Deputy Minister highlights fiscal tools stabilizing economy

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Xu Hongcai, Vice Minister of Finance

China has taken proactive fiscal measures on several fronts this year in the areas of tax and fee reductions, public budget spending and bond issuance to stabilize the economy and ensure the well-being of the people. population, said a senior official.

“Tax and fee cuts are key measures to maintain stable macroeconomic performance,” Vice Finance Minister Xu Hongcai said in an interview with Xinhua, saying China is accelerating the implementation of related policies.

Since the beginning of this year, the ministry has implemented more than 20 tax support policies, including large-scale value-added tax (VAT) credit refunds and full refund of unpaid VAT credits of certain industries, according to Mr. Xu.

From April 1 to 28, a total of 625.6 billion yuan ($94.53 billion) of unpaid VAT credits for micro-enterprises and newly added credits for other industries were completed, Xi said. Xu.

“In May, overdue VAT credits for small and medium enterprises will be refunded in advance, and tax refunds for large enterprises will also be expedited later,” Xu said.

Meanwhile, the country has issued preferential policies to boost support for manufacturing and micro and small businesses. Work is underway to promote rapid implementation of policies.

China has introduced measures to suspend advance VAT payments from air and rail transport companies. It also decided to abolish VAT on the income of public transport service providers.

Xu also noted that China has accelerated its public budget spending and increased spending in key areas. By mid-April, 7.24 trillion yuan had been spent, up 7.7 percent year on year and accounting for 27.1 percent of the country’s total budget.

The country has effectively secured spending on science and technology, modern agriculture, health, education and other key areas related to people’s livelihoods and regional development.

To ensure local livelihoods, incomes and government functioning, China will increase its transfer payments to local governments to about 9.8 trillion yuan this year, up 18 percent from 2021, Xu said. , adding that local public budget expenditure would increase by 8.9%. year after year in 2022.

In terms of related emissions, Xu highlighted the role of local government special bonds in boosting investment and infrastructure construction. China plans to issue 3.65 trillion yuan of such bonds this year to increase investment and stabilize development, he said.

China’s treasury bill market has remained stable despite recent swings in the global treasury bill market, Xu said, noting that the slight CPI growth since the start of the year, as well as monetary policy prudent country, help to stabilize the market.

“The stable operation of the treasury bill market reflects investors’ confidence in the healthy development of the Chinese economy,” Xu said, adding that “with strong resilience and vitality, the fundamentals of the Chinese economy will remain unchanged. “.

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