Rail transport will be included in the pilot reform

From January to July, the country’s public finance revenue was 8.04 trillion yuan, an increase of 8% over the same period of last year, and the growth rate dropped by 3.6 percentage points. Among them, the central government revenue only increased by 2.6% year-on-year. With the slowdown in the growth of fiscal revenue, how can we protect people's livelihood expenditures?

Where does the financial investment go?

Some of the expenditures are not very realistic, and some projects should be evaluated. "This year, the growth rate of national fiscal revenue has slowed down. In particular, from January to July, the central government revenue has increased by 2.6%, which is 4.4 percentage points lower than the budget target of 7%. As China's economy gradually recovers, the central government revenue will move into a normal medium-speed growth, said Lou Jiwei, the Minister of Finance.

Lou Jiwei said that due to the slowdown in economic growth, the increase in major economic indicators has declined, affecting the growth of fiscal revenue. This year, we have further expanded pilot reform regions and industries, introduced the implementation of preferential income tax policies for small and micro enterprises, and raised tax reduction policies such as value-added tax and business tax thresholds, which have a certain impact on fiscal revenue this year, and are mainly reflected in the central government's fiscal revenue reduction. More. At the same time, the recovery of the global economy is slow, and the growth of China’s foreign trade imports and exports has slowed down significantly, and the growth rate of tax revenues at import has dropped significantly. In addition, some special factors, such as the high value of special revenues received at the beginning of last year, led to rapid growth of fiscal revenue in the first half of last year and a relatively high base, which also had a certain impact on the growth of fiscal revenue in the first half of this year. Looking at the annual income trend, the increase in central government revenue in the past two months has rebounded. In the coming months, the cumulative increase in central government revenue will gradually increase.

Lou Jiwei pointed out that safeguarding and improving people's livelihood is a priority for public finances. In the case of a slowdown in the growth of fiscal revenue, safeguarding and improving people's livelihood must be done with the best of our ability and in a reasonable manner. The first is how much money to do and how much can not be done. Because the expenditure beyond fiscal revenue capacity is unsustainable, this is the basic principle of finance.

In 2013, the central government further optimized the expenditure structure, and the central budget allocated a total of 1.57 trillion yuan in expenditures on education, health care, social security and employment, affordable housing projects, and culture that are directly related to people’s lives. The annual budget increased by 13.5%, an increase of 9.6% over the previous year's final figure. Most of the central government's tax refunds and general transfers have also been used to protect and improve people's livelihood.

“At the same time that we are keeping the bottom line, we must pay more attention to sending charity in the people’s livelihood, highlight the focus of input, and make the development results more fair to the general public.” Lou Jiwei said that in terms of financial funding arrangements, some expenses are not in line with Actually, some specific projects are not reasonable. In the future, the preparation of the budget should be based on the actual situation to determine the focus of expenditure to meet the urgent needs of the people. At the same time, some project expenditures should be evaluated to see whether they have achieved the expected goals. If not, some adjustments will be made to improve the use of financial funds. For example, the investment in compulsory education should be used more to solve the problem of migrant workers moving to school and improve the conditions for running a contiguous and impoverished region.

How to change the tax system?

The railway transport and post and telecommunication industries will be included in the trial reform at the beginning of next year. With regard to the difficulty of increasing production and business pressures for some companies, the Ministry of Finance has taken targeted measures this year to actively ease the production and operation difficulties of enterprises and enhance their internal viability.

Starting from August 1 this year, VAT small-scale taxpayers and business tax payers who do not exceed 20,000 yuan in monthly sales will temporarily be exempted from VAT and business tax, thus reducing the burden on enterprises. Supporting small and micro enterprises means supporting employment. This is also an important part of safeguarding and improving people's livelihood. At the same time, to further clean up and standardize administrative charges, the relevant ministries and commissions issued notices to cancel and exempt certain administrative fees, and reduced the standards for the inspection and quarantine of entry and exit goods. Recently, they issued a notice and decided to lower the fees for 20 administrative fees from October 1.

“The reform of the reform of the camp is the highlight of the reform of the fiscal and taxation system. This reform began in Shanghai on January 1st last year and then expanded to Beijing, Jiangsu, and other provinces and cities. The reform pilots were introduced to the country on August 1 this year. Looking at the situation, the reform has further eliminated the double taxation, optimized the structure of the tax system, and lowered the tax burden on enterprises.” Lou Jiwei said that in 2012, the overall tax cuts for reform pilots were 42.6 billion yuan, and the scale of tax cuts exceeded 500 in the first half of the year. 100 million yuan. The effect of the reform of the reform of the camp is gradually emerging. The development of the service industry in the pilot areas has been accelerated and the ability to absorb employment has increased significantly.

At present, the Ministry of Finance and the State Administration of Taxation are actively making preparations for the introduction of pilot projects for the railway transportation and post and telecommunications industries. It is expected that these two industries will be included in the pilot scope by the end of this year or early next year. At the same time, it will seriously study the reform plans for other service industries that have not yet been included in the scope of the trial, and strive to fully complete the reform of the reform of the business in 2015.

How to manage local debt?

Local borrowing debt can only be used for constructive expenditures and cannot be used for recurrent expenditures. “The next step, the financial sector will continue to follow the decision-making and deployment of the central government and comprehensively use fiscal and taxation policy tools to stabilize the growth, adjust the structure, and benefit the people’s livelihood. The field and key links will play a greater role," Lou Jiwei said.

In order to implement the eight central regulations, the government has taken the lead and this year, the central government further reduced general expenses by 5% on the basis that the budget for “three public funds” will only decrease or not increase. While compressing general expenditures, more financial resources should be allocated to protecting and improving people’s livelihood, to supporting and encouraging the development of strategic emerging industries, promoting the transformation and upgrading of traditional industries, and promoting the adjustment of industrial structure and the transformation of economic development patterns. For example, to support the implementation of the "broadband China" strategy and the "Information for the People" project to promote information consumption; support the development of energy-saving and environmental protection industries; promote the cultivation of rigid demand for environmental protection industries; and adopt measures such as setting up railway development funds and arranging transitional subsidies for railways. Speed ​​up the construction of railways and improve the capacity of railway freight transport.

Regarding the issue of local government debt that is of concern to the society, Lou Jiwei said: “At present, the local government debt data is still being further verified. From the current situation, the risk of China’s local government debt is generally controllable, but local areas Risk can not be ignored."

Lou Jiwei pointed out that there are three main principles for advancing the reform of local government debt management: First, local borrowing debt can only be used for constructive expenditures and cannot be used for recurrent expenditure. Recurrent expenditure, if it is to be resolved by debt, will go nowhere. The second is the classification management of local borrowing debts. The debt of public welfare undertakings should be made up of the government as the main body, and later be repaid with public financial revenues; the debts of profitable projects should be strengthened in management, and the proceeds should be used to repay the debts. There should be institutional constraints on both types of debt, and the central government should appropriately control it. The third is to incorporate the revenue and expenditure of local government debt into budget management, gradually form a standardized local government debt financing mechanism with local government bonds as the main body, and strictly control the local government’s new debt.