policies for government procurement to support green building materials and promote the improvement of building quality, and has carried out pilot projects in some places. This year, on the basis of summarizing the pilot experience, expand the scope of policy implementation, the pilot cities will be expanded from 48 to 100, and the products covered by the government procurement demand standards for green building materials will be increased from 75 to 100, and further increase the support for the promotion and application of green buildings and green building materials. At the same time, we will further deepen and expand government procurement support policies for other types of green products, strengthen policies and measures for compulsory procurement or preferential procurement of eligible green products, and continue to play a leading role in government green procurement.
The third is to continue to promote the implementation of the policy of equal treatment of domestic and foreign-funded enterprises in government procurement. It is our policy orientation to treat the products and services produced and provided by domestic and foreign-funded enterprises in China equally in government procurement. In 2021, the Ministry of Finance issued the Notice on Implementing Relevant Policies on Equal Treatment of Domestic and Foreign-funded Enterprises in Government Procurement Activities, which was specifically reiterated and emphasized. In the next step, we will strengthen the daily supervision and management of purchasers and procurement agencies, focus on issues such as differential treatment of domestic and foreign-funded enterprises, continue to carry out special clean-ups, increase law enforcement, and punish all kinds of violations of laws and regulations in accordance with the law. In addition, we will also learn from international practices to study and formulate standards for government procurement of domestic products, so as to better ensure the implementation of the policy of equal treatment of domestic and foreign-funded enterprises in the field of government procurement.
That's all I have to say. Thank you.
Q
Daily Economic News Reporter:
The government work report proposes that starting from this year, it is planned to issue ultra-long-term special treasury bonds for several consecutive years, which will be used for the implementation of major national strategies and security capacity building in key areas, and 1 trillion yuan will be issued in 2024. What is the Ministry of Finance doing in the area of ultra-long-term special treasury bonds, and what are the next steps?
Wang Jianfan:
Thank you for your question. The issuance of ultra-long-term special treasury bonds is a major strategic deployment made by the CPC Central Committee and the State Council in view of the overall strategic situation, and is of great significance to promoting the construction of a strong country and the great cause of national rejuvenation. With the review and approval of the National People's Congress, the Ministry of Finance has included the 2024 ultra-long-term special treasury bond revenue and expenditure in the 2024 budget. At the same time, we will steadily advance the preparatory work for ultra-long-term special treasury bonds, and actively participate in the formulation of action plans to support major national strategies and security capacity building in key areas.
In the next step, the Ministry of Finance will continue to do a good job in implementation, closely coordinate and cooperate with relevant parties, and do a good job in all aspects of ultra-long-term special treasury bonds.
First, according to the distribution of ultra-long-term special treasury bonds, the issuance of ultra-long-term special treasury bonds should be launched in a timely manner. We will scientifically design the maturity of the issuance varieties based on the market demand of the bond market and the implementation cycle of the construction project corresponding to the ultra-long-term special treasury bonds, so as to achieve a reasonable match with the project term. At the same time, we will coordinate the issuance of general treasury bonds and special treasury bonds, rationally arrange the pace of issuance, and effectively ensure the capital needs of special treasury bond projects.
The second is to strengthen the overall planning of central and local funds, stock and incremental funds, and form a synergy with ultra-long-term special treasury bond funds to improve the overall efficiency of funds.
Third, in light of the actual situation of ultra-long-term special treasury bond funds, we should study the establishment of a regulatory mechanism and strengthen supervision over the entire process of fund allocation, issuance, and use, so as to ensure standardized, safe, and efficient use. Thank you.
Q
Jimu News reporter:
Macro data show that the economy as a whole continued to rebound in the first quarter of this year. May I ask, in what ways will the proactive fiscal policy in the next stage be focused on consolidating the momentum of economic improvement?
Wang Dongwei:
Thank you for your question, I'm here to answer that. This year's "Government Work Report" makes it clear that the active fiscal policy should be moderately strengthened, and the quality and efficiency should be improved. Judging from the revenue and expenditure situation in the first quarter, the fiscal policy is moving forward, and the policy effectiveness is being released at an accelerated pace, providing strong support for the sustained economic recovery. In the next step, the Ministry of Finance will focus on six aspects:
First, we will fully support scientific and technological innovation to lead industrial innovation. In line with national strategic needs, we will increase investment in basic, applied and cutting-edge research, promote the acceleration of the implementation of a number of major national science and technology projects, support the development of disruptive technologies and cutting-edge technology research, and promote key core technology research. Implement structural tax and fee reduction policies, focus on supporting scientific and technological innovation and the development of manufacturing industry, and make overall use of special financial funds and government investment funds and other policy tools to support the development and growth of strategic emerging industries and accelerate the transformation and upgrading of traditional industries.
The second is to focus on supporting the expansion of domestic demand. Coordinate and make good use of relevant government bond funds, local government special bonds, central budget investment and other policy tools to promote the expansion of effective social investment. At the same time, we will implement and improve fiscal and tax support policies, actively promote the trade-in of durable consumer goods such as automobiles and home appliances, and promote the expansion of domestic consumption.
Third, we will actively support the improvement and enhancement of people's livelihood and well-being. In terms of education, we will focus on increasing investment in senior secondary education to ensure the financial assistance needs of students. Promote the high-quality and balanced development of compulsory education, promote the universal and inclusive pre-school education and the conditions for vocational schools. Promote the construction of world-class universities and advantageous disciplines with Chinese characteristics. In terms of social security, we will increase subsidies to the basic pension insurance fund, promote the improvement of public health services, vigorously implement the employment priority policy, and do a good job in helping the needy. In terms of environmental protection, we will continue to support the fight against pollution, and I will introduce two very important points to you, one is to set up a subsidy fund for the construction of the "Three Norths" project to support key projects of ecosystem restoration and governance, and the other is to set up a special fund for the treatment of waste electrical and electronic products to promote the comprehensive utilization of resources.
Fourth, we need to ensure food and energy security at a higher level. We will further increase the incentives for large grain-producing counties, achieve a "nineteenth consecutive increase" in the scale of funds, and more effectively mobilize the enthusiasm of the main producing areas to focus on agriculture and grasp grain. At the same time, we will increase the support of agricultural insurance premium subsidy policies and increase the insurance protection of bulk agricultural products. Actively support the improvement of energy supply and price stability, promote the healthy and sustainable development of renewable energy, support and encourage the increase of unconventional natural gas production, and take multiple measures to improve energy security capabilities.
Fifth, promote the coordinated development of urban and rural areas. Implement and improve fiscal and taxation policies, vigorously promote new-type urbanization, support local governments to promote the urbanization of the agricultural transfer population, promote the implementation of major regional strategies, and increase support for special areas such as old revolutionary base areas, ethnic minority areas, and border areas.
Sixth, it is necessary to strengthen the management of budget implementation and the monitoring of financial operations. Guide and urge local governments and some departments to get a good grasp of the budgets that have been issued and refine them into specific projects, so that the effectiveness of policies can be released as soon as possible and the benefits of the use of funds can be brought into full play. At the same time, we will strengthen the analysis and judgment of fiscal revenue and expenditure, strengthen the monitoring of the operation of the "three guarantees" at the grassroots level, resolutely implement the requirements of party and government organs to live a tight life, strengthen budget implementation constraints, and promote the safe and standardized use of financial funds.
While doing a good job in the above six aspects, it is also necessary to better coordinate development and security in accordance with the decisions and arrangements of the Party Central Committee and the State Council, continue to promote the prevention and resolution of local government debt risks, accelerate the implementation of the debt plan, and promote the reform and transformation of local government financing platforms by category.
That's all I have to answer this question. Thank you.
THE END
Source: China News Network